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<P style="FONT-SIZE: 14pt; MARGIN: 0px; LINE-HEIGHT: 16pt"
align=center><B>UNITED STATES SECURITIES AND EXCHANGE COMMISSION</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>Washington, D.C. &nbsp;20549</B></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="FONT-SIZE: 14pt; MARGIN: 0px; LINE-HEIGHT: 16pt" align=center><B>FORM
8-K</B></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center>CURRENT
REPORT</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center>PURSUANT
TO SECTION 13 OR 15(d) OF </P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center>THE
SECURITIES EXCHANGE ACT OF 1934</P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt" align=center>Date of
Report: &nbsp;April 14, 2010</P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt" align=center>Date of
Earliest Event Reported: &nbsp;April 9, 2010</P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="FONT-SIZE: 18.5pt; MARGIN: 0px; LINE-HEIGHT: 20.5pt"
align=center><B>AdCare Health Systems, Inc.</B></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt"
align=center><I>(Exact Name of Registrant as specified in its Charter)</I></P>
<P style="MARGIN: 0px" align=center><BR></P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 align=center>
<TR style="DISPLAY: none; FONT-SIZE: 0px" height=0>
<TD width=400></TD>
<TD width=357></TD></TR>
<TR>
<TD vAlign=bottom width=400>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt"
align=center><B>Ohio</B></P></TD>
<TD vAlign=bottom width=357>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt"
align=center><B>31-1332119</B></P></TD></TR>
<TR>
<TD vAlign=top width=400>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt"
align=center><I>(State or other jurisdiction of</I></P>
<P
style="FONT-SIZE: 10.5pt; MARGIN: 0px; TEXT-INDENT: 87px; LINE-HEIGHT: 12.5pt"><I>incorporation
or organization)</I></P></TD>
<TD vAlign=top width=357>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt"
align=center><I>(I.R.S. Employer Identification No.)</I></P></TD></TR>
<TR>
<TD vAlign=bottom width=400>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt"
align=center><B>5057 Troy Rd, Springfield, OH</B></P></TD>
<TD vAlign=bottom width=357>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt"
align=center><B>45502-9032</B></P></TD></TR>
<TR>
<TD vAlign=top width=400>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt"
align=center><I>(Address of principal executive offices)</I></P></TD>
<TD vAlign=top width=357>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt"
align=center><I>(Zip Code)</I></P></TD></TR></TABLE>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt"
align=center><B>Registrant&#146;s Telephone Number, Including Area Code</B></P>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt"
align=center><B>(937) 964-8974</B></P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt"
align=justify>Check the appropriate box below if the form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of
the following provisions (See General Instruction A2. below):</P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt"
align=justify>[ &nbsp;] Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425)</P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt"
align=justify>[ &nbsp;] Soliciting material pursuant to Rule 14a-12 under the
Exchange Act (17 CFR 240.14a-12)</P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt"
align=justify>[ &nbsp;] Pre-commencement communications pursuant to Rule
14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)</P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt"
align=justify>[ &nbsp;] Pre-commencement communications pursuant to Rule
13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c)).</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 16px" align=justify><BR><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt" align=center>1</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; PAGE-BREAK-BEFORE: always; LINE-HEIGHT: 12.5pt"
align=justify><B>Item 1.01. &nbsp;Entry into a Material Definitive
Agreement.</B></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt"
align=justify>On April 9, 2010, Riverchase Village ADK, LLC, a wholly owned
subsidiary of AdCare Health Systems, Inc. (the &#147;Company&#148;) entered a Purchase
Agreement with CSC Enid Properties, LLC, an Oklahoma limited liability company,
to acquire the assets of Riverchase Village, a 105 bed assisted living facility
located in Hoover, Alabama. &nbsp;The purchase price is $5,000,000 with an
anticipated closing date of May 28, 2010. &nbsp;The Company paid $150,000 upon
signing the purchase agreement as earnest money. &nbsp;</P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt"
align=justify>If the Company terminates the purchase agreement because of
seller&#146;s failure to satisfy certain conditions of the purchase agreement, the
earnest money will be returned to the Company. &nbsp;Additionally, certain
conditions of the agreement require the seller to pay the Company a break up fee
of $75,000 if seller fails to close as agreed. &nbsp;If the Company fails to
complete the purchase for reasons other than the defined conditions within the
purchase agreement, then the seller will retain the earnest money. &nbsp;Upon
closing of the purchase, the earnest money will be applied against the purchase
price.</P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt"
align=justify><B>Item 8.01 Other Matters</B></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt"
align=justify>On April 13, 2010, the Company issued a press release announcing
their entry into the purchase agreement described under Item 1.01 above. &nbsp;A
copy of the press release is attached as Exhibit 99.1 to this Form 8-K.</P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt"
align=justify>The information in this Item 8.01 and Exhibit 99.1 is being
furnished and shall not be deemed &#147;filed&#148; for purposes of Section 18 of the
Securities and Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;) or
