Magazine article Black Enterprise

The Right Course for Healthy Returns: American Shared Hospital Services Is Set for Future Growth

Magazine article Black Enterprise

The Right Course for Healthy Returns: American Shared Hospital Services Is Set for Future Growth

Article excerpt

During the '60s and '70s, colleagues deemed Dr. Ernest Bates brilliant and creative because of his successful San Francisco neurosurgery practice. Today, they refer to him as a visionary entrepreneur and shrewd investor.

The founder of American Shared Hospital Services (ASHS), Bates has recently set his sights on the operating room for the 21st century. His company, which leases medical equipment, is helping to reengineer the entire surgical operating suite with laser surgical tools, robotics and other major new technology.

In 1983, Bates incorporated ASHS to provide diagnostic imaging and radiotherapy services to hospitals, medical centers, clinics and physician's offices in 22 states. Despite doubting peers, he pursued the commercial potential of mobile magnetic resonance Imaging units. MRI utilizes magnetic fields and applied radio waves to obtain computer-processed cross-sectional images of the body. A year later, ASHS went public, trading at $5 a share.

ASHS's profits increased each year as medical facilities became increasingly dependent upon the company's equipment for early detection of diseases and disorders. Clients were able to avoid the high cost of owning the specialized equipment by renting it on an as-needed basis; rather than hiring staff technicians, they could use personnel provided by ASHS.

ASHS's profits started to plummet in 1990 as clients began to take advantage of attractive discounts and favorable purchase options offered by competing medical equipment manufacturers. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.