Long-term care provider AdCare Health Systems, Inc. (NYSE:ADK) has agreed to purchase a South Carolina skilled nursing facility for $4.2 million.
The 84-bed facility generations an estimated $3.8 million in gross annualized revenues, according to its most recent financials.
The acquisition is expected to close in the fourth quarter of 2012 and will be financed with a traditional bank loan.
“This transaction supports our aggressive M&A strategy of targeting underperforming skilled nursing properties for facility optimization,” said Boyd Gentry, AdCare’s president and chief executive officer. “Our optimization strategy leverages our regional teams to increase facility occupancy and Medicare census, as well as optimize reimbursement and patient care. We expect this strategy to generate a significant increase in revenues.”
AdCare has now put 48 senior care facilities under contract since beginning its M&A program, with plans to complete acquisitions on at least eight more properties in the second half of 2012.
Written by Alyssa Gerace