Posted 10/1/2012 09:08 am
Updated 2 years ago
AdCare Health Systems of Atlanta announced Monday that it will expand its Arkansas presence later this year.
AdCare said in a news release that it will purchase a newly constructed, 70-bed facility in Cabot for $6.3 million from an unnamed seller. The sale is expected to close in the fourth quarter.
Currently, AdCare operates nine skilled nursing and rehab centers in Arkansas, including three in metro Little Rock: Woodland Hills Health & Rehab, West Markham Subacute & Rehab and Northridge Healthcare & Rehab.
AdCare expects the new facility to bring in more than $8.5 million annually, taking its annual revenues to more than $300 million. Company officials cited the facility's proximity to two local hospitals, St. Vincent North in Sherwood and Baptist Health North in North Little Rock, which they believe will serve as "key referral sources."
"This impressive and strategically located facility squarely aligns with our strategic goals and significantly broadens our presence in the Little Rock region," said Boyd Gentry, AdCare's president and chief executive officer, in the release. "Our optimization strategy leverages our regional teams to increase facility occupancy and Medicare census, as well as optimize reimbursement and patient care. We have built a solid network of referrals for our Arkansas facilities, and adding this facility, we can more effectively take advantage of our regional organization.
"We expect to achieve optimal results for both the Medicare rate and mix over the initial nine to 12 months of operation."