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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;July 3, 2008</P>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt" align=center>Date
of earliest event reported: &nbsp;July 1, 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>
<TR style="DISPLAY: none; FONT-SIZE: 0px" height=0>
<TD width=319></TD>
<TD width=319></TD></TR>
<TR>
<TD vAlign=top width=319>
<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>
<TD width=638></TD></TR>
<TR>
<TD vAlign=top width=638>
<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: 10.5pt; MARGIN-BOTTOM: 14px; PAGE-BREAK-BEFORE: always; LINE-HEIGHT: 12.5pt"
align=justify><B>Item 8.01. &nbsp;Other Information</B></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; TEXT-INDENT: 48px; LINE-HEIGHT: 12.5pt"
align=justify>&nbsp;On July 1, 2008, AdCare Health Systems, Inc. issued a press
release announcing the refinance of three assisted living properties. &nbsp;A
copy of this press release is furnished as Exhibit 99.1 hereto.&nbsp; Pursuant
to the rules and regulations of the Securities and Exchange Commission, the
information in this Current Report on Form 8-K, including the attached exhibit
and the information set forth therein, shall not be deemed &#147;filed&#148; for purposes
of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed to
be incorporated by reference in any filing under the Securities Act of 1933 or
the Securities Exchange Act of 1934, regardless of any general incorporation
language 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>(d) &nbsp;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 July 1, 2008</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>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; LINE-HEIGHT: 12.5pt"
align=justify>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;July 3, 2008 </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>
/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-TOP: 0px; MARGIN-BOTTOM: 14px"><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 99.1</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">Press Release</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt"
align=center><B>AdCare Health Systems, Inc. Announces the Refinancing of Three
</B></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt"
align=center><B>Assisted Living Properties in Ohio </B></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt"
align=center><B></B>&nbsp;</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">SPRINGFIELD, Ohio,
July 1, 2008 /PRNewswire-FirstCall/ AdCare Health Systems, Inc. (Amex: ADK), an
Ohio based long term care, home care and management company, today announced the
refinancing of three assisted living properties in Ohio. &nbsp;&nbsp;&nbsp;</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">Community&#146;s Hearth
&amp; Home, LTD, owns two twenty unit assisted living properties located in
Springfield, Ohio and Hearth &amp; Home of Urbana, LLC, owns one thirty-two unit
assisted living property located in Urbana, Ohio. &nbsp;Both entities are
limited liability companies with 50% owned by AdCare and 50% owned by
Community-Mercy Health Partners. &nbsp;AdCare was the developer and is the
manager of the three properties.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">Red Mortgage Capital,
Inc., an FHA/MAP lender, processed and funded the total
&nbsp;&nbsp;&nbsp;&nbsp;$4,006,500 232/223(f) refinancing at an annual interest
rate of 6.65% for a period of 35 years. &nbsp;The loan was closed on June 26,
2008 and is also subject to an annual insurance cost of one half per cent.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">David A. Tenwick,
Chairman of AdCare, stated, &#147;We have been in the process of refinancing most of
our real estate holdings and announcements will be made as additional properties
are refinanced. &nbsp;The longer term and non-recourse re-financings should help
with our equity and acquisition-line funding.&#148;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">About AdCare Health
Systems, Inc.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">AdCare Health
Systems, Inc. (Amex: ADK) develops, owns and manages assisted living facilities,
nursing homes and retirement communities and provides home health care services.
