OKLAHOMA CITY, Nov. 16, 2010 /PRNewswire-FirstCall/ -- Graymark Healthcare Inc., a NASDAQ-traded company (GRMH), today announced financial results for the quarter ending Sept. 30, 2010, including $5.5 million in sales from continuing operations.
Graymark Healthcare has operated two distinct business segments: One focuses on the diagnosis and treatment of obstructive sleep apnea (OSA), while the other focuses on operating retail pharmacies. In the third quarter Graymark announced the sale of substantially all the assets of its pharmacy operating segment, ApothecaryRx (ARx), to Walgreen Co. for $25.5 million plus the value of certain inventory to be determined at the time of close. Graymark expects the transaction to be complete by Dec. 31, 2010. Beginning in the third quarter of 2010, the operating results of ARx will be reported as discontinued operations.
Graymark Healthcare saw a $0.3 million (7 percent) increase in sales in its continuing operations compared to the same quarter last year, driven by acquisitions completed in the third quarter of 2009. Adjusting for a non-recurring adjustment to contractual allowances in the third quarter of 2009, sales grew $0.9 million (20 percent) over the third quarter of 2009.
Within Graymark Healthcare's sleep apnea segment, the company previously announced a strategic decision to go into third-party payer networks for both diagnostic and therapy services. Historically, Graymark has enjoyed higher reimbursement out-of-network in certain regions but now sees the opportunity for greater volume growth and lower administrative expenses as reasons to move into networks in all areas. Graymark anticipates being in most significant third-party networks by the end of 2010; however, Graymark began to see lower reimbursements from some payers as the company went into network in the third quarter. Additionally, since much of Graymark's accounts receivable continue to be from out-of-network se