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AdCare Purchases US$27.3Mn Nursing Facilities in Arkansas to Drive Strong Revenue Growth

Industry Sector

Healthcare and Medical

Published

9 January 2012

Author

Mike King

Type of News

Mergers & Acquisitions

AdCare Health Systems Inc has seen revenues increase twelve-fold since the start of the company's mergers and acquisition campaign in 2009. AdCare has recently acquired three skilled nursing facilities in Arkansas at a cost of US$27.3 million. These facilities have an aggregate of 429 beds and will increase AdCare's revenues by US$22.2 million according to their most recent financials. This purchase is anticipated to be complete in the first quarter of 2012.

AdCare has reported significant revenue growth with revenues increasing by 500% since 2010. The company has entered a phase of mergers and acquisition and has reported a significant increase in revenue totals since 2009, increasing 12 times revenues in the last two years.

AdCare's portfolio as a result of the mergers and acquisitions activity includes a 157 bed skilled nursing facility close to Little Rock acute-care hospital which has recently been completely renovated. The aim of AdCare is to improve the occupancy rates with higher acuity patients and increase their revenues as a result. Chris Brogdon stated that this recent acquisition brings the number of facilities to total 54 since the mergers and acquisition programme was started. The company aims to continue with this strategy through 2012. AdCare has been actively targeting facilities in the Midwest and Southern States which have not traditionally concentrated on providing post-acute services.

During the first quarter of 2012, AdCare expects to complete a further 23 acquisitions of facilities in addition to the 3 just announced. AdCare Health Systems Inc is an innovator in senior living and health care facility management. The company started in 1988 and has aimed to provide the highest level of care to the elderly.

For more information about the care industry in the United States, click here: http://www.companiesandmarkets.com/Market-Report/nursing-care-facilities-in-the-us-industry-market-research-report-741423.asp

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