&nbsp;Prior to becoming a publicly traded company in November of 2006, AdCare
operated as a private company for 18 years. &nbsp;AdCare&#146;s 920 employees provide
high-quality care for patients and residents residing in the 15 facilities that
they manage, seven of which are assisted living facilities, six skilled nursing
centers and two independent senior living communities. &nbsp;The Company has
ownership interests in seven of those facilities. &nbsp;In the ever expanding
marketplace of long term care, AdCare&#146;s mission is to provide quality healthcare
services to the elderly.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="FONT-SIZE: 12pt; PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: 14pt; BORDER-BOTTOM: #000000 2px solid">Safe
Harbor Statement</P>
<P style="MARGIN: 0px"><BR></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. &nbsp;Such forward-looking
statements reflect management&#146;s beliefs and assumptions and are based on
information currently available to management. &nbsp;The forward-looking
statements involve known and &nbsp;unknown &nbsp;risks, results, performance or
achievements of the Company to differ materially from those expressed or implied
in such statements. &nbsp;Such factors are identified in the public filings made
by the Company with the Securities and Exchange Commission and include the
Company&#146;s ability to secure lines of credit and/or an acquisition credit
facility, find suitable acquisition properties at </P>
<P style="MARGIN: 0px"><BR><BR></P>
<P style="MARGIN: 0px" align=center><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"
align=right>Exhibit 99.1</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">favorable terms,
changes in the health care industry because of political and economic
influences, changes in regulations governing the industry, changes in
reimbursement levels including those under the Medicare and Medicaid programs
and changes in the competitive marketplace. &nbsp;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; PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: 14pt; BORDER-BOTTOM: #000000 2px solid">Contact:</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">April Spittle</P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">Manager of Corporate
Communications &nbsp;</P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">1-703-893-0021
&nbsp;ext. 108</P>
<P
style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">aspittle@galencc.com</P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 12pt; MARGIN-BOTTOM: 16px; LINE-HEIGHT: 14pt">www.adcarehealth.com</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: 16px"><BR><BR></P>
<P style="MARGIN: 0px" align=center><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:  July 3, 2008
Date
of earliest event reported:  July 1, 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 8.01.  Other Information
On July 1, 2008, AdCare Health Systems, Inc. issued a press
release announcing the refinance of three assisted living properties.  A
copy of this press release is furnished as Exhibit 99.1 hereto.  Pursuant
to the rules and regulations of the Securities and Exchange Commission, the
information in this Current Report on Form 8-K, including the attached exhibit
and the information set forth therein, shall not be deemed "filed" for purposes
of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed to
be incorporated by reference in any filing under the Securities Act of 1933 or
the Securities Exchange Act of 1934, regardless of any general incorporation
language in such filing.
Item 9.01.  Financial Statements and Exhibits.
(d)  Exhibits
Exhibit Number
Description of Exhibit
99.1
Press Release dated July 1, 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:  July 3, 2008
ADCARE
HEALTH SYSTEMS, INC.
By:
/s/Scott Cunningham
Name:
Scott Cunningham
Title:
 Chief Financial Officer
3
Exhibit 99.1
Press Release
AdCare Health Systems, Inc. Announces the Refinancing of Three
Assisted Living Properties in Ohio
SPRINGFIELD, Ohio,
July 1, 2008 /PRNewswire-FirstCall/ AdCare Health Systems, Inc. (Amex: ADK), an
Ohio based long term care, home care and management company, today announced the
refinancing of three assisted living properties in Ohio.
Community's Hearth
& Home, LTD, owns two twenty unit assisted living properties located in
Springfield, Ohio and Hearth & Home of Urbana, LLC, owns one thirty-two unit
assisted living property located in Urbana, Ohio.  Both entities are
limited liability companies with 50% owned by AdCare and 50% owned by
Community-Mercy Health Partners.  AdCare was the developer and is the
manager of the three properties.
Red Mortgage Capital,
Inc., an FHA/MAP lender, processed and funded the total
    $4,006,500 232/223(f) refinancing at an annual interest
rate of 6.65% for a period of 35 years.  The loan was closed on June 26,
2008 and is also subject to an annual insurance cost of one half per cent.
David A. Tenwick,
Chairman of AdCare, stated, "We have been in the process of refinancing most of
our real estate holdings and announcements will be made as additional properties
are refinanced.  The longer term and non-recourse re-financings should help
with our equity and acquisition-line funding."
About AdCare Health
Systems, Inc.
AdCare Health
Systems, Inc. (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 920 employees provide
high-quality care for patients and residents residing in the 15 facilities that
they manage, seven of which are assisted living facilities, six skilled nursing
centers and two independent senior living communities.  The Company has
ownership interests in seven of those facilities.  In the ever expanding
marketplace of long term care, AdCare's mission is to provide quality healthcare
services to the elderly.
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
4
Exhibit 99.1
favorable terms,
changes in the health care industry because of political and economic
influences, changes in regulations governing the industry, changes in
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.
Contact:
April Spittle
Manager of Corporate
Communications
1-703-893-0021
 ext. 108
aspittle@galencc.com
www.adcarehealth.com
5