A Nebraska nursing home has been placed in receivership following the death of its long-time owner, state officials announced last week.

Nebraska Attorney General Doug Peterson went to court to ask that Matney’s Colonial Manor, a 77-bed skilled nursing and assisted living facility in South Sioux City, be placed into receivership for “the health and the safety of its residents.”

The state Department of Health and Human Services said it was notified July 25 that the facility’s owner had died and that the family would not continue to operate the facility, and would not make Monday’s payroll. DHHS also said it visited the facility last week and found suitable levels of medical equipment and food.

Sharon Colling, the president at Nebraska’s Lantern Health Services and former interim CEO of the American College of Health Care Administrators, is the court-appointed receiver. Lantern assumes all responsibility of the operations, and Colling said she had contacted all staff and residents to notify them of the receivership.

“The response has been incredibly warm and cooperative,” Colling told McKnight’s on Monday. “Everybody understands that the best interest of the residents and staff are the most important thing. Receivership is challenging because of the air of uncertainty. But there are cases where it is truly in the best interests of the enterprise.”

The parties were due back in court Tuesday to determine whether the receivership will be extended.

Matney’s had been operated since 1974 by Edward Matney, according to Nursing Home Compare. The Sioux City resident, who was 67 and a father of five, died unexpectedly on June 27, according to local reports. The facility is a for-profit community with four stars on Nursing Home Compare.