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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;March 11, 2010</P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt" align=center>Date of
Earliest Event Reported: &nbsp;March 7, 2010</P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="FONT-SIZE: 18.5pt; MARGIN: 0px; LINE-HEIGHT: 20.5pt"
align=center><B>AdCare Health Systems, Inc.</B></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt"
align=center><I>(Exact Name of Registrant as specified in its Charter)</I></P>
<P style="MARGIN: 0px" align=center><BR></P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 align=center>
<TR style="DISPLAY: none; FONT-SIZE: 0px" height=0>
<TD width=400></TD>
<TD width=357></TD></TR>
<TR>
<TD vAlign=bottom width=400>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt"
align=center><B>Ohio</B></P></TD>
<TD vAlign=bottom width=357>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt"
align=center><B>31-1332119</B></P></TD></TR>
<TR>
<TD vAlign=top width=400>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt"
align=center><I>(State or other jurisdiction of</I></P>
<P
style="FONT-SIZE: 10.5pt; MARGIN: 0px; TEXT-INDENT: 87px; LINE-HEIGHT: 12.5pt"><I>incorporation
or organization)</I></P></TD>
<TD vAlign=top width=357>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt"
align=center><I>(I.R.S. Employer Identification No.)</I></P></TD></TR>
<TR>
<TD vAlign=bottom width=400>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt"
align=center><B>5057 Troy Rd, Springfield, OH</B></P></TD>
<TD vAlign=bottom width=357>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt"
align=center><B>45502-9032</B></P></TD></TR>
<TR>
<TD vAlign=top width=400>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt"
align=center><I>(Address of principal executive offices)</I></P></TD>
<TD vAlign=top width=357>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt"
align=center><I>(Zip Code)</I></P></TD></TR></TABLE>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt"
align=center><B>Registrant&#146;s Telephone Number, Including Area Code</B></P>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt"
align=center><B>(937) 964-8974</B></P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt"
align=justify>Check the appropriate box below if the form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of
the following provisions (See General Instruction A2. below):</P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt"
align=justify>[ &nbsp;] Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425)</P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt"
align=justify>[ &nbsp;] Soliciting material pursuant to Rule 14a-12 under the
Exchange Act (17 CFR 240.14a-12)</P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt"
align=justify>[ &nbsp;] Pre-commencement communications pursuant to Rule
14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)</P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt"
align=justify>[ &nbsp;] Pre-commencement communications pursuant to Rule
13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c)).</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 16px" align=justify><BR><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt" align=center>1</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; PAGE-BREAK-BEFORE: always; LINE-HEIGHT: 12.5pt"
align=justify><B>Item 1.01. &nbsp;Entry into a Material Definitive
Agreement.</B></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt"
align=justify>On March 7, 2010, Coosa Nursing ADK, LLC, a yet to be formed
wholly owned subsidiary of AdCare Health Systems, Inc. (the &#147;Company&#148;) entered a
Purchase Agreement with Coosa Valley Health Care Inc, an Alabama corporation, to
acquire the assets of Coosa Valley Health Care, a 124 bed skilled nursing
facility located in Gadsden, Alabama. &nbsp;The purchase price is $8,700,000
with an anticipated closing date of June 1, 2010. &nbsp;The Company paid
$150,000 upon signing the purchase agreement as earnest money. &nbsp;</P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt"
align=justify>On March 7, 2010, Attalla Nursing ADK, LLC, a yet to be formed
wholly owned subsidiary of AdCare Health Systems, Inc. (the &#147;Company&#148;) entered a
Purchase Agreement with Attalla Health Care Inc., an Alabama corporation, to
acquire the assets of Attalla Health Care, a 182 bed skilled nursing facility
located in Attalla, Alabama. &nbsp;The purchase price is $9,800,000 with an
anticipated closing date of June 1, 2010. &nbsp;The Company paid $150,000 upon
signing the purchase agreement as earnest money. &nbsp;</P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt"
align=justify>Coosa Valley Health Care Inc. and Attalla Health Care Inc. are
owned by the same individuals.</P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt"
align=justify>If the Company terminates the purchase agreement(s) because of
seller&#146;s failure to satisfy certain conditions of the purchase agreement(s), the
earnest money will be returned to the Company. &nbsp;Conversely, if the Company
fails to complete the purchase for reasons other than the defined conditions
within the purchase agreement(s), then the seller will retain the earnest money.
&nbsp;Upon closing of the purchase, the earnest money will be applied against
the purchase price.</P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt"
align=justify><B>Item 8.01 Other Matters</B></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt"
align=justify>On March 10, 2009, the Company issued a press release announcing
their entry into the purchase agreements described under Item 1.01 above.
