8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest reported) December 18, 2008

AMERICAN SHARED HOSPITAL SERVICES

(Exact name of registrant as specified in its chapter)

California
(State or other jurisdiction
of incorporation) 1-08789
(Commission
File Number) 94-2918118
(IRS Employer
Identification No.)

Four Embarcadero Center, Suite 3700, San Francisco, CA
(Address of principal executive offices) 94111
(Zip Code)

Registrant’s telephone number, including area code 415-788-5300

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o      Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o      Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o      Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o      Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 8.01 OTHER EVENTS

On December 18, 2008, the Company issued a press release announcing it has entered into an agreement with Kettering Medical Center for a Leksell Gamma Knife® Perfexion™. The full text of the press release is attached hereto as Exhibit 99.1. The Company does not intend for this exhibit to be incorporated by reference into future filings under the Securities Exchange Act of 1934.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

(a)	Not applicable.
(b)	Not applicable.
(c)	Exhibits

The following exhibit is filed as part of this report:

99.1 Kettering Perfexion Press Release, dated 12/18/08

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: December 18, 2008	American Shared Hospital Services
	By:	/s/ Ernest A. Bates, M.D.
		Ernest A. Bates, M.D.
		Chairman and CEO

EX-99.1

Exhibit 99.1

AMERICAN SHARED HOSPITAL SERVICES ANNOUNCES
CONTRACT TO SUPPLY A LEKSELL GAMMA KNIFE PERFEXION SYSTEM
TO KETTERING MEDICAL CENTER IN OHIO

San Francisco, CA, December 18, 2008 — AMERICAN SHARED HOSPITAL SERVICES (AMEX:AMS), a leading provider of turnkey technology solutions for advanced radiosurgical and radiation therapy services, announced today that it has entered into a contract to supply a Leksell Gamma Knife^® Perfexion^TM system to Kettering Medical Center, Kettering Ohio. This new Perfexion system, the sixth placed by AMS to date, will replace an existing Gamma Knife supplied by AMS and is expected to begin treating patients in the first half of 2009.

“Kettering Medical Center is renowned for bringing the latest medical technology to patients in southwest Ohio. We are especially pleased to be one of the first cancer centers in the United States to offer the Leksell Gamma Knife Perfexion system, which refines and expands the therapeutic potential for radiosurgery procedures in the brain, skull, cervical spine and head & neck regions and is widely regarded as the most advanced stereotactic radiosurgery system available today,” said Walter Sackett, Vice President of Clinical Services for Kettering Medical Center.

AMS Chairman and Chief Executive Officer Ernest A. Bates, M.D., said, “Kettering Medical Center has been a Gamma Knife customer of ours for many years. We are pleased that our creative financing solutions have made possible this upgrade to next-generation radiosurgery technology at an affordable price.”

About Leksell Gamma Knife Perfexion

Leksell Gamma Knife Perfexion maintains full clinical compatibility with the classic Leksell Gamma Knife and is supported by efficacy and outcome data from 400,000 treated patients worldwide and thousands of peer-reviewed scientific articles, making it a proven choice for radiosurgery of the brain. According to Elekta, Leksell Gamma Knife Perfexion reduces unwanted body dose to the patient by up to 100 times compared with competing technologies, which is particularly important for treatment of children and women of childbearing age, and allows for a dramatically increased treatable volume, which is expected to increase the number of patients that can benefit from Gamma Knife surgery. Elekta estimates that the fully automated and efficient single push-button approach can save 3-5 working weeks of physician time per year at an average Gamma Knife center.

About AMS

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. Through its preferred stock investment in Still River Systems, AMS also plans to complement these services with the Monarch 250^TM proton beam radiation therapy (PBRT) system, which has not yet been approved by the FDA.

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, which involve risks and uncertainties including, but not limited to, the risks of the Gamma Knife and radiation therapy businesses, the risks of developing The Operating Room for the 21st Century program, and the risks of investing in a development-stage company, Still River Systems, Inc., without a proven product. 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 Annual Report on Form 10-K for the year ended December 31, 2007, the Quarterly Report on Form 10-Q for the quarters ended March 31, 2008, June 30, 2008 and September 30, 2008, and the definitive Proxy Statement for the Annual Meeting of Shareholders held on June 20, 2008.

Contacts:	American Shared Hospital Services Ernest A. Bates, M.D., (415) 788-5300 Chairman and Chief Executive Officer eabates@ashs.com
	Berkman Associates Neil Berkman, (310) 826-5051 President info@berkmanassociates.com