April 2010 Archives

The U.S. market for sleep apnea diagnostic and therapeutic devices is rapidly expanding and attempts to address a patient population that is becoming increasingly diverse. Even with the economic challenges within the healthcare market over the past 18 months, this segment of the industry has remained resilient.

Multiple variables influence success in this market, and the competitive advantage has not always been centered on technology. New product designs are launched at a feverish pace, and success is based on possession of a broad product line and established sales channels. Competitive advantages based on technology have historically been quickly matched or overcome by competitors.

Frost & Sullivan (www.patientmonitoring.frost.com) finds U.S. revenues in the sleep apnea diagnostic and therapeutic devices market totaled approximately $1.35 billion in 2008, with a 16.2 percent growth rate. Revenues expect to increase within the next few years due to the expansion of the installed base and increased awareness in obstructive sleep apnea, after which growth is likely to moderately stabilize. Also included are further breakouts within the diagnostic and therapeutic markets containing revenues, units, and resulting growth rates forecasting through 2015.

The largest factors for growth in this market are the expanding number of sleep apnea product users, the evolving patient mix, increasing obesity trends, greater awareness and appreciation for the benefits of sleep apnea treatment, and a steady growth of sleep service providers.

"The patient population for this segment of the market is becoming more diverse as its use and acceptability expands," notes Frost & Sullivan Research Analyst Gary Burk. "Preparation and proper planning to navigate the future landscape of this environment will directly compete with future cutting-edge technology."

The greatest restraints in this market include a high degree of competition, the ever-evolving competitive bidding and reimbursement process, the future of healthcare reform, and patient compliance.

"As with any rapidly expanding market, the ability to address and navigate these challenges will not ensure success or guarantee profitability," continues Burk.

If you are interested in more information on this study, please send an e-mail to Johanna Haynes, Corporate Communications, at johanna.haynes@frost.com, with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country.

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 40 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com.

The Wireless-Life Sciences Alliance (WLSA) is now accepting registrations for its fifth Annual WLSA Convergence Summit, a three-day conference sponsored by the premier non-profit trade organization dedicated solely to creating value and improving health through wireless communications technologies. The conference is scheduled for May 11-13 at Estancia Hotel & Spa, La Jolla, California.

This unique conference between the leadership of wireless companies, global product companies, consumers, payors, providers and service organizations, offers attendees the distinct opportunity to discuss the most significant emerging market trends, address and propose solutions to industry issues, create new partnerships and demonstrate new solutions - all in one exclusive venue.

Among the organizations presenting are senior management from WLSA members, including Ascension Health, AT&T, CareFusion, Johnson & Johnson, OptumHealth, QUALCOMM and St. Jude Medical, who will provide insights into their interest in the field and best practices for incorporating innovative, new wireless technologies into new products, applications and services, as well as how to bring these to providers and patients.  

"WLSA created the Convergence Summit to bring key elements of the wireless health community together to meet, share ideas and demonstrate new products and solutions," said Robert B. McCray, WLSA President & CEO. "Our goal is to provide a forum that directly addresses emerging wireless technology in healthcare and enables participants to gain a thorough understanding of how to succeed in this dynamic market."

The event begins with the Investor's Meeting and Triple Tree I Award Program for Wireless-Life Sciences Alliance® on Day 1, followed by the WLSA Convergence Summit on Day 2, and ends with Commercialization Day on Day 3.

The Summit's first day (May 11) features the Investors' Meeting, an invitational event for qualified investors, WLSA partners, and I Award finalists. A limited number of seats are open to the public.  Keynote speakers on Day 1 will include Terrance H. Gregg, President & CEO, DexCom, Inc., and Dr. Mohit Kaushal, Director of Connected Health, FCC Omnibus Broadband Initiative.  Additionally, winners of the prestigious I Award, which recognizes companies for Best Operational Effectiveness Solution, Best Clinical Solution, and Best Consumer Experience Solution, will be announced.  Award finalists include technologies such as remote monitoring technologies, home healthcare solutions, advanced imaging software, cloud computing and personal health improvement opportunities.  Twelve finalists were chosen through a competitive process from approximately 50 applicants.

The second day (May 12) is reserved for the Convergence Summit, an invitation-only program for C-level executives from WLSA members and featuring presentations by attendees and moderated conversations between executive leadership and thought leaders within the wireless, healthcare and convergence spaces. Among the themes and questions to be addressed are:

• How can we convince physicians to adopt wireless and connected health innovation in the delivery of their services?
• How can the U.S. healthcare innovation community learn from the "frugal innovation" of India and China?
• Where can we find significant adoption of wireless health innovation?
• How can we apply the lessons of online commerce, like Amazon.com, to wireless health?
• Is Moore's Law coming to healthcare? Can we leverage the cost curve to reduce the cost of delivering more healthcare to more consumers?
• Does clinical innovation and business monetization need to begin in the United States or will U.S. companies increasingly look to international markets?

