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Disclaimer
ADK Refined Strategy Driving Rapid Growth
Relatively few of the most successful business are at the place they are because they came up with a totally new concept or industry. In almost every case, a company is successful because it has simply developed a better way of operating, filling an established need more efficiently than anyone else, bringing a new idea to an existing table.
In the case of AdCare Health Systems, a fast growing developer, owner, and operator of skilled nursing and assisted living communities, success has been based on identifying, acquiring, and transforming existing care facilities, pointing them in a more profitable direction, and incorporating more efficient operations. AdCare realized early-on that the healthcare facilities industry was highly fragmented, made up of largely family owned businesses, generally inefficiently run and weighted toward long-term low-margin markets. On the other hand, they realized that there was a growing need for acute-care high-margin facilities, a need that was not being met.
Through a carefully developed and managed strategy, AdCare has been able to steadily locate and aggressively acquire existing care facilities with just the right mix of needs and location. The company then applies a methodic plan, specifically attuned to the unique assets and requirements of each opportunity, to gradually reposition the operations to higher margin markets while streamlining internal procedures. The result has been a financial engine of increasing revenues and geographical expansion.
In their recent presentation at the 22nd Annual Global Healthcare Services Conference in New York, the company indicated that, with the recent acquisition of a skilled nursing and assisted living community in Ohio, plus 24 additional skilled nursing centers they expect to close in the first quarter of 2012, and the Abington Place skilled nursing facility in Q2 2012, the company expects its annualized revenue run-rate to exceed $355 million, which would represent an increase of 570% over revenues in 2010.
