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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;September 29, 2009</P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt" align=center>Date of
Earliest Event Reported: &nbsp;September 24, 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 &nbsp;Departure of Directors or Certain Officers;
&nbsp;Election of Directors; &nbsp;Appointment of Certain Officers;
&nbsp;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 September 24, 2009, the Board of Directors of AdCare Health
Systems, Inc. (the &#147;Company&#148;) decided to increase the number of Directors from
six to seven and to authorize the appointment of Christopher Brogdon, age 60, to
serve as the seventh Director until the next annual election of Directors by
shareholders of the Company. &nbsp;Mr. Brogdon will not serve on any Board
committees at this time. &nbsp;Mr. Brogdon has no other directorships.</P>
<P style="FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt" align=justify>Mr.
Brogdon brings to AdCare more than 20 years of experience in the nursing home,
assisted living and retirement community industry. &nbsp;His career highlights
include:</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px; FONT-FAMILY: Symbol"
align=justify>&#183;</P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt"
align=justify>Since January 1998, the owner of Brogdon Family LLC which owns and
operates nursing homes, assisted living facilities and restaurants. &nbsp;</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px; LINE-HEIGHT: 12.5pt; FONT-FAMILY: Symbol"
align=justify>&#183;</P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt"
align=justify>Chairman of the board of NYSE-listed Retirement Care Associates
(RCA), where he recapitalized the Company and engineered an acquisition program
that expanded RCA from 3 to 120 facilities and increased annual revenue from
$1.0 million to more than $350 million. &nbsp;RCA was eventually acquired by Sun
Healthcare for more than $350 million.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px; LINE-HEIGHT: 12.5pt; FONT-FAMILY: Symbol"
align=justify>&#183;</P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 10.5pt; MARGIN: 0px; LINE-HEIGHT: 12.5pt"
align=justify>Chairman of the board of Nasdaq-listed Contour Medical, which
under his direction achieved a seven-fold increase in revenue &#150; from $5.0
million to $35.0 million &#150; and was eventually sold at a price of $12 per share,
up from $1 per share when Brogdon assumed the chairmanship.</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>There is no arrangement or understanding between Mr. Brogdon and
any other person pursuant to which Mr. Brogdon was elected as a director of the
Company. &nbsp;The Company is not aware of any transactions involving Mr.
Brogdon that are reportable under Item 404(a) of Regulation S-K.</P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt"
align=justify>Also, on September 24, 2009, the Board of Directors appointed Mr.
Brogdon as Vice Chairman and Chief Acquisitions Officer. &nbsp;Mr. Brogdon will
be responsible for managing the Company&#146;s efforts to accelerate growth through
selective acquisitions of nursing homes and assisted living facilities.
&nbsp;</P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 10.5pt; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 12.5pt"
align=justify>Mr. Brogdon&#146;s compensation will consist of 300,000 warrants all of
which shall expire on November 1, 2017; 100,000 of the warrants will vest
immediately and be exercisable at $3.00 per share. &nbsp;An additional 100,000
warrants will vest on January 1, 2010 and be exercisable at a price of $4.00 per
share. &nbsp;The final 100,000 warrants will vest January 1, 2011 and be
exercisable at a price of $5.00 per share. &nbsp;The Company plans to enter an
employment agreement with Mr. Brogdon however, the terms of the employment
agreement are not yet known. &nbsp;</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 September 24, 2009, the Company issued a press release
announcing the election of Mr. Brogdon 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 the 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 September 24,
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;September 29, 2009</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 September 24,
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="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 12pt; MARGIN-BOTTOM: -18px; LINE-HEIGHT: 14pt; FONT-FAMILY: Arial">For
