For more information
Ernest A. Bates, M.D., Chairman and CEO
San Francisco, CA, April 25, 2013 -- AMERICAN SHARED HOSPITAL SERVICES (NYSE MKT:AMS), a leading provider of turnkey technology solutions for advanced radiosurgical and radiation therapy services, announced today that it has launched a program to reduce future cash outlays by approximately $1,000,000 annually once all steps are fully implemented over the next few months.
Chairman and Chief Executive Officer Ernest A. Bates, M.D., said, "As the country's largest provider of Gamma Knife® services, we expect the sudden and unprecedented reduction in Medicare reimbursement for Gamma Knife procedures imposed under Provision 634 of the American Taxpayer Relief Act of 2012 to have a significant impact on AMS, at least in the short term. AMS and other affected parties are working vigorously to mitigate the impact of Provision 634. In the meantime, we are taking appropriate steps to offset its impact through aggressive cost reductions. In addition to salary cuts for our senior executives, the estimated $1,000,000 in annual cash savings we are announcing today include reduced fees we have negotiated with our vendors, the subleasing of a portion of our office space, and the refinancing of certain of our existing equipment loans and leases. We are carefully evaluating opportunities for additional savings. I am pleased by the spirit of co-operation shown by all parties affected by this program, and confident in AMS' future."About AMS
American Shared Hospital Services provides turnkey technology solutions for advanced radiosurgical and radiation therapy services. AMS is the world leader in providing Gamma Knife radiosurgery equipment, a non-invasive treatment for malignant and benign brain tumors, vascular malformations and trigeminal neuralgia (facial pain). The Company also offers the latest IGRT and IMRT systems, as well as its proprietary Operating Room for the 21st CenturySM concept. AMS owns a preferred stock investment in Mevion Medical Systems, Inc., developer of the compact MEVION S250 Proton Therapy System.Safe Harbor Statement
This press release may be deemed to contain certain forward-looking statements with respect to the financial condition, results of operations and future plans of American Shared Hospital Services, which involve risks and uncertainties including, but not limited to, the risks of the Gamma Knife and radiation therapy businesses, the risks of developing The Operating Room for the 21st Century program, the risks of investing in a development-stage company, Mevion Medical Systems, Inc., without a proven product, and the risk that all desired cost savings may not be achieved. Further information on potential factors that could affect the financial condition, results of operations and future plans of American Shared Hospital Services is included in the filings of the Company with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2012.Back to Top