Graymark Healthcare, Inc. (Graymark) is a diversified healthcare services company, which conducts business in two operating segments, Sleep Management Solutions and Apothecary. Sleep Management Solutions (SMS), is a provider of care management solutions to the sleep disorder market based on number of independent sleep care centers and hospital sleep diagnostic programs operated in the United States. The Company provide a diagnosis and care management solution for patients suffering from sleep disorders. Apothecary operates independent retail pharmacy stores selling prescription drugs, over-the-counter drugs and an assortment of general merchandise. In September 2009, the Company’s SMS segment acquired Avastra Eastern Sleep Centers, Inc. In August 2009, the Company’s SMS segment acquired somniTech, Inc. and somniCare, Inc. (Somni).
The Company’s SMS operating segment provides a diagnosis, and care management solution for the growing population of Americans with sleep disorders. Patients at risk for, or suspected of suffering from, a sleep disorder are referred to one of the Company’s sleep clinics by independent physicians, dentists, group practices or self-referrals. Its sleep clinics consist of two to eight bed facilities. At its sleep clinics, it administers an overnight polysomnogram, or sleep study, to patients, which monitors blood oxygen level, heart rate, respiratory function, brain waves, leg movement and other vital signs through small and painless electrical sensors applied to the patient.
As of December 31, 2009, the Company owned and operated 18 retail pharmacies located in Colorado, Illinois, Missouri, Minnesota, and Oklahoma. The Company’s pharmacy revenue is primarily derived from the retail sale of prescription drugs, non-prescription drugs and health related products.