OKLAHOMA CITY, Feb. 22, 2011 /PRNewswire/ -- Graymark Healthcare Inc. (Nasdaq: GRMH), the nation's second largest provider of diagnostic sleep services and an innovator in comprehensive care for obstructive sleep apnea (OSA), realized a 225% year-over-year increase in patient resupply shipments in January, a record level for what is typically a slow month.
In January, Graymark shipped 659 re-supply parts relating to their Continuous Positive Airway Pressure (CPAP) machines and also realized growth in the number of sleep studies performed through their higher margin outreach programs. The number of sleep therapy setups also increased versus January 2010.
The re-supply portion of Graymark's business is a recurring revenue model. Patients compliant on their CPAP devices receive four shipments of component parts per year.
Graymark's effective five-step clinical approach to managing sleep disorders includes a convenient referral process, accurate and timely assessment, diagnosis, treatment and long-term follow-up to maximize patient compliance. All steps are managed by a board certified Sleep Medicine physician. By more completely integrating the diagnostic and treatment processes, Graymark has substantially improved patient compliance with CPAP care and overall disease management.
"This record January demonstrates the momentum of our comprehensive care model," said Stanton Nelson, chairman and CEO of Graymark Healthcare. "Increasing rates of CPAP re-supply orders and higher margin agreements are key barometers that show we are successfully providing timely and high-quality sleep management programs."
"We improved our platform metrics across the board in spite of January typically being the most challenging due to patient deductibles resetting," Nelson added. "These results benchmark our continued success and validate our organic growth strategy in the fast growing sleep management market."
Graymark is also expected to benefit from a strengthening overall sleep disorder market. A 2010 Frost and Sullivan study forecasts spending on sleep apnea products to grow at a compounded rate of 13% and reach $5.3 billion by 2014.
About Graymark Healthcare
Headquartered in Oklahoma City, Okla., Graymark Healthcare Inc. (Nasdaq: GRMH) is the nation's second largest provider of sleep management solutions. In addition to diagnosing and treating over 80 sleep disorders, the company specializes in comprehensive care for Obstructive Sleep Apnea (OSA). Graymark offers its services through 98 sleep laboratories throughout the United States, including standalone or IDTF facilities, rural outreach sites and hospital or provider agreements. For more information, visit www.graymarkhealthcare.com.
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SOURCE Graymark Healthcare Inc.