Overview

The majority of centers in CMS network were established under lease and management services arrangements entered into with hospital partners. Under these lease and management services arrangements, the Company is responsible for purchasing the medical equipment used in the centers. It leases the medical equipment to the hospitals for a fixed period of time and establishes and manages the centers in conjunction with its hospital partners.

The Company provides clinical support services to doctors working in its centers, including organizing joint diagnostic sessions among doctors in its network and clinical research.

CMS has established operating procedures and a comprehensive quality assurance program to ensure that its centers operate efficiently and provide consistent and high-quality services. The operating procedures cover the use and maintenance of the medical equipment and interactions with patients, from initial patient appointment and registration to post-treatment follow-up. The CMS-appointed operations director or project manager of each center is primarily responsible for ensuring the centers' adherence to the Company's operating procedures and comprehensive quality assurance program.

At the corporate level, CMS has established a dedicated operations department to supervise and provide support to ensure the effective operation of each center. It conducts annual evaluations for all centers and unscheduled evaluations for certain randomly selected centers. These evaluations focus on whether the applicable procedures are followed and whether its operating personnel are performing at the expected level. CMS also receives weekly reports on the operating activities for each center, which enable it to identify opportunities for continuous improvement with regards to various aspects of each center's operations.