otherwise subject to the liabilities of that section, nor shall it be deemed
incorporated by reference in any filing under the Securities Act of 1933, as
amended, or the Exchange Act, except as shall be expressly set forth in such
filing.</P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt"
align=justify><B>Item 9.01. &nbsp;Financial Statements and Exhibits.</B></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; TEXT-INDENT: 48px; LINE-HEIGHT: 12.5pt"
align=justify>Exhibits</P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0>
<TR style="DISPLAY: none; FONT-SIZE: 0px" height=0>
<TD width=127></TD>
<TD width=511></TD></TR>
<TR>
<TD vAlign=top width=127>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt"
align=justify><U>Exhibit Number</U></P></TD>
<TD vAlign=top width=511>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt"
align=justify><U>Description of Exhibit</U></P></TD></TR>
<TR>
<TD vAlign=top width=127>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt"
align=justify>99.1</P></TD>
<TD vAlign=top width=511>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt"
align=justify>Press Release dated April 13, 2010</P></TD></TR></TABLE>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt"
align=justify>&nbsp;&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 14px" align=justify><BR></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 16px" align=center><BR><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt" align=center>2</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px; LINE-HEIGHT: 12.5pt"
align=center>SIGNATURES</P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; TEXT-INDENT: 48px; LINE-HEIGHT: 12.5pt"
align=justify>Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereto duly authorized.</P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt"
align=justify>Date: &nbsp;April 14, 2010</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 336px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt">ADCARE
HEALTH SYSTEMS, INC.</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 336px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt">By:<U>
&nbsp;/s/ Scott Cunningham</U></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 336px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt">Name:
Scott Cunningham</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 336px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt">Title:
&nbsp;Chief Financial Officer</P>
<P style="MARGIN: 0px" align=right><BR><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt" align=center>3</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="FONT-SIZE: 10.5pt; PAGE-BREAK-BEFORE: always; MARGIN: 0px; LINE-HEIGHT: 17.75pt"
align=right>Exhibit 99.1</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 36px; FONT-SIZE: 16pt; MARGIN-BOTTOM: 10px; LINE-HEIGHT: 18pt"
align=center><B>AdCare Health Systems to Acquire Alabama Assisted Living
Facility for $5.0 million</B></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt"><B>SPRINGFIELD, Ohio,
April 13, 2010 </B><FONT style="FONT-FAMILY: Arial">- </FONT>AdCare Health
Systems, Inc. (NYSE AMEX: ADK), an Ohio-based long-term care, home care and
management company, has signed a definitive purchase agreement for a
privately-held assisted living facility in Hoover, Alabama (a suburb of
Birmingham) for $5.0 million.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">The 105-unit
facility, which AdCare is purchasing from a bank, is currently 59% occupied. At
85% occupancy, the facility is capable of producing annual revenue of more than
$3.0 million. Management expects to close the transaction within 45-60 days.
</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">&#147;This is the third
facility we have agreed to acquire in the last few weeks, and one of several
potential acquisitions in our pipeline,&#148; said Chris Brogdon, AdCare&#146;s vice
chairman and chief acquisitions officer. &#147;We have secured financing to purchase
this facility, and when occupancy improves under our more capable management, we
expect this acquisition to be very profitable for AdCare.&#148;</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">&#147;We plan to take
further advantage of foreclosures and poorly run facilities, which we can
purchase below market prices, and target acquisitions of both profitable and
turnaround properties to grow our company,&#148; said Brogdon.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">The financing to
purchase the 105-unit assisted living facility will be provided via a 30 year
fixed-rate loan. According to Brogdon: &#147;This kind of affordable, long-term
financing is typical of what we expect for future acquisitions of this type. It
allows AdCare to expand its operations quickly through acquisitions without
being dilutive to shareholders or creating a complicated capital structure.&#148;</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">Brogdon joined AdCare
last September when the company announced a new M&amp;A growth strategy to build
upon its strong reputation for operational efficiency and high-quality living
environments, as well as its increasing financial strength. AdCare recently
reported its fifth consecutive year of revenue growth and its first profitable
year as a public company.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt"><B>About AdCare
Health Systems</B></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">AdCare Health
Systems, Inc. (NYSE AMEX: ADK ) develops, owns and manages assisted living
facilities, nursing homes and retirement communities and provides home health
care services. Prior to becoming a publicly traded company in November of 2006,
AdCare operated as a private company for 18 years. AdCare's 850 employees
provide high-quality care, management services and other services for patients
and residents residing in 19 facilities, six of which are assisted living
facilities, 11 skilled nursing centers and two independent senior living
communities. The company has ownership interests in eight of those facilities.
