-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
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 YPrB/AZjfpgka1ffOCxNsQ==

<SEC-DOCUMENT>0001004724-10-000067.txt : 20101102
<SEC-HEADER>0001004724-10-000067.hdr.sgml : 20101102
<ACCEPTANCE-DATETIME>20101102144820
ACCESSION NUMBER:		0001004724-10-000067
CONFORMED SUBMISSION TYPE:	D
PUBLIC DOCUMENT COUNT:		1
ITEM INFORMATION:		Rule 506
FILED AS OF DATE:		20101102
DATE AS OF CHANGE:		20101102
EFFECTIVENESS DATE:		20101102

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ADCARE HEALTH SYSTEMS INC
		CENTRAL INDEX KEY:			0001004724
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-SKILLED NURSING CARE FACILITIES [8051]
		IRS NUMBER:				311332119
		STATE OF INCORPORATION:			OH

	FILING VALUES:
		FORM TYPE:		D
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	021-149906
		FILM NUMBER:		101157868

	BUSINESS ADDRESS:	
		STREET 1:		5057 TROY RD
		CITY:			SPRINGFEILD
		STATE:			OH
		ZIP:			45502
		BUSINESS PHONE:		937-964-8974

	MAIL ADDRESS:	
		STREET 1:		5057 TROY RD
		CITY:			SPRINGFIELD
		STATE:			OH
		ZIP:			45502
</SEC-HEADER>
<DOCUMENT>
<TYPE>D
<SEQUENCE>1
<FILENAME>primary_doc.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<edgarSubmission>

    <schemaVersion>X0704</schemaVersion>

    <submissionType>D</submissionType>

    <testOrLive>LIVE</testOrLive>

    <primaryIssuer>
        <cik>0001004724</cik>
        <entityName>ADCARE HEALTH SYSTEMS INC</entityName>
        <issuerAddress>
            <street1>5057 TROY RD</street1>
            <city>SPRINGFEILD</city>
            <stateOrCountry>OH</stateOrCountry>
            <stateOrCountryDescription>OHIO</stateOrCountryDescription>
            <zipCode>45502</zipCode>
        </issuerAddress>
        <issuerPhoneNumber>937-964-8974</issuerPhoneNumber>
        <jurisdictionOfInc>OHIO</jurisdictionOfInc>
        <issuerPreviousNameList>
            <value>None</value>
        </issuerPreviousNameList>
        <edgarPreviousNameList>
            <value>None</value>
        </edgarPreviousNameList>
        <entityType>Corporation</entityType>
        <yearOfInc>
            <overFiveYears>true</overFiveYears>
        </yearOfInc>
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    <relatedPersonsList>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>David</firstName>
                <middleName>A</middleName>
                <lastName>Tenwick</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>8503 Misty Woods Circle</street1>
                <city>Powell</city>
                <stateOrCountry>OH</stateOrCountry>
                <stateOrCountryDescription>OHIO</stateOrCountryDescription>
                <zipCode>43065</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Executive Officer</relationship>
                <relationship>Director</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification></relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>Gary</firstName>
                <middleName>L.</middleName>
                <lastName>Wade</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>5057 Troy Road</street1>
                <city>Springfield</city>
                <stateOrCountry>OH</stateOrCountry>
                <stateOrCountryDescription>OHIO</stateOrCountryDescription>
                <zipCode>45502</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Executive Officer</relationship>
                <relationship>Director</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification></relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>Scott</firstName>
                <lastName>Cunningham</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>5057 Troy Road</street1>
                <city>Springfield</city>
                <stateOrCountry>OH</stateOrCountry>
                <stateOrCountryDescription>OHIO</stateOrCountryDescription>
                <zipCode>45502</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Executive Officer</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification></relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>Sharon</firstName>
                <middleName>L.</middleName>
                <lastName>Reynolds</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>5057 Troy</street1>
                <city>Springfield</city>
                <stateOrCountry>OH</stateOrCountry>
                <stateOrCountryDescription>OHIO</stateOrCountryDescription>
                <zipCode>45502</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Executive Officer</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification></relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>Philip</firstName>
                <middleName>S.</middleName>
                <lastName>Radcliffe</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>5057 Troy Road</street1>
                <city>Springfield</city>
                <stateOrCountry>OH</stateOrCountry>
                <stateOrCountryDescription>OHIO</stateOrCountryDescription>
                <zipCode>45502</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Director</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification></relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>Laurence</firstName>
                <middleName>E.</middleName>
                <lastName>Sturtz</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>3421 Pointe Creek Court, Apt #106</street1>
                <city>Bonita Springs</city>
                <stateOrCountry>FL</stateOrCountry>
                <stateOrCountryDescription>FLORIDA</stateOrCountryDescription>
                <zipCode>34134</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Director</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification></relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>Jeffrey</firstName>
                <lastName>Levine</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>2615 Dunhollow</street1>
                <street2>Drive</street2>
                <city>Springfield</city>
                <stateOrCountry>OH</stateOrCountry>
                <stateOrCountryDescription>OHIO</stateOrCountryDescription>
                <zipCode>45503</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Director</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification></relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>Peter</firstName>
                <middleName>J.</middleName>
                <lastName>Hackett</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>505 West Home Road</street1>
                <city>Springfield</city>
                <stateOrCountry>OH</stateOrCountry>
                <stateOrCountryDescription>OHIO</stateOrCountryDescription>
                <zipCode>45504</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Director</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification></relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>Christopher</firstName>
                <lastName>Brogdon</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>345 Heards Ferry Road N.W.</street1>
                <city>Atlanta</city>
                <stateOrCountry>GA</stateOrCountry>
                <stateOrCountryDescription>GEORGIA</stateOrCountryDescription>
                <zipCode>30328</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Executive Officer</relationship>
                <relationship>Director</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification></relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>Boyd</firstName>
                <middleName>P</middleName>
                <lastName>Gentry</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>5057 Troy Road</street1>
                <city>Springfield</city>
                <stateOrCountry>OH</stateOrCountry>
                <stateOrCountryDescription>OHIO</stateOrCountryDescription>
                <zipCode>45502</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Director</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification></relationshipClarification>
        </relatedPersonInfo>
    </relatedPersonsList>