The third day of the Summit, Commercialization Day, is open for general registration, and features workshops facilitated by IDEO and Insight Product Development aimed at identifying solutions to numerous industry challenges, including the clinical validation of new technologies and tech-enabled services; modification of healthcare business and payment models to support opportunities; and seamless integration of products into consumers' and patients' daily lives.

Showcased during the day will be:

• IDEO- and Insight-hosted interactive workshops focusing on issues associated with innovative approaches to product definition, business monetization and go-to-market strategies.  
• These workshops will utilize actual case studies from pressing social challenges, such as teen obesity and sleep disorders, for context. Participants will leave with a toolkit of techniques that can be applied to any complex problem, system or workflow.
• WLSA partners and others will share their products and services during an end-of-the-day demo and reception.

Throughout all three days of the Summit, global leaders in wireless healthcare and life sciences industries will staff demo booths that provide product demonstrations and informative presentations.

"The entire conference will leverage the experiences and processes from other industries to mitigate risk in our industry," McCray said. "The sessions are designed to lead attendees toward true innovation and to provide real value to their organizations.  It is our insight that the initial shape of an important new market is driven by a relatively small number of committed organizations and thought leaders.  Our meetings are designed to identify and bring the best wireless health leaders together in a quality setting to enhance their discovery of business partners."

For information or to register for WLSA's 5th Annual Summit, visit www.wirelesslifesciences.org.

It's an unforgettable scene in "The Blind Side," when the future NFL star Michael Oher tells his benefactor - played by Academy Award winning actress Sandra Bullock - that he's never had a bed of his own before.  One in 50 children is homeless in the United States every year, according to a report from The National Center on Family Homelessness, which estimates more than 1.5 million children are without a home.(1.) Moreover, the agency predicts that as foreclosures and layoffs continue, the number of children and families without homes in the United States is likely to increase.

In an effort to provide those in need with a good night's sleep, 1800Mattress.com, a family-owned national mattress company, is taking a leadership role by partnering with HomeAid, the leading national non-profit provider of housing for today's homeless, to provide more than 500 beds to shelters nationwide.

"At 1800Mattress.com, we believe that everyone is entitled to a good night's sleep and we are proud to support HomeAid as they conquer homelessness one build at a time," said Adam Blank, 1800Mattress.com's Chief Operating Officer.  "A sound night's sleep starts with a great mattress and we are dedicated to providing those in need with a place to sleep at night while they rebuild their lives during the day."

While 1800Mattress.com has already provided beds to HomeAid projects in Orange County, CA, and Houston, the partnership officially begins at HomeAid Atlanta's Phoenix Pass build in Atlanta, Georgia.  A dedication ceremony for the Phoenix Pass project, one of HomeAid's largest projects, is set for April 14 with support from former Atlanta Mayor, Shirley Franklin.  The report by the National Center on Family Homelessness, which analyzed data from 2005-06, found that Georgia was one of the states most affected by child homelessness.

"We are grateful for the support of 1800Mattress.com as 2010 is poised to be a busy year for our chapters nationwide," said Jeffrey Slavin, CEO of HomeAid. "The folks in our shelters list a bed as one of the comforts of home that they miss the most, so we are excited to help them rest easier via this partnership."

HomeAid was founded in 1989. The HomeAid mission is to build and maintain dignified housing where homeless families and individuals can rebuild their lives. This is accomplished through the donation of construction services and materials from members of the homebuilding industry.  To date, the organization has provided transitional housing for more than 100,000 individuals including those temporarily out of work, abused children, victims of domestic violence, at-risk teens, people living with HIV/AIDS and victims of natural disasters.  HomeAid currently has projects in 15 states nationwide.

About Phoenix Pass:

Phoenix Pass is a nonprofit organization designed as a partnership between First Baptist Church of Conyers and Rockdale Emergency Relief.  The mission of Phoenix Pass is to serve the needs of families experiencing temporary homelessness by giving them an opportunity to reestablish self-sufficiency in a residential setting. The focus of the program is to empower homeless families with supportive services and the resources to recover and rebuild a productive, stable lifestyle for themselves and their family.  Phoenix Pass operates under the vision that those who have successfully completed the program will remain in the Conyers-Rockdale County area to live, work and contribute back to the community the education, life skills and job skills acquired during their tenure in the program.  It is expected that residents will transition from Phoenix Pass into the community as productive and self-sufficient citizens.  

The Phoenix Pass complex will eventually accommodate up to 90 people at any given time, providing housing for up to two years along with case management, a mentorship program, life skills classes and aftercare programs.  Phoenix Pass is located on the campus of Light House Village in Conyers, and is one of three nonprofit programs on the 27-acre campus. 