Immediate Release:</P>
<P
style="FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: 440px; LINE-HEIGHT: 14pt; FONT-FAMILY: Arial">NYSE
AMEX: ADK</P>
<P
style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt; FONT-FAMILY: Arial">September
24, 2009</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt; FONT-FAMILY: Arial"><B>AdCare
Health Systems Names Chris Brogdon Vice Chairman and Chief Acquisitions Officer
to Lead Aggressive M&amp;A Growth Strategy</B></P>
<P style="MARGIN: 0px"><BR></P>
<P
style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt; FONT-FAMILY: Arial">SPRINGFIELD,
Ohio, &nbsp;September 24, 2009 /PRNewswire-FirstCall &nbsp;AdCare Health
Systems, Inc. (NYSE AMEX: ADK), an Ohio-based long term care, home care and
management company, today announced the appointment of veteran industry
executive Chris Brogdon as Vice Chairman and Chief Acquisitions Officer.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt; FONT-FAMILY: Arial">Brogdon,
age 60, is AdCare&#146;s largest individual stockholder. &nbsp;In addition to his
duties as Vice Chairman of the Board, Brogdon will manage the Company&#146;s efforts
to accelerate growth through selective acquisitions of nursing homes and
assisted living facilities.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt; FONT-FAMILY: Arial">Brogdon
brings to AdCare more than 20 years of experience in the nursing home, assisted
living and retirement community industry. &nbsp;His career highlights
include:</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN-BOTTOM: -18px; TEXT-INDENT: -24px; LINE-HEIGHT: 14pt; FONT-FAMILY: Symbol">&#183;</P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt; FONT-FAMILY: Arial">Chairman
of the board of NYSE-listed Retirement Care Associates (RCA), where he
recapitalized the Company and engineered an acquisition program that expanded
RCA from 3 to 120 facilities and increased annual revenue from $1.0 million to
more than $350 million. &nbsp;RCA was eventually acquired by Sun Healthcare for
more than $350 million.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN-BOTTOM: -18px; TEXT-INDENT: -24px; LINE-HEIGHT: 14pt; FONT-FAMILY: Symbol">&#183;</P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt; FONT-FAMILY: Arial">Chairman
of the board of Nasdaq-listed Contour Medical, which under his direction
achieved a seven-fold increase in revenue &#150; from $5.0 million to $35.0 million &#150;
and was eventually sold at a price of $12 per share, up from $1 per share when
Brogdon assumed the chairmanship.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt; FONT-FAMILY: Arial">David
A. Tenwick, Chairman of AdCare, stated that &#147;Chris Brogdon has a strong track
record of building shareholder value through a combination of acquisitive and
organic growth.&#148; &nbsp;Tenwick continued, &#147;As our largest individual
stockholder, he has demonstrated a strong, long-term commitment to AdCare and is
the ideal candidate to manage our M&amp;A activities. &nbsp;In addition, with
his experience, he has contacts with many banks and financial institutions that
can be very beneficial to our expansion strategy.&#148;</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt; FONT-FAMILY: Arial">&#147;I
am excited to accept this new assignment with AdCare and confident in our
abilities to accelerate growth through a combination of acquisitions and organic
initiatives,&#148; Brogdon said. &nbsp;&#147;AdCare is a well-managed, highly regarded
company with a wide range of complementary services in the nursing home,
assisted living and home care sectors. &nbsp;The Company has demonstrated the
ability to achieve profitability and steady growth in a challenging economy.
&nbsp;We intend to leverage AdCare&#146;s infrastructure and reputation to build
additional value for our shareholders, residents, partners and other
stakeholders </P>
<P style="MARGIN: 0px"><BR></P>
<P
style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt; FONT-FAMILY: Arial">AdCare
has achieved four consecutive years of revenue growth and is on track to achieve
its fifth year. &nbsp;The Company recently reported revenue of $13.0 million
through the first six months of 2009, up 8.2% from $12.0 million in the same
period a year ago. &nbsp;The Company also transitioned to bottom line
profitability for two straight quarters due to improved occupancy in its skilled
nursing centers and </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; FONT-FAMILY: Arial">assisted
living facilities as well as higher revenue in its home health care division.