&nbsp;A copy of the press release is attached as Exhibit 99.1 to this Form
8-K.</P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt"
align=justify>The information in this Item 8.01 and Exhibit 99.1 is being
furnished and shall not be deemed &#147;filed&#148; for purposes of Section 18 of the
Securities and Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;) or
otherwise subject to the liabilities of that section, nor shall it be deemed
incorporated by reference in any filing under the Securities Act of 1933, as
amended, or the Exchange Act, except as shall be expressly set forth in such
filing.</P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt"
align=justify><B>Item 9.01. &nbsp;Financial Statements and Exhibits.</B></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; TEXT-INDENT: 48px; LINE-HEIGHT: 12.5pt"
align=justify>Exhibits</P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0>
<TR style="DISPLAY: none; FONT-SIZE: 0px" height=0>
<TD width=127></TD>
<TD width=511></TD></TR>
<TR>
<TD vAlign=top width=127>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt"
align=justify><U>Exhibit Number</U></P></TD>
<TD vAlign=top width=511>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt"
align=justify><U>Description of Exhibit</U></P></TD></TR>
<TR>
<TD vAlign=top width=127>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt"
align=justify>99.1</P></TD>
<TD vAlign=top width=511>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt"
align=justify>Press Release dated March 11, 2010</P></TD></TR></TABLE>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt"
align=justify>&nbsp;&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 14px" align=justify><BR></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 16px" align=center><BR><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt" align=center>2</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px; LINE-HEIGHT: 12.5pt"
align=center>SIGNATURES</P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; TEXT-INDENT: 48px; LINE-HEIGHT: 12.5pt"
align=justify>Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereto duly authorized.</P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt"
align=justify>Date: &nbsp;March 11, 2010</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 336px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt">ADCARE
HEALTH SYSTEMS, INC.</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 336px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt">By:<U>
&nbsp;/s/ Scott Cunningham</U></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 336px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt">Name:
Scott Cunningham</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 336px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt">Title:
&nbsp;Chief Financial Officer</P>
<P style="MARGIN: 0px" align=right><BR><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt" align=center>3</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="FONT-SIZE: 10.5pt; PAGE-BREAK-BEFORE: always; MARGIN: 0px; LINE-HEIGHT: 17.75pt"
align=right>Exhibit 99.1</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 20pt"><B>FOR IMMEDIATE
RELEASE</B></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 36px; FONT-SIZE: 16pt; MARGIN-BOTTOM: 10px; LINE-HEIGHT: 18pt"
align=center><B>AdCare Health Systems to Acquire Two Alabama Nursing Homes for
$18.5 million</B></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 13pt; MARGIN-BOTTOM: 8px; LINE-HEIGHT: 15pt"
align=center><B>Acquisitions to Increase AdCare&#146;s Revenue by 60% and be
Immediately Accretive to Earnings</B></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt"><B>SPRINGFIELD, Ohio,
March 10 </B><FONT style="FONT-FAMILY: Arial">- </FONT>AdCare Health Systems,
Inc. (NYSE AMEX: ADK), an Ohio-based long-term care, home care and management
company, has signed a definitive purchase agreement for two privately-held
nursing homes in Alabama for $18.5 million.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">The facilities have a
total of 312 beds and currently generate approximately $18 million in annualized
revenue. The acquisitions, which represent the company&#146;s first expansion outside
of Ohio, are expected to increase AdCare&#146;s annualized revenue by 60% and be
immediately accretive to earnings. Management expects to close the transaction
in the second quarter of 2010. </P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">&#147;These two facilities
are the first of several potential acquisitions in our pipeline, and are in line
with our stated goal to grow both organically and through accretive
acquisitions,&#148; said Chris Brogdon, AdCare&#146;s vice chairman and chief acquisitions
officer. &#147;We are seeing tremendous opportunities in the highly fragmented health
care segments of senior assisted living, elderly nursing care and home health
care services <FONT style="FONT-FAMILY: Arial">-</FONT> all of which are
exhibiting strengthening demographics combined with limited facilities to meet
future demand.&#148;</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">AdCare will finance
this purchase through a local bank, with a guarantee by the United States
Department of Agriculture (USDA). The guarantee is provided through a program
developed by the government to supply long-term financing for rural projects at
favorable rates. &nbsp;</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">&#147;We believe the
highly-favorable financing we&#146;ve received is indicative of what to expect with
future acquisitions,&#148; added Brogdon, &#147;especially with the federal economic
stimulus bill strengthening these federal loan guaranty programs. This should
allow us to expand our operations expeditiously without being dilutive to
shareholders or creating a complicated capital structure.&#148;</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">Brogdon joined AdCare
last September when the company announced an aggressive M&amp;A growth strategy
to build upon its strong reputation for operational efficiency and high-quality
living environments, as well as its increasing financial strength. The company
returned to profitability in the first quarter of 2009 and is expected to report
