American Shares Hospital Services Announces Joint Venture to Open Gamma Knife Center in Mexico

American Shares Hospital Services (NYSE:AMS) announced a joint venture with Hospital San Javier in Guadalajara, Mexico, to operate a Gamma Knife treatment facility for both public and private cancer patients. AMS will own 70% of the partnership, with the remaining 30% held by HSJ.

Introduction:
American Shared Hospital Services (NYSE: AMS) has recently announced a joint venture with Hospital San Javier in Guadalajara, Mexico, to establish a Gamma Knife treatment facility. The partnership, which will be owned 70% by AMS and 30% by Hospital San Javier, is expected to serve both public and private cancer patients [1]. This marks AMS' first expansion into Mexico, further solidifying its international presence.

Background:
The joint venture agreement comes after AMS signed a similar agreement with the principal owners of Guadalupe Amor Y Bien, a well-established radiation therapy facility in Puebla, Mexico [1]. Under this agreement, AMS will provide a linear accelerator upgrade to an Elekta Versa HD, while Hospital San Javier will be responsible for site modification costs. The Versa HD upgrade is expected to offer multiple treatment techniques, including IMRT, VMAT, SBRT, and Radiosurgery [1].

Opportunities and Benefits:
The introduction of the Versa HD upgrade is anticipated to generate significant demand from the populous region, as it will offer improved patient outcomes through the use of IMRT and provide the first and only access to certain treatment modalities in the area [1]. Ray Stachowiak, CEO of AMS, expressed his excitement about the expansion, stating, "This is an exciting transaction for AMS, and the first expansion of our international strategy into Mexico" [1]. Ernest R. Bates, SVP of Sales and Business Development at AMS, further emphasized the competitive advantage of offering additional treatment modalities, stating, "The ability to offer additional treatment modalities to the region is expected to be a significant competitive advantage" [1].

Conclusion:
American Shared Hospital Services' recent joint venture with Hospital San Javier in Guadalajara, Mexico, marks the company's first expansion into the country and further solidifies its international presence. The upgrade to the Versa HD is expected to offer improved patient outcomes and provide the first access to certain treatment modalities in the region, generating significant demand and offering a competitive advantage.

References:
[1] GlobeNewswire. (2022, April 29). American-Shared Hospital Services Announces Signing of Joint Venture Agreement for Radiation Therapy Facility in Puebla, Mexico. https://www.globenewswire.com/news-release/2022/04/29/2432513/0/en/American-Shared-Hospital-Services-Announces-Signing-of-Joint-Venture-Agreement-for-Radiation-Therapy-Facility-in-Puebla-Mexico.html