AdCare Health Systems, Inc. today announced that its Board of Directors has appointed William "Bill" McBride III as Chief Executive Officer and President and as a member of the board serving as a Class I director, effective immediately. A veteran of the REIT industry, Mr. McBride steps out of retirement to assume the positions.

"Bill brings to AdCare more than 30 years of healthcare, financing, real estate and corporate leadership experience, making him uniquely qualified to further our transition from an owner and operating company to an owner and leasing company," stated David Tenwick, AdCare's Chairman and Interim Chief Executive Officer. "Bill is an industry expert and proven leader in both the long-term care and real estate investment trust (REIT) businesses. His direct operational experience as CEO of a public assisted living company, coupled with his accomplishments leading a REIT, will prove invaluable as we execute this strategic plan and complete our transition."

Mr. McBride retired as Chairman and CEO of Assisted Living Concepts, now Enlivant, a pioneer in the assisted living industry, in 2000. An accomplished career, he completed the first IPO of a public assisted living company, expanded the company from four to 170 properties through new construction in 14 states and financed the company's growth through sales leaseback and mortgage financing transactions. Prior, Mr. McBride served as President, Chief Operating Officer and Director of LTC Properties, a real estate investment trust company which he co-founded in 1992. While there, he completed the largest REIT IPO at the time and successfully completed over $500 million in acquisitions and public financings, two securitization transactions, while increasing the company's cash flow and dividends per share by more than 70%.

Mr. McBride began his career as a healthcare consultant with Arthur Youngwhere he focused primarily on Medicare and Medicaid revenue enhancement strategies for nursing homes and hospitals. He then parlayed this experience into a leadership position at Beverly Enterprises where he served as Vice President and Controller of the largest operator of nursing homes in the United States.    

Bill is a graduate of the University of California Los Angles (UCLA) with an undergraduate degree in Economics and a Masters in Business Administration. Mr. McBride has also served on the Board of Directors and as Chairman of the Financing Committee of Malan Realty Properties, a NYSE listed commercial property REIT.

In connection with Mr. McBride's appointment as AdCare's Chief Executive Officer and President, Mr. McBride received a ten-year warrant to purchase 300,000 shares of AdCare's common stock with an exercise price of $4.49per share. One-third of the shares underlying the warrant will vest on each of October 10, 2015, October 10, 2016 and October 10, 2017, with the vesting of the warrant accelerating upon termination of Mr. McBride's employment (other than a termination by AdCare for cause or by Mr. McBride without good reason). The warrant was approved by the Compensation Committee of the Board of Directors, as well as the entire board, and was issued to Mr. McBride, pursuant to Section 711(a) of the NYSE MKT Company Guide, as a material inducement to Mr. McBride entering into employment with AdCare.