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<P>&nbsp;</P></TD></TR></TABLE>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="FONT-SIZE: 14pt; MARGIN: 0px; LINE-HEIGHT: 16pt"
align=center><B>UNITED STATES SECURITIES AND EXCHANGE COMMISSION</B></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>Washington, D.C. 20549</B></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt" align=center><B>FORM
8-K</B></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt"
align=center>CURRENT REPORT</P>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt"
align=center>PURSUANT TO SECTION 13 OR 15(d) OF </P>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt" align=center>THE
SECURITIES EXCHANGE ACT OF 1934</P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt" align=center>Date
of Report: &nbsp;May 19, 2008</P>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt" align=center>Date
of earliest event reported: &nbsp;May 16, 2008</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: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt"
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>
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<TD width=319></TD></TR>
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<P style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt"
align=center>Ohio</P>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt"
align=center><I>(State or Other Jurisdiction</I></P>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt"
align=center><I>of Incorporation)</I></P></TD>
<TD vAlign=top width=319>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt"
align=center>333-131542</P>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt"
align=center><I>(Commission file Number)</I></P></TD></TR></TABLE>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt"
align=center>31-1332119</P>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt"
align=center><I>(IRS Employer Identification No.)</I></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt" align=center>5057
Troy Road, Springfield, Ohio &nbsp;45502-9032</P>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt"
align=center><I>(Address of principal executive offices) &nbsp;(Zip
code)</I></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt"
align=center><I>Registrant&#146;s Telephone Number, Including Area Code</I></P>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt"
align=center>(937) 964-8974</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;] &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;] &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;] &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;] &nbsp;Pre-commencement communications pursuant to Rule
13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c)).</P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 align=center>
<TR style="DISPLAY: none; FONT-SIZE: 0px" height=0>
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<P style="MARGIN: 0px"><BR></P></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 16px" align=justify><BR><BR></P>
<P style="MARGIN: 0px" align=center><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: 12pt; MARGIN-BOTTOM: 16px; PAGE-BREAK-BEFORE: always; LINE-HEIGHT: 14pt"
align=justify><B>Item 4.01. &nbsp;Changes in Registrant&#146;s Certifying
Accountant</B></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 12pt; MARGIN-BOTTOM: 16px; LINE-HEIGHT: 14pt"
align=justify>On May 16, 2008, the Audit Committee of the Board of Directors of
AdCare Health Systems, Inc. (the &#147;Company&#148;) dismissed Rachlin LLP (Rachlin) as
the Company&#146;s independent registered public accounting firm. </P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 12pt; MARGIN-BOTTOM: 16px; LINE-HEIGHT: 14pt"
align=justify>The audit reports of Rachlin on the consolidated financial
statements of the Company and its subsidiaries as of and for the years ended
December 31, 2007 and 2006 did not contain an adverse opinion or disclaimer of
opinion, and were not qualified or modified as to uncertainty, audit scope or
accounting principles except for an explanatory paragraph related to certain
risks and uncertainties.</P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 12pt; MARGIN-BOTTOM: 16px; LINE-HEIGHT: 14pt"
align=justify>During the Company&#146;s two most recent fiscal years, and through May
16, 2008, there were no disagreements between the Company and Rachlin on any
matters of accounting principles or practices, financial statement disclosure,
or auditing scope or procedure, which disagreement, if not resolved to the
satisfaction of Rachlin, would have caused Rachlin to make reference to the
subject matter of the disagreement in connection with its reports.</P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 12pt; MARGIN-BOTTOM: 16px; LINE-HEIGHT: 14pt"
align=justify>During the years ended December 31, 2007 and 2006, and the
subsequent interim period through May 16, 2008, there were no reportable events
(as defined in Regulation S-K Item 304(a)(1)(v)).</P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 12pt; MARGIN-BOTTOM: 16px; LINE-HEIGHT: 14pt"
align=justify>On May 16, 2008, the Company engaged Battelle &amp; Battelle LLP
as its new independent registered public accounting firm to conduct the audit of
the Company&#146;s financial statements as of and for the year ended December 31,
2008. &nbsp;The decision to engage Battelle &amp; Battelle LLP was made and
approved by the Audit Committee of the Company&#146;s Board of Directors.