its fifth consecutive year of revenue growth for 2010.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt"><B>About AdCare
Health Systems</B></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">AdCare Health
Systems, Inc. (NYSE AMEX: ADK ) develops, owns and manages assisted living
facilities, nursing homes and retirement communities and provides home health
care services. Prior to becoming a publicly traded company in November of 2006,
AdCare operated as a private company for 18 years. AdCare's 920 employees
provide high-quality care, management services and other services for patients
and residents residing in 20 facilities, seven of which are assisted living
facilities, 12 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. &nbsp;For more information about
Adcare, visit <FONT
style="COLOR: #0000ff"><U>www.adcarehealth.com</U></FONT>.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt"><B>Safe Harbor
Statement</B></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">Statements contained
in this press release that are not historical facts may be forward-looking
statements within the meaning of federal law. Such forward-looking statements
reflect management's beliefs and assumptions and are based on information
currently available to management. The forward-looking statements involve known
</P>
<P style="MARGIN: 0px"><BR><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt" align=center>4</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="FONT-SIZE: 12pt; PAGE-BREAK-BEFORE: always; MARGIN: 0px; LINE-HEIGHT: 14pt">and
unknown risks, results, performance or achievements of the company to differ
materially from those expressed or implied in such statements. Such factors are
identified in the public filings made by the company with the Securities and
Exchange Commission and include the company's ability to secure lines of credit
and/or an acquisition credit facility, find suitable acquisition properties at
favorable terms, changes in the health care industry because of political and
economic influences, changes in regulations governing the industry, changes in
reimbursement levels including those under the Medicare and Medicaid programs
and changes in the competitive marketplace. There can be no assurance that such
factors or other factors will not affect the accuracy of such forward-looking
statements.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt"><B>Company
Contact</B></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">Chris Brogdon</P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">Vice Chairman and
Chief Acquisitions Officer</P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">AdCare Health
Systems, Inc.</P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">Tel (937)
964-8974</P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">Email: <FONT
style="COLOR: #0000ff"><U>info@adcarehealth.com</U></FONT></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt"><B>Investor
Relations</B></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">Scott Liolios or Ron
Both</P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">Liolios Group,
Inc.</P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">Tel (949)
574-3860</P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt">Email:
info@liolios.com</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 14px" align=justify><BR><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt" align=center>5</P>
<P
style="MARGIN: 0px"><BR></P></BODY>
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SECURITIES AND EXCHANGE COMMISSION
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
FORM
8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(d) OF
THE
SECURITIES EXCHANGE ACT OF 1934
Date of
Report:  March 11, 2010
Date of
Earliest Event Reported:  March 7, 2010
AdCare Health Systems, Inc.
(Exact Name of Registrant as specified in its Charter)
Ohio
31-1332119
(State or other jurisdiction of
incorporation
or organization)
(I.R.S. Employer Identification No.)
5057 Troy Rd, Springfield, OH
45502-9032
(Address of principal executive offices)
(Zip Code)
Registrant's Telephone Number, Including Area Code
(937) 964-8974
Check the appropriate box below if the form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of
the following provisions (See General Instruction A2. below):
[  ] Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425)
[  ] Soliciting material pursuant to Rule 14a-12 under the
Exchange Act (17 CFR 240.14a-12)
[  ] Pre-commencement communications pursuant to Rule
14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)
[  ] Pre-commencement communications pursuant to Rule
13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c)).
1
Item 1.01.  Entry into a Material Definitive
Agreement.
On March 7, 2010, Coosa Nursing ADK, LLC, a yet to be formed
wholly owned subsidiary of AdCare Health Systems, Inc. (the "Company") entered a
Purchase Agreement with Coosa Valley Health Care Inc, an Alabama corporation, to
acquire the assets of Coosa Valley Health Care, a 124 bed skilled nursing
facility located in Gadsden, Alabama.  The purchase price is $8,700,000
with an anticipated closing date of June 1, 2010.  The Company paid
$150,000 upon signing the purchase agreement as earnest money.
On March 7, 2010, Attalla Nursing ADK, LLC, a yet to be formed
wholly owned subsidiary of AdCare Health Systems, Inc. (the "Company") entered a
Purchase Agreement with Attalla Health Care Inc., an Alabama corporation, to
acquire the assets of Attalla Health Care, a 182 bed skilled nursing facility
located in Attalla, Alabama.  The purchase price is $9,800,000 with an
anticipated closing date of June 1, 2010.  The Company paid $150,000 upon
signing the purchase agreement as earnest money.
Coosa Valley Health Care Inc. and Attalla Health Care Inc. are
owned by the same individuals.
If the Company terminates the purchase agreement(s) because of
seller's failure to satisfy certain conditions of the purchase agreement(s), the
earnest money will be returned to the Company.  Conversely, if the Company
fails to complete the purchase for reasons other than the defined conditions
within the purchase agreement(s), then the seller will retain the earnest money.
