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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;January 4, 2010</P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt" align=center>Date of
Earliest Event Reported: &nbsp;December 30, 2009</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;] &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;] 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>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 14px" 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 5.02 Departure of Directors or Certain Officers; Election
of Directors; Appointment of Certain Officers; Compensatory Arrangements of
Certain Officers</B></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt"
align=justify>On December 23, 2009, the Board of Directors of AdCare Health
Systems, Inc. (the &#147;Company&#148;) authorized the appointment of Joshua J. McClellan
and Boyd P. Gentry to serve as Directors beginning January 1, 2010, until the
next annual election of Directors by shareholders of the Company. &nbsp;Mr.
McClellan and Mr. Gentry were each appointed to fill an existing vacancy on the
Board of Directors. &nbsp;Neither Mr. McClellan nor Mr. Gentry have been
appointed to any committees of the Board at this time. &nbsp;Neither Mr.
McClellan nor Mr. Gentry have other public company directorships.</P>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt" align=justify>Mr.
Gentry was employed by Mariner Health Care, Inc., a former NYSE publicly held
long-term health care provider with $2B in annual revenue, from 1995 to 2007,
and promoted to CFO subsequent to its 2004 going private transaction sponsored
by National Senior Care. &nbsp;He transitioned to an ongoing consulting role for
Mariner in September, 2007 when he was recruited to Millennium Pharmacy Systems,
Inc. as CFO. &nbsp;He remained with Millennium until 2009. &nbsp;From 1982 until
1995, Mr. Gentry was employed with Bank of America and it predecessors with
various financial responsibilities as Senior Vice President. &nbsp;Mr. Gentry
received his BA in Economics from Knox College in Galesburg, Illinois and his
MBA in Finance and Accounting from Southern Methodist University in Dallas,
Texas.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt"
align=justify>Mr. McClellan spent from 1996 until 2006 as Founder and President
of McClellan Health Systems, Inc., located in northwest Ohio. &nbsp;Through
acquisitions and development, he grew his company from a single, skilled nursing
facility to a large regional healthcare provider for over 650 residents which he
sold in June, 2006 for $53M. &nbsp;He is now developing and has under
construction a large rehab facility which when completed will have the capacity
to provide rehabilitation and other medical services to approximately 100
residents. &nbsp;Mr. McClellan received his BS from Ohio State University and
his MBA from the University of Findlay in Findlay, Ohio.</P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt"
align=justify>There is no arrangement or understanding between Mr. McClellan or
Mr. Gentry and any other person pursuant to which Mr. McClellan or Mr. Gentry
was elected as a director of the Company. &nbsp;The Company is not aware of any
transactions involving Mr. McClellan or Mr. Gentry that are reportable under
Item 404(a) of Regulation S-K. &nbsp;</P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt"
align=justify>Mr. Gentry and Mr. McClellan will receive compensation of $2,000
per month and $1,000 per Board meeting.</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 December 30, 2009, the Company issued a press release
announcing the election of Mr. McClellan and Mr. Gentry to the Board of
Directors, as described under Item 5.02 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 December 30,
2009</P></TD></TR></TABLE>
<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="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; 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;January 4, 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-TOP: 0px; MARGIN-BOTTOM: 13px" align=center><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="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; PAGE-BREAK-BEFORE: always; LINE-HEIGHT: 12.5pt"
align=center><B>EXHIBIT INDEX</B></P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0>
<TR style="DISPLAY: none; FONT-SIZE: 0px" height=0>
<TD width=84></TD>
<TD width=18></TD>
<TD width=298></TD>
<TD width=17></TD>
<TD width=301></TD></TR>
<TR>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top width=84>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 10.5pt"><B>Exhibit
No.</B></P></TD>
<TD vAlign=top width=18>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 10.5pt"
align=center><B></B>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width=617
colSpan=3>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 10.5pt"
align=center><B>Description</B></P></TD></TR>
<TR>
<TD vAlign=top width=84>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px">&nbsp;</P></TD>
<TD vAlign=top width=18>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px">&nbsp;</P></TD>
<TD vAlign=top width=298>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px">&nbsp;</P></TD>
<TD vAlign=top width=17>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px">&nbsp;</P></TD>
<TD vAlign=top width=301>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px">&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=84>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt"
