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Graymark Healthcare Reports Q3 Financial Results
Date:11/16/2010

rvices, in this quarter the company saw the administrative cost structure of being out-of-network with the revenues of some in-network. Graymark anticipates that the transition will be substantially completed by the end of the first quarter of 2011.

Graymark Healthcare continues to see strong growth in the recurring revenue resupply business, with a 145 percent increase in shipments over the second quarter of 2010. This drove a 12 percent increase in resupply revenue compared to the same period last year.

Graymark Healthcare's diagnostic business saw a 5 percent increase in revenue compared to third quarter 2009, driven by acquisitions during the third quarter of 2009.

Graymark Healthcare's therapy business, which provides continuous positive airway pressure (CPAP) devices and supplies for patients with obstructive sleep apnea, grew 16 percent, adjusted for the non-recurring contractual allowance adjustment in the third quarter of 2009.  Same-store new CPAP set-up volumes were up 18 percent compared to the same period of 2009; however lower average reimbursements resulted in a 7 percent reduction in same-store therapy sales compared to the third quarter of 2009, adjusted for the non-recurring adjustment to contractual allowances in 2009.  

"We are very excited about focusing our efforts exclusively on the diagnosis and treatment of obstructive sleep apnea as we divest the pharmacies and take our position as a national leader in this rapidly growing segment of health care," said Stanton Nelson, chairman and CEO of Graymark Healthcare. "We have seen the impact that our comprehensive care model has on long-term patient CPAP compliance, and we look forward to continuing to care for our patients for years as they and their loved ones enjoy more restful sleep."

Other Business Highlights:  For the third quarter of 2010, income from discontinued operations, net of tax, was a loss of $1.5 million, which includes
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SOURCE Graymark Healthcare Inc.
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