SOURCE: AdCare Health Systems, Inc.

AdCare Health Systems, Inc.

December 12, 2011 08:31 ET

AdCare Health Systems Appoints David Rubenstein as Chief Operating Officer

SPRINGFIELD, OH--(Marketwire - Dec 12, 2011) - AdCare Health Systems, Inc. (NYSE Amex: ADK), a leading nursing home and assisted living company, appointed David Rubenstein to the new position of chief operating officer, effective December 19, 2011.

Rubenstein brings to AdCare extensive operational experience in delivering long-term care, including P&L management, census development, and administrative support.

"David's extensive experience in implementing operating strategies that maximize facility productivity, minimize costs and increase Medicare census fits perfectly with our M&A and facility optimization programs," said Boyd Gentry, AdCare's president and CEO. "David will play a key role in advancing our mission of delivering high-quality care along with strong operational efficiency."

Rubenstein has more than 23 years of experience in long-term care facility management. He was previously CEO of LaVie Management Services, managing the operations of 60 skilled nursing facilities across 16 states. Prior to LaVie, he served as CEO of Coastal Administrative Services and executive vice president of strategy and support for Genoa Healthcare, responsible for IT, accounting, and reimbursement in support of 145 skilled nursing facilities.

Rubenstein earlier served as chief development officer of Genoa Healthcare Consulting, where he was responsible for acquisitions and divestitures for the 128 facility organization. Rubenstein also held several executive positions with Centennial HealthCare, including senior vice president of inpatient services, responsible for the operations of 67 skilled nursing facilities.

Rubenstein received his Bachelor of Science in Accounting from the University of Rhode Island. He is a teaching affiliate with Lincoln Healthcare Events, the Healthcare Financial Managers Association, and the American Health Care Association. Rubenstein is also process master certified by Hammer and Company.

Inducement Award
As an inducement to Rubenstein to accept the position of chief operating officer, AdCare intends to grant to Rubenstein on December 19, 2011: (a) a ten-year warrant to purchase 100,000 shares of common stock, with an exercise price equal to the per share closing price of the common stock on such date; and (b) a ten-year warrant to purchase 100,000 shares of common stock with an exercise price equal to the per share closing price of the common stock on such date plus $1.00. The first warrant will vest as to one-third of the underlying shares on each of the three subsequent anniversaries of the grant date, and the second warrant will vest as to one-third of the underlying shares on each of the second, third and fourth anniversaries of the grant date. The warrants may be exercised for cash or by cashless exercise.

About AdCare Health Systems
AdCare Health Systems, Inc. (NYSE 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. 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 statements 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, Rubenstein's expected effective appointment date of December 19, 2011, and AdCare's intended inducement award for Rubenstein. Such forward-looking statements reflect management's beliefs and assumptions and are based on information currently available to management, and involve known and unknown risks, results, performance or achievements of AdCare which may differ materially from those expressed or implied in such statements. Such factors are identified in the public filings made by AdCare with the Securities and Exchange Commission and include, among others, AdCare'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. Except where required by law, AdCare undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this press release.

Contact Information

  • Company Contacts
    Boyd Gentry, CEO
    Chris Brogdon, Vice Chairman & CAO
    David A. Tenwick, Chairman of Board
    AdCare Health Systems, Inc.
    Tel (937) 964-8974
    Email Contact

    Investor Relations
    Ron Both or Geoffrey Plank
    Liolios Group, Inc.
    Tel (949) 574-3860
    Email Contact