Graymark Healthcare's Sleep Apnea Therapy Program Services Record Number of Patients in Q4 2010

OKLAHOMA CITY, Jan. 4, 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), serviced a record number of OSA patients in the fourth quarter of 2010, with a 16% increase in CPAP set-ups and a 75% increase in re-supply shipments, as compared to fourth quarter of 2009.

Graymark specializes in the diagnosis and treatment of sleep apnea, which is characterized by abnormal pauses in breathing during sleep where each pause or "apnea" can last from a few seconds to minutes, and can occur from five to more than 30 times per hour. OSA is the most common form of sleep apnea, where the soft tissue in the airway obstructs breathing. OSA correlates highly with stroke, cardiac disease, obesity and other conditions that lead to early death and morbidity. However, 80% of patients affected by OSA go completely undiagnosed and patient treatment compliance is often a challenge.

In an effort to improve clinical outcomes, Graymark has been pioneering better techniques to more quickly and effectively diagnosis and treat patients diagnosed with OSA. In the fourth quarter of 2009, Graymark Healthcare launched a new comprehensive care model to improve the conversion rate of OSA patients into successfully using a CPAP (Continuous Positive Airway Pressure) device.

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.

"There are many measures for patient compliance used in our industry, but the fact that our patients continue to buy supplies for their CPAP device is the best indicator they are using their device as intended," said Stanton Nelson, chairman and CEO of Graymark Healthcare. "In 2010, we provided initial CPAP set-up for more than 3,000 OSA patients and shipped more than 6,400 CPAP re-supply orders."

The Graymark Healthcare OSA therapy program ensures that patients are effectively supported in their initial use of a CPAP device and that challenges are addressed quickly and effectively to reduce rates of therapy abandonment. Similarly, the CPAP re-supply program provides regular follow-up care and ensures that disposable elements of the CPAP are cleaned and replaced consistent with manufacturer set schedules. Patients who are found not compliant with care are provided additional support to optimize their utilization of the CPAP device.

"The only way to avoid the long-term consequences of obstructive sleep apnea is for patients to consistently use their CPAP device," added Nelson. "The steady flow of re-supply orders reflects that our comprehensive care model improves the likelihood that patients will be compliant. It also demonstrates the strength of the recurring revenue aspect of our business model as we continue to expand the number of our sleep centers across the nation."

About Graymark Healthcare, Inc.

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 narcolepsy, insomnia, and restless leg syndrome, 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.

Important Cautions Regarding Forward Looking Statements

This press release may contain forward-looking statements that are based on the Company's current expectations, forecasts and assumptions. Forward-looking statements involve risks and uncertainties that could cause actual outcomes and results to differ materially from the Company's expectations, forecasts and assumptions. These risks and uncertainties include risks and uncertainties not in the control of the Company, including, without limitation, the current economic climate and other risks and uncertainties, including those enumerated and described in the Company's filings with the Securities and Exchange Commission, which filings are available on the SEC's website at www.sec.gov. Unless otherwise required by law, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE Graymark Healthcare, Inc.

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