Graymark Healthcare, Inc. (GRMH) Reports 107% Increase in Resupply Shipments for Q1
Graymark Healthcare, Inc., the nation’s second largest provider of diagnostic sleep services and an innovator in comprehensive care for obstructive sleep apnea (OSA), today posted more than 100 percent increase in patient resupply shipments.
In the first quarter of 2011, Graymark said it shipped 2,244 resupply packages relating to its Continuous Positive Airway Pressure (CPAP) machines, compared to 1,084 in the same year-ago quarter and 2,220 in the previous quarter.
The company said the increase is due to a growing rate in the number of sleep studies performed through the company’s higher margin outreach program. Sleep therapy setups also increased, up 10 percent from the year-ago quarter, from 620 to 680 in the first quarter of 2011.
“Building upon the record January we previously reported, the remainder of the quarter finished strong,” Stanton Nelson, chairman and CEO of Graymark Healthcare stated in the press release. “We improved platform metrics across the board despite this quarter typically being the most challenging due to the resetting of patient deductibles. These results validate the strength of our organic growth strategy in the fast growing sleep management market, especially how we overcame the typical adverse seasonal factors by surpassing the fourth quarter of 2010.”
The company’s resupply portion of the business is a significant source of recurring revenue since patients compliant on their CPAP devices generally receive four shipments of maintenance supplies each year.
“It’s important to note that increasing rates of CPAP resupply orders and higher margin agreements are key barometers for how we are successfully providing timely and high-quality sleep management programs,” added Nelson. “This record quarter demonstrates momentum in our comprehensive care model.”
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