&nbsp;During the two most recent fiscal years and through May 16, 2008, the
Company has not consulted with Battelle &amp; Battelle LLP regarding (i) the
application of accounting principles to a specified transaction, either
completed or proposed; or the type of audit opinion that might be rendered on
the Company&#146;s financial statements; or (ii) any matter that was either the
subject of a disagreement, as that term is defined in Item 304 (a)(1)(v) of
Regulation S-K. </P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 12pt; MARGIN-BOTTOM: 16px; LINE-HEIGHT: 14pt"
align=justify><B>Item 9.01. &nbsp;Financial Statements and Exhibits</B></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 12pt; MARGIN-BOTTOM: 16px; LINE-HEIGHT: 14pt"
align=justify>(c) &nbsp;Exhibits:</P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">The following
exhibits are furnished as a part of this Current Report on Form 8-K:</P>
<P style="MARGIN: 0px"><BR></P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0>
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<TD width=541></TD></TR>
<TR>
<TD vAlign=bottom width=96>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt"
align=center><B>Exhibit Number</B></P></TD>
<TD vAlign=bottom width=541>
<P
style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt"><B>Description</B></P></TD></TR>
<TR>
<TD vAlign=top width=96>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt"
align=center>16.1</P></TD>
<TD vAlign=top width=541>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">Letter from
Rachlin LLP to the Securities and Exchange Commission, dated May&nbsp;19,
2008.</P></TD></TR>
<TR>
<TD vAlign=top width=96>
<P>&nbsp;</P></TD>
<TD vAlign=top width=541>
<P>&nbsp;</P></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 16px" align=justify><BR></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 16px" align=justify><BR><BR></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt" align=center>2</P>
<P style="MARGIN: 0px"><BR></P>
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<P
style="MARGIN-TOP: 0px; FONT-SIZE: 12pt; MARGIN-BOTTOM: 16px; PAGE-BREAK-BEFORE: always; LINE-HEIGHT: 14pt"
align=justify>SIGNATURES</P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 12pt; MARGIN-BOTTOM: 16px; TEXT-INDENT: 48px; LINE-HEIGHT: 14pt"
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: 12pt; MARGIN-BOTTOM: 16px; LINE-HEIGHT: 14pt"
align=justify>Date: &nbsp;May 19, 2008 </P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 336px; FONT-SIZE: 12pt; MARGIN-BOTTOM: 16px; LINE-HEIGHT: 14pt">ADCARE
HEALTH SYSTEMS, INC.</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 336px; FONT-SIZE: 12pt; MARGIN-BOTTOM: 16px; LINE-HEIGHT: 14pt">By:<U>
/s/Scott Cunningham </U></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 336px; FONT-SIZE: 12pt; MARGIN-BOTTOM: 16px; LINE-HEIGHT: 14pt">Name:
Scott Cunningham</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 336px; FONT-SIZE: 12pt; MARGIN-BOTTOM: 16px; LINE-HEIGHT: 14pt">Title:
&nbsp;Chief Financial Officer</P>
<P style="MARGIN: 0px" align=right><BR><BR></P>
<P style="MARGIN: 0px" align=center><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: 12pt; PAGE-BREAK-BEFORE: always; MARGIN: 0px; LINE-HEIGHT: 14pt"
align=right>Exhibit 16.1</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>May 19,
2008</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Securities and Exchange Commission</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>100F
Street, N.E.</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Washington, DC 20549</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"
align=justify><B>Re:</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"
align=justify><B>AdCare Health Systems, Inc.</B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>We were
previously principal accountants for AdCare Health Systems, Inc. (&#147;AdCare&#148;) and
under the date of March 28, 2008, we reported on the consolidated financial
statements of AdCare and subsidiaries as of and for the years ended December 31,
2007 and 2006. &nbsp;Effective May 16, 2008 we were dismissed. &nbsp;We have
read AdCare&#146;s statements included under Item 4.01 of its Form 8-K dated May 19,
2008, and we agree with such statements.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>Very
Truly yours,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 14px"><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: 16px; LINE-HEIGHT: 13pt">Rachlin
LLP</P>
<H1>&nbsp;</H1>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
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<P style="MARGIN: 0px" align=center><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt" align=center>4</P>
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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:  May 19, 2008
Date
of earliest event reported:  May 16, 2008
AdCare Health Systems, Inc.