In the ever-expanding marketplace of long-term care, AdCare's mission is to
provide quality healthcare services to the elderly. For more information about
AdCare, visit <FONT
style="COLOR: #0000ff"><U>www.adcarehealth.com</U></FONT>.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt"><B>Safe Harbor
Statement</B></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">Statements contained
in this press release that are not historical facts may be forward-looking
statements within the meaning of federal law. Such forward-looking statements
reflect management's beliefs and assumptions and are based on information
currently available to management. The forward-looking statements involve known
and unknown risks, results, performance or achievements of the company to differ
materially from those expressed or implied in such statements. Such factors are
identified in the public filings made by the company with the Securities and
Exchange Commission and include the company's ability to secure lines of credit
and/or an acquisition credit facility, find suitable acquisition properties at
favorable terms, changes in the health care industry because of political and
economic influences, changes in regulations governing the industry, changes in
</P>
<P style="MARGIN: 0px"><BR><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt" align=center>4</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="FONT-SIZE: 12pt; PAGE-BREAK-BEFORE: always; MARGIN: 0px; LINE-HEIGHT: 14pt">reimbursement
levels including those under the Medicare and Medicaid programs and changes in
the competitive marketplace. There can be no assurance that such factors or
other factors will not affect the accuracy of such forward-looking
statements.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt"><B>Company
Contact</B></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">Chris Brogdon</P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">Vice Chairman and
Chief Acquisitions Officer</P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">AdCare Health
Systems, Inc.</P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">Tel (937)
964-8974</P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">Email: <FONT
style="COLOR: #0000ff"><U>info@adcarehealth.com</U></FONT></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt"><B>Investor
Relations</B></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">Scott Liolios or Ron
Both</P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">Liolios Group,
Inc.</P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">Tel (949)
574-3860</P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">Email:
info@liolios.com</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 14px" align=justify>&nbsp;</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 14px" align=justify><BR><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt" align=center>5</P>
<P
style="MARGIN: 0px"><BR></P></BODY>
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SECURITIES AND EXCHANGE COMMISSION
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
FORM
8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(d) OF
THE
SECURITIES EXCHANGE ACT OF 1934
Date of
Report:  April 14, 2010
Date of
Earliest Event Reported:  April 9, 2010
AdCare Health Systems, Inc.
(Exact Name of Registrant as specified in its Charter)
Ohio
31-1332119
(State or other jurisdiction of
incorporation
or organization)
(I.R.S. Employer Identification No.)
5057 Troy Rd, Springfield, OH
45502-9032
(Address of principal executive offices)
(Zip Code)
Registrant's Telephone Number, Including Area Code
(937) 964-8974
Check the appropriate box below if the form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of
the following provisions (See General Instruction A2. below):
[  ] Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425)
[  ] Soliciting material pursuant to Rule 14a-12 under the
Exchange Act (17 CFR 240.14a-12)
[  ] Pre-commencement communications pursuant to Rule
14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)
[  ] Pre-commencement communications pursuant to Rule
13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c)).
1
Item 1.01.  Entry into a Material Definitive
Agreement.
On April 9, 2010, Riverchase Village ADK, LLC, a wholly owned
subsidiary of AdCare Health Systems, Inc. (the "Company") entered a Purchase
Agreement with CSC Enid Properties, LLC, an Oklahoma limited liability company,
to acquire the assets of Riverchase Village, a 105 bed assisted living facility
located in Hoover, Alabama.  The purchase price is $5,000,000 with an
anticipated closing date of May 28, 2010.  The Company paid $150,000 upon
signing the purchase agreement as earnest money.
If the Company terminates the purchase agreement because of
seller's failure to satisfy certain conditions of the purchase agreement, the
earnest money will be returned to the Company.  Additionally, certain
conditions of the agreement require the seller to pay the Company a break up fee
of $75,000 if seller fails to close as agreed.  If the Company fails to
complete the purchase for reasons other than the defined conditions within the
purchase agreement, then the seller will retain the earnest money.  Upon
closing of the purchase, the earnest money will be applied against the purchase
price.
