American Shared Hospital Services Launches Program to Reduce Future Cash Outlays by $1 Million Annually
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.