 Upon closing of the purchase, the earnest money will be applied against
the purchase price.
Item 8.01 Other Matters
On March 10, 2009, the Company issued a press release announcing
their entry into the purchase agreements described under Item 1.01 above.
 A copy of the press release is attached as Exhibit 99.1 to this Form
8-K.
The information in this Item 8.01 and Exhibit 99.1 is being
furnished and shall not be deemed "filed" for purposes of Section 18 of the
Securities and Exchange Act of 1934, as amended (the "Exchange Act") or
otherwise subject to the liabilities of that section, nor shall it be deemed
incorporated by reference in any filing under the Securities Act of 1933, as
amended, or the Exchange Act, except as shall be expressly set forth in such
filing.
Item 9.01.  Financial Statements and Exhibits.
Exhibits
Exhibit Number
Description of Exhibit
99.1
Press Release dated March 11, 2010
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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:  March 11, 2010
ADCARE
HEALTH SYSTEMS, INC.
By:
/s/ Scott Cunningham
Name:
Scott Cunningham
Title:
 Chief Financial Officer
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Exhibit 99.1
FOR IMMEDIATE
RELEASE
AdCare Health Systems to Acquire Two Alabama Nursing Homes for
$18.5 million
Acquisitions to Increase AdCare's Revenue by 60% and be
Immediately Accretive to Earnings
SPRINGFIELD, Ohio,
March 10
-
AdCare Health Systems,
Inc. (NYSE AMEX: ADK), an Ohio-based long-term care, home care and management
company, has signed a definitive purchase agreement for two privately-held
nursing homes in Alabama for $18.5 million.
The facilities have a
total of 312 beds and currently generate approximately $18 million in annualized
revenue. The acquisitions, which represent the company's first expansion outside
of Ohio, are expected to increase AdCare's annualized revenue by 60% and be
immediately accretive to earnings. Management expects to close the transaction
in the second quarter of 2010.
"These two facilities
are the first of several potential acquisitions in our pipeline, and are in line
with our stated goal to grow both organically and through accretive
acquisitions," said Chris Brogdon, AdCare's vice chairman and chief acquisitions
officer. "We are seeing tremendous opportunities in the highly fragmented health
care segments of senior assisted living, elderly nursing care and home health
care services
-
all of which are
exhibiting strengthening demographics combined with limited facilities to meet
future demand."
AdCare will finance
this purchase through a local bank, with a guarantee by the United States
Department of Agriculture (USDA). The guarantee is provided through a program
developed by the government to supply long-term financing for rural projects at
favorable rates.
"We believe the
highly-favorable financing we've received is indicative of what to expect with
future acquisitions," added Brogdon, "especially with the federal economic
stimulus bill strengthening these federal loan guaranty programs. This should
allow us to expand our operations expeditiously without being dilutive to
shareholders or creating a complicated capital structure."
Brogdon joined AdCare
last September when the company announced an aggressive M&A growth strategy
to build upon its strong reputation for operational efficiency and high-quality
living environments, as well as its increasing financial strength. The company
returned to profitability in the first quarter of 2009 and is expected to report
its fifth consecutive year of revenue growth for 2010.
About AdCare
Health Systems
AdCare Health
Systems, Inc. (NYSE AMEX: ADK ) develops, owns and manages assisted living
facilities, nursing homes and retirement communities and provides home health
care services. Prior to becoming a publicly traded company in November of 2006,
AdCare operated as a private company for 18 years. AdCare's 920 employees
provide high-quality care, management services and other services for patients
and residents residing in 20 facilities, seven of which are assisted living
facilities, 12 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.  For more information about
Adcare, visit
www.adcarehealth.com
.
Safe Harbor
Statement
Statements contained
in this press release that are not historical facts may be forward-looking
statements within the meaning of federal law. Such forward-looking statements
reflect management's beliefs and assumptions and are based on information
currently available to management. The forward-looking statements involve known
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and
unknown risks, results, performance or achievements of the company to differ
materially from those expressed or implied in such statements. Such factors are
identified in the public filings made by the company with the Securities and
Exchange Commission and include the company's ability to secure lines of credit
and/or an acquisition credit facility, find suitable acquisition properties at
favorable terms, changes in the health care industry because of political and
economic influences, changes in regulations governing the industry, changes in
reimbursement levels including those under the Medicare and Medicaid programs
and changes in the competitive marketplace. There can be no assurance that such
factors or other factors will not affect the accuracy of such forward-looking
statements.
Company
Contact
Chris Brogdon
Vice Chairman and
Chief Acquisitions Officer
AdCare Health
Systems, Inc.
Tel (937)
964-8974
Email:
info@adcarehealth.com
Investor
Relations
Scott Liolios or Ron
Both
Liolios Group,
Inc.
Tel (949)
574-3860
Email:
info@liolios.com
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