Item 8.01 Other Matters
On April 13, 2010, the Company issued a press release announcing
their entry into the purchase agreement described under Item 1.01 above.  A
copy of the press release is attached as Exhibit 99.1 to this Form 8-K.
The information in this Item 8.01 and Exhibit 99.1 is being
furnished and shall not be deemed "filed" for purposes of Section 18 of the
Securities and Exchange Act of 1934, as amended (the "Exchange Act") or
otherwise subject to the liabilities of that section, nor shall it be deemed
incorporated by reference in any filing under the Securities Act of 1933, as
amended, or the Exchange Act, except as shall be expressly set forth in such
filing.
Item 9.01.  Financial Statements and Exhibits.
Exhibits
Exhibit Number
Description of Exhibit
99.1
Press Release dated April 13, 2010
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereto duly authorized.
Date:  April 14, 2010
ADCARE
HEALTH SYSTEMS, INC.
By:
/s/ Scott Cunningham
Name:
Scott Cunningham
Title:
 Chief Financial Officer
3
Exhibit 99.1
AdCare Health Systems to Acquire Alabama Assisted Living
Facility for $5.0 million
SPRINGFIELD, Ohio,
April 13, 2010
-
AdCare Health
Systems, Inc. (NYSE AMEX: ADK), an Ohio-based long-term care, home care and
management company, has signed a definitive purchase agreement for a
privately-held assisted living facility in Hoover, Alabama (a suburb of
Birmingham) for $5.0 million.
The 105-unit
facility, which AdCare is purchasing from a bank, is currently 59% occupied. At
85% occupancy, the facility is capable of producing annual revenue of more than
$3.0 million. Management expects to close the transaction within 45-60 days.
"This is the third
facility we have agreed to acquire in the last few weeks, and one of several
potential acquisitions in our pipeline," said Chris Brogdon, AdCare's vice
chairman and chief acquisitions officer. "We have secured financing to purchase
this facility, and when occupancy improves under our more capable management, we
expect this acquisition to be very profitable for AdCare."
"We plan to take
further advantage of foreclosures and poorly run facilities, which we can
purchase below market prices, and target acquisitions of both profitable and
turnaround properties to grow our company," said Brogdon.
The financing to
purchase the 105-unit assisted living facility will be provided via a 30 year
fixed-rate loan. According to Brogdon: "This kind of affordable, long-term
financing is typical of what we expect for future acquisitions of this type. It
allows AdCare to expand its operations quickly through acquisitions without
being dilutive to shareholders or creating a complicated capital structure."
Brogdon joined AdCare
last September when the company announced a new M&A growth strategy to build
upon its strong reputation for operational efficiency and high-quality living
environments, as well as its increasing financial strength. AdCare recently
reported its fifth consecutive year of revenue growth and its first profitable
year as a public company.
About AdCare
Health Systems
AdCare Health
Systems, Inc. (NYSE AMEX: ADK ) develops, owns and manages assisted living
facilities, nursing homes and retirement communities and provides home health
care services. Prior to becoming a publicly traded company in November of 2006,
AdCare operated as a private company for 18 years. AdCare's 850 employees
provide high-quality care, management services and other services for patients
and residents residing in 19 facilities, six of which are assisted living
facilities, 11 skilled nursing centers and two independent senior living
communities. The company has ownership interests in eight of those facilities.
In the ever-expanding marketplace of long-term care, AdCare's mission is to
provide quality healthcare services to the elderly. For more information about
AdCare, visit
www.adcarehealth.com
.
Safe Harbor
Statement
Statements contained
in this press release that are not historical facts may be forward-looking
statements within the meaning of federal law. Such forward-looking statements
reflect management's beliefs and assumptions and are based on information
currently available to management. The forward-looking statements involve known
and unknown risks, results, performance or achievements of the company to differ
materially from those expressed or implied in such statements. Such factors are
identified in the public filings made by the company with the Securities and
Exchange Commission and include the company's ability to secure lines of credit
and/or an acquisition credit facility, find suitable acquisition properties at
favorable terms, changes in the health care industry because of political and
economic influences, changes in regulations governing the industry, changes in
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reimbursement
levels including those under the Medicare and Medicaid programs and changes in
the competitive marketplace. There can be no assurance that such factors or
other factors will not affect the accuracy of such forward-looking
statements.
Company
Contact
Chris Brogdon
Vice Chairman and
Chief Acquisitions Officer
AdCare Health
Systems, Inc.
Tel (937)
964-8974
Email:
info@adcarehealth.com
Investor
Relations
Scott Liolios or Ron
Both
Liolios Group,
Inc.
Tel (949)
574-3860
Email:
info@liolios.com
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