AdCare Health Systems Reports Significant Operational Improvements at Oklahoma City Facility

Northwest Nursing Center Shows Census Growth, Improved Patient Mix, Demonstrating Initial Success of AdCare's Strategic Plan to Improve Facility-Level Operations

Jun 10, 2014, 08:00 ET from AdCare Health Systems, Inc.

ATLANTA, June 10, 2014 /PRNewswire/ -- AdCare Health Systems, Inc. (NYSE MKT: ADK), (NYSE MKT: ADK.PRA) a leading long-term care provider, today reported that as part of the Company's strategic plan to improve facility level operations, the Northwest Nursing Center facility in Oklahoma City has achieved significant improvements in census, patient mix and resident satisfaction.

The Northwest Nursing Center (Northwest) is part of AdCare's Oklahoma City hub, which includes the Quail Creek Rehabilitation center and the nearby Companions Christian Care in Tulsa. AdCare acquired Northwest, which was at the time in receivership, and took ownership on January 1, 2013. In the past six months, AdCare has significantly upgraded facility leadership, remodeled the physical plant and invested in new furniture, fixture and equipment, and implemented new strategies. As a result, Northwest has seen a 40% improvement in Average Daily Census, with a more profitable mix of patients.

"By fully buying into our approach of Embracing Accountability, working to create a more comfortable residence and improving execution at all levels, Northwest has quickly become one of AdCare's flagship facilities and serves as an example for what we are trying to achieve system-wide," commented Barry Somervell, AdCare's Senior Vice President, Strategy and Development.

A key part of this effort was new facility leadership. In April, Guyna Parola was named the permanent Administrator for Northwest. A new director of nursing and a medical director, both with solid ties to area hospitals, were added to the team, helping Northwest build clinical program offerings to better serve the need of feeder hospitals nearby. Also, a new dietary manager was hired to improve the quality of food for the residents. Simultaneously, cost saving measures were implemented to ensure that the facility stayed within budgets even with these enhancements. In addition, new and improved processes were put in place to improve staff training, streamline the admission process, enhance quality, facilitate partnerships with community organizations, and more accurately measure operations.

As a result, census has improved from 30 residents, with one Medicare-paid resident when Ms. Parola was hired, to 50 residents, with 14 Medicare patients as of today. A transitional care unit was also opened at Northwest, expanding the facility from strictly a long term care facility to one that is meeting the short-term rehabilitation needs of the community by now serving 14 short stay rehab patients.

John Thomas, AdCare's Regional Vice President of operations, added, "AdCare has a straightforward, but ambitious plan to improve operations at the facility level, and the Northwest Nursing Center is a prime example of what happens when the plan is carefully and effectively executed. We put a talented team with strong local ties in place and developed programs to meet the needs of the Oklahoma City market. We also took steps to improve the facility and implemented process improvement initiatives across the board. The results have been encouraging, and this facility should see continued improvements in census, skilled mix and profitability."

About AdCare Health Systems
AdCare Health Systems, Inc. (NYSE MKT: ADK) (NYSE MKT:  ADK.PRA) is a recognized provider of senior living and health care facility management. AdCare owns and manages, long-term care facilities and retirement communities, and since the Company's inception in 1988, its mission has been to provide the highest quality of healthcare services to the elderly through its operating subsidiaries, including a broad range of skilled nursing and sub-acute care services. For more information about AdCare, visit

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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: (i) statements regarding drivers of operational growth;  (ii) statements regarding expense reductions and expense run-rate; (iii) statements regarding improvements in the admissions process; (iv) statements regarding financial and operational improvements; (v) statements regarding the outlook for revenue and other financial metrics; and (vi)  statements regarding the Company's current plans to issue equity instruments. Such 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 and include, among others, AdCare's ability to secure lines of credit and/or an acquisition credit facility, AdCare's ability to refinance its current debt on more favorable terms, AdCare's ability to expand its borrowing arrangement with certain existing lenders, AdCare's ability to raise equity capital, AdCare's ability to improve operating results, changes in the health care industry because of political and economic influences, changes in regulations governing the health care industry, changes in reimbursement levels including those under the Medicare and Medicaid programs and changes in the competitive marketplace. 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.

In addition, each facility mentioned in this press release is operated by a separate, wholly owned, independent operating subsidiary that has its own management, employees and assets.

References to the consolidated Company and its assets and activities, as well as the use of terms such as "we," "us," "our," and similar verbiage, is not meant to imply that AdCare Health Systems, Inc. has direct operating assets, employees or revenue or that any of the facilities, the home health business or other related businesses are operated by the same entity.

SOURCE AdCare Health Systems, Inc.