    <offeringData>
        <industryGroup>
            <industryGroupType>Other Health Care</industryGroupType>
        </industryGroup>
        <issuerSize>
            <revenueRange>$5,000,001 - $25,000,000</revenueRange>
        </issuerSize>
        <federalExemptionsExclusions>
            <item>06</item>
        </federalExemptionsExclusions>
        <typeOfFiling>
            <newOrAmendment>
                <isAmendment>false</isAmendment>
            </newOrAmendment>
            <dateOfFirstSale>
                <value>2010-10-26</value>
            </dateOfFirstSale>
        </typeOfFiling>
        <durationOfOffering>
            <moreThanOneYear>false</moreThanOneYear>
        </durationOfOffering>
        <typesOfSecuritiesOffered>
            <isDebtType>true</isDebtType>
        </typesOfSecuritiesOffered>
        <businessCombinationTransaction>
            <isBusinessCombinationTransaction>false</isBusinessCombinationTransaction>
            <clarificationOfResponse></clarificationOfResponse>
        </businessCombinationTransaction>
        <minimumInvestmentAccepted>50000</minimumInvestmentAccepted>
        <salesCompensationList>
            <recipient>
                <recipientName>GVC Capital LLC</recipientName>
                <recipientCRDNumber>38923</recipientCRDNumber>
                <associatedBDName>None</associatedBDName>
                <associatedBDCRDNumber>None</associatedBDCRDNumber>
                <recipientAddress>
                    <street1>5350 South Roslyn Street</street1>
                    <street2>Suite 400</street2>
                    <city>Greenwood Village</city>
                    <stateOrCountry>CO</stateOrCountry>
                    <stateOrCountryDescription>COLORADO</stateOrCountryDescription>
                    <zipCode>80111</zipCode>
                </recipientAddress>
                <statesOfSolicitationList>
                    <state>CA</state>
                    <description>CALIFORNIA</description>
                    <state>CT</state>
                    <description>CONNECTICUT</description>
                    <state>FL</state>
                    <description>FLORIDA</description>
                    <state>GA</state>
                    <description>GEORGIA</description>
                    <state>IL</state>
                    <description>ILLINOIS</description>
                    <state>NJ</state>
                    <description>NEW JERSEY</description>
                    <state>NY</state>
                    <description>NEW YORK</description>
                </statesOfSolicitationList>
                <foreignSolicitation>false</foreignSolicitation>
            </recipient>
            <recipient>
                <recipientName>Cantone Research Inc</recipientName>
                <recipientCRDNumber>26314</recipientCRDNumber>
                <associatedBDName>None</associatedBDName>
                <associatedBDCRDNumber>None</associatedBDCRDNumber>
                <recipientAddress>
                    <street1>766 Shrewsbury Ave</street1>
                    <city>Tinton</city>
                    <stateOrCountry>NJ</stateOrCountry>
                    <stateOrCountryDescription>NEW JERSEY</stateOrCountryDescription>
                    <zipCode>07724</zipCode>
                </recipientAddress>
                <statesOfSolicitationList>
                    <state>CA</state>
                    <description>CALIFORNIA</description>
                    <state>CT</state>
                    <description>CONNECTICUT</description>
                    <state>FL</state>
                    <description>FLORIDA</description>
                    <state>GA</state>
