ATLANTA, Feb. 7, 2017 /PRNewswire/ -- AdCare Health Systems, Inc. (NYSE MKT: ADK) (NYSE MKT: ADK.PRA), a self-managed healthcare real estate investment company that invests primarily in real estate purposed for senior living and long-term healthcare, today announced the company's Oceanside facility has been recertified by the Centers for Medicare and Medicaid Services ("CMS").
Bill McBride, AdCare's Chairman and Chief Executive Officer, commented, "The recertification of our Oceanside facility, alongside the recent recertification of our Jeffersonville facility, clears the path for these facilities to pay full rent -- an important milestone for improving cash flow. The additional investments we made in the Oceanside facility, coupled with Peach Health Group's diligence in addressing facility-related issues, enabled the recertification."
The Oceanside facility was decertified by CMS in May 2016 while subleased to New Beginnings Care LLC. Since that time, the company has subleased the facility to a new operator, an affiliate of Peach Health Group LLC, and worked closely with this new tenant to identify and make significant improvements to the physical property by investing approximately $750,000 in efforts to regain CMS certification. Annual, full rent on the facility is $432,000.
About AdCare Health Systems
AdCare Health Systems, Inc. (NYSE MKT: ADK) (NYSE MKT: ADK.PRA) is a self-managed healthcare real estate investment company that invests primarily in real estate purposed for senior living and long-term healthcare through facility lease and sub-lease transactions. AdCare currently owns, leases or manages for third parties 29 facilities. 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. Forward-looking statements reflect management's beliefs and assumptions and are based upon 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, including AdCare's Annual Report on Form 10-K for the year ended December 31, 2015, and AdCare's subsequently filed Quarterly Reports on Form 10-Q. There is 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.
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SOURCE AdCare Health Systems, Inc.