American Shared Hospital Services Announces Official Notice of Certificate of Need Approval to Acquire the Technology to Construct and Operate a Proton Beam Radiation Therapy Facility in the State of Rhode Island
December 17 2024 - 7:00AM
American Shared Hospital Services (NYSE American: AMS) (the
“Company” or “AMS”), a leading provider of turnkey technology
solutions for stereotactic radiosurgery and advanced radiation
therapy cancer treatment systems and services, today announced that
its wholly owned subsidiary, ASHS – Rhode Island Proton Beam
Radiation Therapy, LLC, has officially obtained a Certificate of
Need (CON) to acquire the technology necessary to construct and
operate a freestanding Proton Beam Radiation Treatment (PBRT)
system in Johnston, Rhode Island.
Following the unanimous positive recommendation
by the Health Service Council, the Director of the Rhode Island
Department of Health accepted the recommendation of the Health
Service Council to grant the CON.
Ray Stachowiak, Executive Chairman and CEO of
the Company, commented,
“We are honored to have received this CON, as it
gives us the opportunity to provide the physicians who comprise the
Rhode Island cancer care community with the most highly
sophisticated radiation therapy technology that exists, enabling
Rhode Island cancer care providers to provide a continuum of
coordinated comprehensive cancer care to their patients. We
anticipate this facility being built and treating its first
patients in 36 – 39 months. Once this occurs, Rhode Island
residents whose physicians determine that their cancer can best be
treated with proton therapy will no longer have to travel to Boston
or New York to seek their care.
This facility would be our latest addition to
the three Rhode Island photon radiation therapy facilities, in
which AMS is the 60% majority owner in conjunction with the second
and third largest health systems in RI. In addition, in April of
2024 a CON was granted to ASHS - Bristol Radiation Therapy, LLC a
wholly owned subsidiary of AMS, that brings much needed radiation
therapy to the underserved East Bay of Rhode Island augmenting our
integrated network of strategic and conveniently located radiation
therapy facilities in Rhode Island.”
Greg Mercurio, Sr Vice President of Radiation
Oncology for AMS, a resident of RI, and a proven leader in
advancing access to cancer care in Rhode Island, commented that
“bringing proton therapy to Rhode Island will be a significant
investment and great technological advancement in cancer care in
Rhode Island.
The achievement of this CON is one of the three
unique and local business opportunities we focused on and have
successfully achieved and represents a potential growth driver for
AMS locally and nationally. Currently, there are only two Proton
Beam Radiation Therapy Systems in operation in the Northeast, and
this facility, being conveniently located between the New York City
and Boston Proton facilities, would create greater access to this
cutting-edge, cancer-fighting technology in the Northeast.”
Ray Stachowiak concluded by noting that “to
assist with these initiatives, the Company has recently added
executives to its senior management team with many years of
expertise and success in the development, acquisition, and
operation of free-standing radiation therapy facilities, as well as
partnering with health systems to grow their oncology service
lines.”
About American Shared Hospital Services (NYSE
American: AMS)
AMS has been in operation for 40 years, has been
a publicly traded company since 1984 and is a leading provider of
creative financial and turnkey solutions to cancer treatment
centers, hospitals, and large cancer networks worldwide. The
company works closely with all major global Original Equipment
Manufacturers (OEMs) that provide leading edge clinical treatment
systems and software to treat cancer using radiation therapy and
radiosurgery. The Company is vendor agnostic and provides financial
support for a wide range of radiation therapy technology including
linear accelerators, Proton Beam Radiation Therapy Systems,
Brachytherapy systems and suites, and through the Company’s
subsidiary, GK Financing LLC., the Leksell Gamma Knife product and
services. As a result of a strategic initiative to acquire the
majority equity interest in the RI radiation therapy facilities in
May 2024, AMS has expanded its US business model from that of a
supplier of technology to health care systems to that of a direct
provider of cancer care to patients utilizing the latest radiation
therapy technology.
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 including statements regarding the
expected continued growth of the Company and the expansion of the
Company’s Gamma Knife, proton therapy and MR/LINAC business, which
involve risks and uncertainties including, but not limited to, the
risks of economic and market conditions, the risks of variability
of financial results between quarters, the risks of the Gamma Knife
and proton therapy businesses, the risks of changes to CMS
reimbursement rates or reimbursement methodology, the risks of the
timing, financing, and operations of the Company’s Gamma Knife,
proton therapy, and MR/LINAC businesses, the risk of expanding
within or into new markets, the risk that the integration or
continued operation of acquired businesses could adversely affect
financial results and the risk that current and future acquisitions
may negatively affect the Company’s financial position. 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 Quarterly Reports on Form 10-Q for the three month
periods ended March 31, 2024, June 30, 2024 and September 30, 2024,
the Annual Report on Form 10-K for the year ended December 31,
2023, and the definitive Proxy Statement for the Annual Meeting of
Shareholders that was held on June 25, 2024.
Contacts:
American Shared Hospital ServicesRay Stachowiak, Executive
Chairman and CEOrstachowiak@ashs.com
Investor Relations:
Kirin SmithPCG Advisory, Inc. ksmith@pcgadvisory.com
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