American Shared Hospital Services (AMS) announced that its Chief Executive Officer, Gary Delanois, will resign effective April 24 2026, and that long‑time executive Craig K. Tagawa will step in as interim CEO on April 27 2026. Tagawa has served AMS since 1988 and has held senior roles as COO and CFO, positioning him to provide continuity during the company’s strategic pivot.
The resignation comes as AMS completes a transition from an equipment‑leasing model to a patient‑services platform. In the fourth quarter of 2025, the company reported a net loss of $631,000 ($0.09 per diluted share), a significant improvement from the $1.6 million loss ($0.23 per diluted share) reported for the same period a year earlier. Gross margin fell sharply to 12% from 35% in Q4 2024, reflecting lower treatment volumes and a shift in revenue mix toward higher‑cost patient services.
Segment data show that direct patient care services revenue grew 23.7% to $15.5 million, while leasing revenue declined to $12.6 million. The mix shift explains the margin compression, as patient‑service revenue carries lower gross margins than the legacy leasing business. The company’s financial statements also reveal a covenant breach and a warning of “substantial doubt about our ability to continue as a going‑concern” if the issues are not resolved.
AMS is pursuing international expansion, adding facilities in Mexico’s Puebla and Guadalajara and maintaining Gamma Knife centers in Peru and Ecuador. The company plans to open a Bristol facility in late 2027 and a Rhode Island proton center in 2028, signaling a long‑term growth strategy that relies on expanding its patient‑services footprint.
Management has emphasized the need for disciplined cost control and operational scaling to support the new business model. While the company faces short‑term headwinds from covenant breaches and margin pressure, it remains focused on building a sustainable patient‑services platform that can generate recurring revenue and support future capital deployment.
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