AdCare Announces CMS Recertification of Oceanside Facility

ATLANTA, Feb. 7, 2017

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.

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