Retirement keeps AdCare Health Systems working. The company buys, leases, and manages some 50 nursing homes, assisted-living facilities, and independent retirement communities in Alabama, Arkansas, Georgia, Missouri, North Carolina, Ohio, and Oklahoma with a total of more than 4,800 beds in service. It owns all or part of about half of its facilities, including the Hearth & Home assisted living facilities. Services include Alzheimer's and subacute care. AdCare also operates a home health care business, Assured Health Care, which offers nursing, therapy, and living assistance services, as well as administrative services for insurance coordination and caregiver hiring.
AdCare has committed itself to growing by offering more residential senior living services, both through acquisitions and by achieving higher occupancy rates. The company began an aggressive acquisition push in 2010 to extend its operations into new territories. Following that launch, AdCare put about 40 facilities under contract in 2010 and 2011 and moved beyond its home base in Ohio. As its acquisitions continued, the company began working towards doubling its bedcount and its revenues during 2012, and it is moving into new territories including South Carolina, Tennessee, and Virginia.
AdCare keeps an eye out for facilities that have entered into bankruptcy or foreclosure. It then negotiates to lease or purchase the business, and works to increase occupancy rates, and preferably, increase the number of Medicare patients as residents. While Medicare reimbursement rates are mercurial, the profit margins are higher than for non-Medicare patients, and much better than the rates on empty beds.
While the company was busily building up its string of skilled nursing facilities, in 2011 it announced plans to exit the home health market. Also, in 2012, the company began divesting some assisted living facilities to increase its focus on skilled nursing.
AdCare was founded in 1991 and went public in 2006. – less