                    <description>GEORGIA</description>
                    <state>IL</state>
                    <description>ILLINOIS</description>
                    <state>NJ</state>
                    <description>NEW JERSEY</description>
                    <state>NY</state>
                    <description>NEW YORK</description>
                </statesOfSolicitationList>
                <foreignSolicitation>false</foreignSolicitation>
            </recipient>
            <recipient>
                <recipientName>C.K. Cooper &amp; Company Inc</recipientName>
                <recipientCRDNumber>106578</recipientCRDNumber>
                <associatedBDName>None</associatedBDName>
                <associatedBDCRDNumber>None</associatedBDCRDNumber>
                <recipientAddress>
                    <street1>18300 Von Karman Ave., Ste. 700</street1>
                    <city>Irvine</city>
                    <stateOrCountry>CA</stateOrCountry>
                    <stateOrCountryDescription>CALIFORNIA</stateOrCountryDescription>
                    <zipCode>92612</zipCode>
                </recipientAddress>
                <statesOfSolicitationList>
                    <state>CA</state>
                    <description>CALIFORNIA</description>
                    <state>CT</state>
                    <description>CONNECTICUT</description>
                    <state>FL</state>
                    <description>FLORIDA</description>
                    <state>GA</state>
                    <description>GEORGIA</description>
                    <state>IL</state>
                    <description>ILLINOIS</description>
                    <state>NJ</state>
                    <description>NEW JERSEY</description>
                    <state>NY</state>
                    <description>NEW YORK</description>
                </statesOfSolicitationList>
                <foreignSolicitation>false</foreignSolicitation>
            </recipient>
        </salesCompensationList>
        <offeringSalesAmounts>
            <totalOfferingAmount>11800000</totalOfferingAmount>
            <totalAmountSold>11800000</totalAmountSold>
            <totalRemaining>0</totalRemaining>
            <clarificationOfResponse></clarificationOfResponse>
        </offeringSalesAmounts>
        <investors>
            <hasNonAccreditedInvestors>false</hasNonAccreditedInvestors>
            <totalNumberAlreadyInvested>18</totalNumberAlreadyInvested>
        </investors>
        <salesCommissionsFindersFees>
            <salesCommissions>
                <dollarAmount>780000</dollarAmount>
                <isEstimate>true</isEstimate>
            </salesCommissions>
            <findersFees>
                <dollarAmount>0</dollarAmount>
            </findersFees>
            <clarificationOfResponse></clarificationOfResponse>
        </salesCommissionsFindersFees>
        <useOfProceeds>
            <grossProceedsUsed>
                <dollarAmount>0</dollarAmount>
            </grossProceedsUsed>
            <clarificationOfResponse></clarificationOfResponse>
        </useOfProceeds>
        <signatureBlock>
            <authorizedRepresentative>false</authorizedRepresentative>
            <signature>
                <issuerName>ADCARE HEALTH SYSTEMS INC</issuerName>
                <signatureName>s/Scott Cunningham</signatureName>
                <nameOfSigner>Scott Cunningham</nameOfSigner>
                <signatureTitle>CFO</signatureTitle>
                <signatureDate>2010-11-02</signatureDate>
            </signature>
        </signatureBlock>
    </offeringData>
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</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----