&nbsp;Basic and diluted net income per share through six months was $0.07 as
compared to a net loss of $0.02 per basic and diluted share in the first six
months of 2008. Operating income through the first six months of 2009 increased
to $931,000 from $155,000 for the same period last year.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt; FONT-FAMILY: Arial"><B>About
AdCare Health Systems, Inc.</B></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 12pt; MARGIN-BOTTOM: 21px; LINE-HEIGHT: 14pt; FONT-FAMILY: Arial">AdCare
Health Systems, Inc. (NYSE AMEX: <FONT style="COLOR: #00007f">ADK</FONT> - <FONT
style="COLOR: #00007f">News</FONT>) 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'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, twelve 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.</P>
<P
style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt; FONT-FAMILY: Arial"><B>Safe
Harbor Statement</B></P>
<P
style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt; FONT-FAMILY: Arial">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 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; FONT-FAMILY: Arial">Contact:</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt; FONT-FAMILY: Arial">David
A. Tenwick</P>
<P
style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt; FONT-FAMILY: Arial">Chairman,
AdCare Health Systems, Inc.</P>
<P
style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt; FONT-FAMILY: Arial">1-740-549-0400</P>
<P
style="FONT-SIZE: 12pt; MARGIN: 0px; COLOR: #0000ff; LINE-HEIGHT: 14pt; FONT-FAMILY: Arial"><U>dat@adcarehealth.com</U><FONT
style="COLOR: #000000"></FONT></P>
<P
style="FONT-SIZE: 12pt; MARGIN: 0px; COLOR: #0000ff; LINE-HEIGHT: 14pt; FONT-FAMILY: Arial"><U>www.adcarehealth.com</U><FONT
style="COLOR: #000000"></FONT></P>
<P style="MARGIN: 0px"><BR></P>
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SECURITIES AND EXCHANGE COMMISSION
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
FORM
8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(d) OF
THE
SECURITIES EXCHANGE ACT OF 1934
Date of
Report:  September 29, 2009
Date of
Earliest Event Reported:  September 24, 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)).
1
Item 5.02  Departure of Directors or Certain Officers;
 Election of Directors;  Appointment of Certain Officers;
 Compensatory Arrangements of Certain Officers
On September 24, 2009, the Board of Directors of AdCare Health
Systems, Inc. (the "Company") decided to increase the number of Directors from
six to seven and to authorize the appointment of Christopher Brogdon, age 60, to
serve as the seventh Director until the next annual election of Directors by
shareholders of the Company.  Mr. Brogdon will not serve on any Board
committees at this time.  Mr. Brogdon has no other directorships.
Mr.
Brogdon brings to AdCare more than 20 years of experience in the nursing home,
assisted living and retirement community industry.  His career highlights
include:
·
Since January 1998, the owner of Brogdon Family LLC which owns and
operates nursing homes, assisted living facilities and restaurants.
·
Chairman of the board of NYSE-listed Retirement Care Associates
(RCA), where he recapitalized the Company and engineered an acquisition program
that expanded RCA from 3 to 120 facilities and increased annual revenue from
$1.0 million to more than $350 million.  RCA was eventually acquired by Sun
Healthcare for more than $350 million.
·
Chairman of the board of Nasdaq-listed Contour Medical, which
under his direction achieved a seven-fold increase in revenue – from $5.0
million to $35.0 million – and was eventually sold at a price of $12 per share,
up from $1 per share when Brogdon assumed the chairmanship.
There is no arrangement or understanding between Mr. Brogdon and
any other person pursuant to which Mr. Brogdon was elected as a director of the
Company.  The Company is not aware of any transactions involving Mr.
Brogdon that are reportable under Item 404(a) of Regulation S-K.
Also, on September 24, 2009, the Board of Directors appointed Mr.
Brogdon as Vice Chairman and Chief Acquisitions Officer.  Mr. Brogdon will
be responsible for managing the Company's efforts to accelerate growth through
selective acquisitions of nursing homes and assisted living facilities.
Mr. Brogdon's compensation will consist of 300,000 warrants all of
which shall expire on November 1, 2017; 100,000 of the warrants will vest
immediately and be exercisable at $3.00 per share.  An additional 100,000
warrants will vest on January 1, 2010 and be exercisable at a price of $4.00 per
share.  The final 100,000 warrants will vest January 1, 2011 and be
exercisable at a price of $5.00 per share.  The Company plans to enter an
employment agreement with Mr. Brogdon however, the terms of the employment
agreement are not yet known.
