AdCare Shakes Up Board of Directors, Continues Shift Away from Operations

by Jeff Shaw

ATLANTA— AdCare Health Systems Inc. (NYSE MKT: ADK) (NYSE MKT: ADK.PRA), a provider of senior living and healthcare facility management, continues its transition from an owner and operator of healthcare facilities to a healthcare property holding and leasing company, with 35 of the company’s 40 properties leased or sub-leased. As a result, the company’s board of directors declared a cash dividend on the common stock. The company also announced changes to the board of directors and a the hiring of a new chief financial officer.

On March 31, the board declared a cash dividend of 5 cents per share of common stock, payable on April 30.

Allan J. Rimland, a financial executive with over 25 years of experience in investment banking and expertise within the healthcare services and related real estate industry, joined AdCare as president and chief financial officer.

During his career, Rimland has managed more than $100 billion in mergers and acquisitions and capital raising transactions. Rimland joined AdCare from Stephens Inc. where he served as managing director in the healthcare group, focusing on healthcare services companies since 2011.

Meanwhile, the board of directors went through several changes:

  • The board appointed Bill McBride as chairman. McBride will retain his position as CEO but will relinquish his position as president. He joined AdCare in October 2014, when he was selected to lead the company through its strategic transition from an owner and operator of healthcare facilities to a facilities holding company.
  • David Tenwick, the company’s founder and former chairman of the board, will continue as a director.
  • Michael Fox will serve as the lead independent director.
  • Peter Hackett will resign as a director after serving in this position since May 2005.

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