(Exact Name of Registrant as specified in its Charter)
Ohio
(State or Other Jurisdiction
of Incorporation)
333-131542
(Commission file Number)
31-1332119
(IRS Employer Identification No.)
5057
Troy Road, Springfield, Ohio  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 4.01.  Changes in Registrant's Certifying
Accountant
On May 16, 2008, the Audit Committee of the Board of Directors of
AdCare Health Systems, Inc. (the "Company") dismissed Rachlin LLP (Rachlin) as
the Company's independent registered public accounting firm.
The audit reports of Rachlin on the consolidated financial
statements of the Company and its subsidiaries as of and for the years ended
December 31, 2007 and 2006 did not contain an adverse opinion or disclaimer of
opinion, and were not qualified or modified as to uncertainty, audit scope or
accounting principles except for an explanatory paragraph related to certain
risks and uncertainties.
During the Company's two most recent fiscal years, and through May
16, 2008, there were no disagreements between the Company and Rachlin on any
matters of accounting principles or practices, financial statement disclosure,
or auditing scope or procedure, which disagreement, if not resolved to the
satisfaction of Rachlin, would have caused Rachlin to make reference to the
subject matter of the disagreement in connection with its reports.
During the years ended December 31, 2007 and 2006, and the
subsequent interim period through May 16, 2008, there were no reportable events
(as defined in Regulation S-K Item 304(a)(1)(v)).
On May 16, 2008, the Company engaged Battelle & Battelle LLP
as its new independent registered public accounting firm to conduct the audit of
the Company's financial statements as of and for the year ended December 31,
2008.  The decision to engage Battelle & Battelle LLP was made and
approved by the Audit Committee of the Company's Board of Directors.
 During the two most recent fiscal years and through May 16, 2008, the
Company has not consulted with Battelle & Battelle LLP regarding (i) the
application of accounting principles to a specified transaction, either
completed or proposed; or the type of audit opinion that might be rendered on
the Company's financial statements; or (ii) any matter that was either the
subject of a disagreement, as that term is defined in Item 304 (a)(1)(v) of
Regulation S-K.
Item 9.01.  Financial Statements and Exhibits
(c)  Exhibits:
The following
exhibits are furnished as a part of this Current Report on Form 8-K:
Exhibit Number
Description
16.1
Letter from
Rachlin LLP to the Securities and Exchange Commission, dated May 19,
2008.
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:  May 19, 2008
ADCARE
HEALTH SYSTEMS, INC.
By:
/s/Scott Cunningham
Name:
Scott Cunningham
Title:
 Chief Financial Officer
3
Exhibit 16.1
May 19,
2008
Securities and Exchange Commission
100F
Street, N.E.
Washington, DC 20549
Re:
AdCare Health Systems, Inc.
We were
previously principal accountants for AdCare Health Systems, Inc. ("AdCare") and
under the date of March 28, 2008, we reported on the consolidated financial
statements of AdCare and subsidiaries as of and for the years ended December 31,
2007 and 2006.  Effective May 16, 2008 we were dismissed.  We have
read AdCare's statements included under Item 4.01 of its Form 8-K dated May 19,
2008, and we agree with such statements.
Very
Truly yours,
Rachlin
LLP
4