align=center>99.1</P></TD>
<TD vAlign=top width=18>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px">&nbsp;</P></TD>
<TD vAlign=top width=617 colSpan=3>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt">AdCare
Health Systems, Inc. Press Release, dated December 30,
2009.</P></TD></TR></TABLE>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 12pt; MARGIN-BOTTOM: 16px; LINE-HEIGHT: 10.5pt">&nbsp;</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>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="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt"><B>AdCare Health
Systems Names Boyd Gentry and Josh McClellan to its Board</B></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">SPRINGFIELD, Ohio,
December 30, 2009/PRNewswire-FirstCall/ AdCare Health Systems, Inc. (NYSE AMEX;
ADK), today announced the appointment of Boyd P. Gentry and Joshua J. McClellan
to its Board of Directors for the coming year.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">David A. Tenwick,
Chairman of the Board, stated that &#147;Boyd Gentry and Josh McClellan are seasoned
long-term health care executives, both with significant health care operating
and financial experience. &nbsp;Tenwick continued, &#147;with our plans to expand our
operations which include potential acquisitions of assisted living facilities
and nursing homes as well as new management contracts, it is important to also
add talent and strength to our board to keep up with the growth. &nbsp;With the
addition of Boyd and Josh as independent directors, I believe the board will be
keeping pace with the expansion plans of AdCare.&#148;</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">Mr. Gentry was
employed by Mariner Health Care, Inc., a former NYSE publicly held long-term
health care provider with $2B in annual revenue, from 1995 to 2007, and promoted
to CFO subsequent to its 2004 going private transaction sponsored by National
Senior Care. &nbsp;He transitioned to an ongoing consulting role for Mariner in
September, 2007 when he was recruited to Millennium Pharmacy Systems, Inc. as
CFO. &nbsp;He remained with Millennium until 2009. &nbsp;From 1982 until 1995,
Mr. Gentry was employed with Bank of America and it predecessors with various
financial responsibilities as Senior Vice President. &nbsp;Mr. Gentry received
his BA in Economics from Knox College in Galesburg, Illinois and his MBA in
Finance and Accounting from Southern Methodist University in Dallas, Texas.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">Mr. McClellan spent
from 1996 until 2006 as Founder and President of McClellan Health Systems, Inc.
&nbsp;Through acquisitions and development, he grew his company from a single,
skilled nursing facility to a large regional healthcare provider for over 650
residents which he sold in June, 2006 for $53M. &nbsp;He is now developing and
has under construction a large rehab facility which when completed will have the
capacity to provide rehabilitation and other medical services to approximately
100 residents. &nbsp;Mr. McClellan received his BS from Ohio State University
and his MBA from the University of Findlay in Findlay, Ohio.</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. (NYSE 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 900
employees provide management, development and accounting/financial services to
20 long term care facilities, nine of which are assisted living facilities, ten
skilled nursing centers and one independent senior living community. &nbsp;The
Company has ownership interests in eight 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 unknown 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
</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>5</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">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 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">David A. Tenwick</P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">Chairman of the
Board</P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">1-740-549-0400 </P>
<P
style="FONT-SIZE: 12pt; MARGIN: 0px; COLOR: #0000ff; LINE-HEIGHT: 14pt"><U>dat@adcarehealth.com</U><FONT
style="COLOR: #000000"></FONT></P>
<P
style="FONT-SIZE: 12pt; MARGIN: 0px; COLOR: #0000ff; LINE-HEIGHT: 14pt"><U>www.adcarehealth.com</U><FONT
style="COLOR: #000000"></FONT></P>
<P style="MARGIN: 0px">&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><BR></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt" align=center>6</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:  January 4, 2010
Date of
Earliest Event Reported:  December 30, 2009
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)).
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Item 5.02 Departure of Directors or Certain Officers; Election
of Directors; Appointment of Certain Officers; Compensatory Arrangements of
Certain Officers
On December 23, 2009, the Board of Directors of AdCare Health
Systems, Inc. (the "Company") authorized the appointment of Joshua J. McClellan
and Boyd P. Gentry to serve as Directors beginning January 1, 2010, until the
next annual election of Directors by shareholders of the Company.  Mr.
McClellan and Mr. Gentry were each appointed to fill an existing vacancy on the
Board of Directors.  Neither Mr. McClellan nor Mr. Gentry have been
appointed to any committees of the Board at this time.  Neither Mr.
McClellan nor Mr. Gentry have other public company directorships.
Mr.
