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<HTML><HEAD><TITLE>SECURITIES AND EXCHANGE COMMISSION</TITLE>
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<BODY
style="FONT-SIZE: 10pt; COLOR: #000000; LINE-HEIGHT: 12pt; FONT-FAMILY: Times New Roman">
<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: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt"
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: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt"
align=center><B>CURRENT REPORT</B></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt"
align=center><B>Pursuant to Section 13 or 15(d) of the Securities Exchange Act
of 1934</B></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;September 7, 2010</P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt" align=center>Date of
Earliest Event Reported: &nbsp;September 2, 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=309></TD>
<TD width=218></TD>
<TD width=248></TD></TR>
<TR>
<TD vAlign=bottom width=309>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt"
align=center><B>Ohio</B></P></TD>
<TD vAlign=top width=218>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt"
align=center><B>333-131542</B></P></TD>
<TD vAlign=bottom width=248>
<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=309>
<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; LINE-HEIGHT: 12.5pt"
align=center><I>incorporation or organization)</I></P></TD>
<TD vAlign=top width=218>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt"
align=center><I>(Commission File Number)</I></P></TD>
<TD vAlign=top width=248>
<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=528 colSpan=2>
<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=248>
<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=528 colSpan=2>
<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=248>
<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="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 Matters.</B></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt"
align=justify>On Thursday, September 2, 2010, AdCare Health Systems, Inc. (the
&#147;Company&#148;) issued a press release announcing the close of three leases in
Georgia. &nbsp;The lease of these facilities has been previously reported under
item 1.01 of Form 8-K filed on August 5, 2010, and amended on August 9, 2010.
&nbsp;Upon closing of the lease transaction, AdCare provided the lessor $195,000
for the first month&#146;s lease payment and a portion of the security deposit, with
the balance of $337,000 to be paid over five months comprising the balance of
the security deposit and an amount equal to two months lease payments. &nbsp;A
copy of this press release is furnished as Exhibit 99.1 hereto.&nbsp; </P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt"
align=justify>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>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 September 1,
2010</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;September 7, 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: 8px" 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; MARGIN-BOTTOM: 9px; PAGE-BREAK-BEFORE: always"
align=center><IMG height=47 alt=[f8kitem89710r002.gif]
src="f8kitem89710r002.gif" width=151 align=middle></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 36px; FONT-SIZE: 14pt; MARGIN-BOTTOM: 21px; LINE-HEIGHT: 16pt"
align=center><BR><B>AdCare Closes Lease of Three Additional Nursing Homes in
Georgia, Adding $15.5 Million in Annualized Revenue</B></P>
<P
style="MARGIN-TOP: 8px; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0px; LINE-HEIGHT: 14pt"><B>SPRINGFIELD,
Ohio, September 1, 2010 -</B> AdCare Health Systems, Inc. (NYSE AMEX: ADK), a
recognized innovator in senior living and health care facility management, has
closed the lease of three nursing homes according to the previously announced
agreement to lease five additional nursing homes in Georgia.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">The three nursing
homes, which have been leased under a 10-year term, have an aggregate of 280
beds that generate approximately $15.5 million in annualized revenue. With the
addition of these three facilities and other transactions closed earlier in the
year, AdCare&#146;s estimated annualized revenue run-rate now exceeds $79 million, as
compared to $26.7 million for the year ended 2009.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">Upon closing of the
lease transaction, AdCare provided the lessor $195,000 for the first month&#146;s
lease payment and a portion of the security deposit, with the balance of
$337,000 to be paid over five months comprising the balance of the security
deposit and an amount equal to two months lease payments.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">&#147;This transaction is
the third we&#146;ve closed since we began our M&amp;A campaign at the end of last
year,&#148; said Chris Brogdon, AdCare&#146;s vice chairman and chief acquisitions
officer. &#147;We expect all of these facilities to be significant cash generators
for AdCare, especially as they come under our highly capable management and
benefit from our larger economy of scale.&#148;</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">&#147;As we work toward
closing the currently pending transactions we&#146;ve announced, including the lease
of the remaining two nursing homes in Georgia, additional opportunities continue
to emerge in the southern region of the U.S.,&#148; said Brogdon. &#147;We are working to
establish the terms and necessary financings for several new potential
acquisitions in our pipeline of equal or greater potential.&#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. </P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt"><B>About AdCare
Health Systems<BR></B>AdCare Health Systems, Inc. (AMEX:ADK) is a recognized
innovator in senior living and health care facility management. AdCare develops,
owns and manages assisted living facilities, nursing homes and retirement
communities, as well as provides home health care services. Since its inception
in 1988, AdCare's mission has been to provide the highest quality of healthcare
services to the elderly. For more information about AdCare, visit
www.adcarehealth.com.</P>
<P
style="MARGIN-TOP: 6px; FONT-SIZE: 12pt; MARGIN-BOTTOM: 6px; LINE-HEIGHT: 14pt"><B>Important
Cautions Regarding Forward-Looking Statements</B> <BR>Statements contained in
this press release that are not historical facts may be forward-looking
statements within the meaning of federal law. Such statement can be identified
by the use of forward-looking terminology, such as "believes," "expects,"
"plans," "intends," "anticipates" and variations of such words or similar
expressions, but their absence does not mean that the statement is not
forward-looking. Statements in this announcement that are forward-looking
include, but are not limited to, statements that the company expects all of
these new facilities to be significant cash generators for AdCare. &nbsp;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 </P>
<P style="MARGIN: 6px"><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="MARGIN-TOP: 6px; FONT-SIZE: 12pt; MARGIN-BOTTOM: 6px; PAGE-BREAK-BEFORE: always; LINE-HEIGHT: 14pt">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 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="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, Vice
Chairman &amp; CAO</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:
info@adcarehealth.com</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">Ron Both or Geoffrey
Plank</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: 0px">&nbsp;</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></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:  September 7, 2010
Date of
Earliest Event Reported:  September 2, 2010
AdCare Health Systems, Inc.
