AdCare Health Systems, Inc., a leading long-term care provider, today announced that, as part of its ongoing rationalization plan, it has signed an agreement to sublease one of its skilled nursing and rehabilitation facilities in South Georgia to a local nursing home operator effective July 1, 2014. AdCare incurred losses of approximately $92,000 in connection with operating this 52-bed facility during the first four months of this year; the facility is now expected to contribute approximately $90,000 of net profits annually during the life of the sublease. 

Under the terms of the triple net lease agreement, the lessee will be responsible for day-to-day management, ongoing maintenance and facility improvements for the duration of the lease. AdCare's Board of Directors is presently considering a number of other similar options across its portfolio to drive cash flow and maximize shareholder value and is being assisted and advised by an investment banking firm in evaluating these strategies.

"As part of our ongoing plans to improve our bottom line, we continue to review and rationalize our nursing home portfolio, identify opportunities for increased profitability and improve our overall financial results," commented David Tenwick, AdCare's Chairman, Interim Chief Executive Officer and President. "The lease of this facility is expected to positively contribute to the Company's bottom line, reduce the variability in operating expenses related to the facility and provide a more predictable return on investment."