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

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

Ernest A. Bates, M.D., (415) 788-5300Chairman and Chief Executive OfficerorNeil Berkman, (310) 477-3118President

, 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."

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 Century concept. AMS owns a preferred stock investment in Mevion Medical Systems, Inc., developer of the compact MEVION S250 Proton Therapy System.

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