(Exact Name of Registrant as specified in its Charter)
Ohio
333-131542
31-1332119
(State or other jurisdiction of
incorporation or organization)
(Commission File Number)
(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 8.01.  Other Matters.
On Thursday, September 2, 2010, AdCare Health Systems, Inc. (the
"Company") issued a press release announcing the close of three leases in
Georgia.  The lease of these facilities has been previously reported under
item 1.01 of Form 8-K filed on August 5, 2010, and amended on August 9, 2010.
 Upon closing of the lease transaction, AdCare provided the lessor $195,000
for the first month's lease payment and a portion of the security deposit, with
the balance of $337,000 to be paid over five months comprising the balance of
the security deposit and an amount equal to two months lease payments.  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.
Exhibits
Exhibit Number
Description of Exhibit
99.1
Press Release dated September 1,
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:  September 7, 2010
ADCARE
HEALTH SYSTEMS, INC.
By:
/s/ Scott Cunningham
Name:
Scott Cunningham
Title:
 Chief Financial Officer
3
AdCare Closes Lease of Three Additional Nursing Homes in
Georgia, Adding $15.5 Million in Annualized Revenue
SPRINGFIELD,
Ohio, September 1, 2010 -
AdCare Health Systems, Inc. (NYSE AMEX: ADK), a
recognized innovator in senior living and health care facility management, has
closed the lease of three nursing homes according to the previously announced
agreement to lease five additional nursing homes in Georgia.
The three nursing
homes, which have been leased under a 10-year term, have an aggregate of 280
beds that generate approximately $15.5 million in annualized revenue. With the
addition of these three facilities and other transactions closed earlier in the
year, AdCare's estimated annualized revenue run-rate now exceeds $79 million, as
compared to $26.7 million for the year ended 2009.
Upon closing of the
lease transaction, AdCare provided the lessor $195,000 for the first month's
lease payment and a portion of the security deposit, with the balance of
$337,000 to be paid over five months comprising the balance of the security
deposit and an amount equal to two months lease payments.
"This transaction is
the third we've closed since we began our M&A campaign at the end of last
year," said Chris Brogdon, AdCare's vice chairman and chief acquisitions
officer. "We expect all of these facilities to be significant cash generators
for AdCare, especially as they come under our highly capable management and
benefit from our larger economy of scale."
"As we work toward
closing the currently pending transactions we've announced, including the lease
of the remaining two nursing homes in Georgia, additional opportunities continue
to emerge in the southern region of the U.S.," said Brogdon. "We are working to
establish the terms and necessary financings for several new potential
acquisitions in our pipeline of equal or greater potential."
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.
About AdCare
Health Systems
AdCare Health Systems, Inc. (AMEX:ADK) is a recognized
innovator in senior living and health care facility management. AdCare develops,
owns and manages assisted living facilities, nursing homes and retirement
communities, as well as provides home health care services. Since its inception
in 1988, AdCare's mission has been to provide the highest quality of healthcare
services to the elderly. For more information about AdCare, visit
www.adcarehealth.com.
Important
Cautions Regarding Forward-Looking Statements
Statements contained in
this press release that are not historical facts may be forward-looking
statements within the meaning of federal law. Such statement can be identified
by the use of forward-looking terminology, such as "believes," "expects,"
"plans," "intends," "anticipates" and variations of such words or similar
expressions, but their absence does not mean that the statement is not
forward-looking. Statements in this announcement that are forward-looking
include, but are not limited to, statements that the company expects all of
these new facilities to be significant cash generators for AdCare.  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
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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 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 & CAO
AdCare Health
Systems, Inc.
Tel (937)
964-8974
Email:
info@adcarehealth.com
Investor
Relations
Ron Both or Geoffrey
Plank
Liolios Group,
Inc.
Tel (949)
574-3860
Email:
info@liolios.com
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