Item 8.01 Other Matters
On September 24, 2009, the Company issued a press release
announcing the election of Mr. Brogdon 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 the 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 September 24,
2009
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 29, 2009
ADCARE
HEALTH SYSTEMS, INC.
By:
/s/ Scott Cunningham
Name:
Scott Cunningham
Title:
 Chief Financial Officer
3
EXHIBIT INDEX
Exhibit
No.
Description
99.1
AdCare
Health Systems, Inc. Press Release, dated September 24,
2009.
4
Exhibit 99.1
For
Immediate Release:
NYSE
AMEX: ADK
September
24, 2009
AdCare
Health Systems Names Chris Brogdon Vice Chairman and Chief Acquisitions Officer
to Lead Aggressive M&A Growth Strategy
SPRINGFIELD,
Ohio,  September 24, 2009 /PRNewswire-FirstCall  AdCare Health
Systems, Inc. (NYSE AMEX: ADK), an Ohio-based long term care, home care and
management company, today announced the appointment of veteran industry
executive Chris Brogdon as Vice Chairman and Chief Acquisitions Officer.
Brogdon,
age 60, is AdCare's largest individual stockholder.  In addition to his
duties as Vice Chairman of the Board, Brogdon will manage the Company's efforts
to accelerate growth through selective acquisitions of nursing homes and
assisted living facilities.
Brogdon
brings to AdCare more than 20 years of experience in the nursing home, assisted
living and retirement community industry.  His career highlights
include:
·
Chairman
of the board of NYSE-listed Retirement Care Associates (RCA), where he
recapitalized the Company and engineered an acquisition program that expanded
RCA from 3 to 120 facilities and increased annual revenue from $1.0 million to
more than $350 million.  RCA was eventually acquired by Sun Healthcare for
more than $350 million.
·
Chairman
of the board of Nasdaq-listed Contour Medical, which under his direction
achieved a seven-fold increase in revenue – from $5.0 million to $35.0 million –
and was eventually sold at a price of $12 per share, up from $1 per share when
Brogdon assumed the chairmanship.
David
A. Tenwick, Chairman of AdCare, stated that "Chris Brogdon has a strong track
record of building shareholder value through a combination of acquisitive and
organic growth."  Tenwick continued, "As our largest individual
stockholder, he has demonstrated a strong, long-term commitment to AdCare and is
the ideal candidate to manage our M&A activities.  In addition, with
his experience, he has contacts with many banks and financial institutions that
can be very beneficial to our expansion strategy."
"I
am excited to accept this new assignment with AdCare and confident in our
abilities to accelerate growth through a combination of acquisitions and organic
initiatives," Brogdon said.  "AdCare is a well-managed, highly regarded
company with a wide range of complementary services in the nursing home,
assisted living and home care sectors.  The Company has demonstrated the
ability to achieve profitability and steady growth in a challenging economy.
 We intend to leverage AdCare's infrastructure and reputation to build
additional value for our shareholders, residents, partners and other
stakeholders
AdCare
has achieved four consecutive years of revenue growth and is on track to achieve
its fifth year.  The Company recently reported revenue of $13.0 million
through the first six months of 2009, up 8.2% from $12.0 million in the same
period a year ago.  The Company also transitioned to bottom line
profitability for two straight quarters due to improved occupancy in its skilled
nursing centers and
5
assisted
living facilities as well as higher revenue in its home health care division.
 Basic and diluted net income per share through six months was $0.07 as
compared to a net loss of $0.02 per basic and diluted share in the first six
months of 2008. Operating income through the first six months of 2009 increased
to $931,000 from $155,000 for the same period last year.
About
AdCare Health Systems, Inc.
AdCare
Health Systems, Inc. (NYSE AMEX:
ADK
-
News
) 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, twelve 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
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,
AdCare Health Systems, Inc.
1-740-549-0400
dat@adcarehealth.com
www.adcarehealth.com
6