OKLAHOMA CITY, March 28, 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), reported financial results for the fiscal year
ended December 31, 2010.
Net revenues in 2010 increased 30% to $22.8 million from $17.6
million in 2009 (as adjusted for the discontinued operations of the
company’s retail pharmacy business). The annual increase is
primarily attributable to realizing a full year of operating
revenue amounting to $6.7 million from the Somni and Eastern
acquisitions completed in August and September of 2009,
respectively.
Revenue from the company’s sleep diagnostic business increased
27% to $17.2 million in 2010 from $13.5 million in 2009. The
increase was primarily attributable to the 2009 acquisitions,
partially offset by lower revenue from existing operations. The
lower revenue was due to the company’s previously announced
strategy to transition from being an out-of-network provider to
entering into in-network agreements with third-party payers. This
transition provides Graymark the opportunity to lower
administrative expenses and accelerate the receipt of reimbursement
payments, resulting in improved cash flow. Additionally, the
company believes that by significantly lowering patient out of
pocket costs as a result of being in-network, Graymark will also be
able to increase the volume of patients serviced at the company’s
independent sleep care centers. This transition is expected to be
completed by the end of the first quarter of 2012.
Revenue from Graymark’s sleep therapy business in 2010 increased
37% to $5.6 million from $4.0 million in 2009. In addition to
contributions from the 2009 acquisitions, the annual increase was
attributable to increases in both setup and resupply volumes, with
resuppl
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