Gentry was employed by Mariner Health Care, Inc., a former NYSE publicly held
long-term health care provider with $2B in annual revenue, from 1995 to 2007,
and promoted to CFO subsequent to its 2004 going private transaction sponsored
by National Senior Care.  He transitioned to an ongoing consulting role for
Mariner in September, 2007 when he was recruited to Millennium Pharmacy Systems,
Inc. as CFO.  He remained with Millennium until 2009.  From 1982 until
1995, Mr. Gentry was employed with Bank of America and it predecessors with
various financial responsibilities as Senior Vice President.  Mr. Gentry
received his BA in Economics from Knox College in Galesburg, Illinois and his
MBA in Finance and Accounting from Southern Methodist University in Dallas,
Texas.
Mr. McClellan spent from 1996 until 2006 as Founder and President
of McClellan Health Systems, Inc., located in northwest Ohio.  Through
acquisitions and development, he grew his company from a single, skilled nursing
facility to a large regional healthcare provider for over 650 residents which he
sold in June, 2006 for $53M.  He is now developing and has under
construction a large rehab facility which when completed will have the capacity
to provide rehabilitation and other medical services to approximately 100
residents.  Mr. McClellan received his BS from Ohio State University and
his MBA from the University of Findlay in Findlay, Ohio.
There is no arrangement or understanding between Mr. McClellan or
Mr. Gentry and any other person pursuant to which Mr. McClellan or Mr. Gentry
was elected as a director of the Company.  The Company is not aware of any
transactions involving Mr. McClellan or Mr. Gentry that are reportable under
Item 404(a) of Regulation S-K.
Mr. Gentry and Mr. McClellan will receive compensation of $2,000
per month and $1,000 per Board meeting.
Item 8.01 Other Matters
On December 30, 2009, the Company issued a press release
announcing the election of Mr. McClellan and Mr. Gentry to the Board of
Directors, as described under Item 5.02 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 December 30,
2009
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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:  January 4, 2010
ADCARE
HEALTH SYSTEMS, INC.
By:
/s/ Scott Cunningham
Name:
Scott Cunningham
Title:
 Chief Financial Officer
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EXHIBIT INDEX
Exhibit
No.
Description
99.1
AdCare
Health Systems, Inc. Press Release, dated December 30,
2009.
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Exhibit 99.1
AdCare Health
Systems Names Boyd Gentry and Josh McClellan to its Board
SPRINGFIELD, Ohio,
December 30, 2009/PRNewswire-FirstCall/ AdCare Health Systems, Inc. (NYSE AMEX;
ADK), today announced the appointment of Boyd P. Gentry and Joshua J. McClellan
to its Board of Directors for the coming year.
David A. Tenwick,
Chairman of the Board, stated that "Boyd Gentry and Josh McClellan are seasoned
long-term health care executives, both with significant health care operating
and financial experience.  Tenwick continued, "with our plans to expand our
operations which include potential acquisitions of assisted living facilities
and nursing homes as well as new management contracts, it is important to also
add talent and strength to our board to keep up with the growth.  With the
addition of Boyd and Josh as independent directors, I believe the board will be
keeping pace with the expansion plans of AdCare."
Mr. Gentry was
employed by Mariner Health Care, Inc., a former NYSE publicly held long-term
health care provider with $2B in annual revenue, from 1995 to 2007, and promoted
to CFO subsequent to its 2004 going private transaction sponsored by National
Senior Care.  He transitioned to an ongoing consulting role for Mariner in
September, 2007 when he was recruited to Millennium Pharmacy Systems, Inc. as
CFO.  He remained with Millennium until 2009.  From 1982 until 1995,
Mr. Gentry was employed with Bank of America and it predecessors with various
financial responsibilities as Senior Vice President.  Mr. Gentry received
his BA in Economics from Knox College in Galesburg, Illinois and his MBA in
Finance and Accounting from Southern Methodist University in Dallas, Texas.
Mr. McClellan spent
from 1996 until 2006 as Founder and President of McClellan Health Systems, Inc.
 Through acquisitions and development, he grew his company from a single,
skilled nursing facility to a large regional healthcare provider for over 650
residents which he sold in June, 2006 for $53M.  He is now developing and
has under construction a large rehab facility which when completed will have the
capacity to provide rehabilitation and other medical services to approximately
100 residents.  Mr. McClellan received his BS from Ohio State University
and his MBA from the University of Findlay in Findlay, Ohio.
About AdCare Health
Systems, Inc.
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 900
employees provide management, development and accounting/financial services to
20 long term care facilities, nine of which are assisted living facilities, ten
skilled nursing centers and one independent senior living community.  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.
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
5
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 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:
David A. Tenwick
Chairman of the
Board
1-740-549-0400
dat@adcarehealth.com
www.adcarehealth.com
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