For some, the phrase "spring is in the air" is quite literal. When the winter snow melts and flowers bloom, pollen and other materials can wreak havoc on those suffering from seasonal allergies, usually causing a habit called "mouth breathing." The physical, medical and social problems associated with mouth breathing are not recognized by most health care professionals, according to a study published in the January/February 2010 issue of General Dentistry, the peer-reviewed clinical journal of the Academy of General Dentistry (AGD).

Dentists typically request that their patients return every six months, which means that some people see their dentist more frequently than they see their physician. As a result, dentists may be the first to identify the symptoms of mouth breathing. And, because dentists understand the problems associated with mouth breathing, they can help prevent the adverse effects.

"Allergies can cause upper airway obstruction, or mouth breathing, in patients," said Yosh Jefferson, DMD, author of the study. "Almost every family has someone with mouth breathing problems."

Over time, children whose mouth breathing goes untreated may suffer from abnormal facial and dental development, such as long, narrow faces and mouths, gummy smiles, gingivitis and crooked teeth. The poor sleeping habits that result from mouth breathing can adversely affect growth and academic performance. As Dr. Jefferson notes in his article, "Many of these children are misdiagnosed with attention deficit disorder (ADD) and hyperactivity." In addition, mouth breathing can cause poor oxygen concentration in the bloodstream, which can cause high blood pressure, heart problems, sleep apnea and other medical issues.

"Children who mouth breathe typically do not sleep well, causing them to be tired during the day and possibly unable to concentrate on academics," Dr. Jefferson said. "If the child becomes frustrated in school, he or she may exhibit behavioral problems."

Treatment for mouth breathing is available and can be beneficial for children if the condition is caught early. A dentist can check for mouth breathing symptoms and swollen tonsils. If tonsils and/or adenoids are swollen, they can be surgically removed by an ear-nose-throat (ENT) specialist. If the face and mouth are narrow, dentists can use expansion appliances to help widen the sinuses and open nasal airway passages.

"After surgery and/or orthodontic intervention, many patients show improvement in behavior, energy level, academic performance, peer acceptance and growth," says Leslie Grant, DDS, spokesperson for the AGD. "Seeking treatment for mouth breathing can significantly improve quality of life."

At this time, many health care professionals are not aware of the health problems associated with mouth breathing. If you or your child suffers from this condition, speak with a health care professional who is knowledgeable about mouth breathing.

To learn more about oral health, visit www.KnowYourTeeth.com.

The Academy of General Dentistry (AGD) is a professional association of more than 35,000 general dentists dedicated to staying up to date in the profession through continuing education. Founded in 1952, the AGD has grown to become the second-largest dental association in the United States, and it is the only association that exclusively represents the needs and interest of general dentists. More than 772,000 persons are employed directly in the field of dentistry. A general dentist is the primary care provider for patients of all ages and is responsible for the diagnosis, treatment, management and overall coordination of services related to patients' oral health needs. For more information about the AGD, please visit www.agd.org.

Graymark Healthcare, Inc. (Nasdaq: GRMH) today announced progress on Fiscal 2009 Initiatives and financial results for the year ending December 31, 2009.

In 2009 Graymark Healthcare implemented a core market changing strategy where it integrated the diagnostic and treatment components of care for Obstructive Sleep Apnea.  While the industry has historically managed these components separately, Graymark recognized the clinical requirement that they be integrated in order to optimize patients' compliance with care.  In 2009 the Company integrated the business components wherever feasible and has shown industry leading compliance rates as a result.

Additionally, fiscal year 2009 was highlighted by two significant acquisitions in late Q3 that nearly doubled the size of the Company's SMS segment.  These acquisitions reflected the Company's stated strategy of being a key aggregator of well run assets in the sleep diagnostic and treatment space.

With the addition of the acquired businesses the Company had sufficient scale in its SMS segment to develop central, standardized core services including billing and collection, IT, marketing, HR and Business Development.  These services will allow the Company to acquire quickly and integrate efficiently ensuring that acquisition synergies are maximally realized.  

As a result of such centralized, standardized core services, at the end of 2009 management was able to identify cost cutting measures of over $1 million on an annualized basis.  These cost saving are being fully implement in the first quarter of 2010, and additional efficiencies are also being examined.

"Although others might have been focused purely on the current period, we recognized the need in 2009 to focus on building an infrastructure that would allow us to optimize the opportunity we see to aggregate the sleep diagnostic and treatment space," said Stanton Nelson, Chairman and CEO of Graymark Healthcare.  "Industry consolidation can only be successful if the acquiring entity possesses best demonstrated operating practices and the leadership to quickly integrate those practices within acquired entities while maintaining a high level of quality clinical practice, customer service and staff morale.  We are happy with our progress in 2009 and are looking forward to driving consolidation in the marketplace with our quality and efficiency in 2010 and beyond.  We can now demonstrate leadership in quality of care combined with an optimized cost to serve."  Nelson continued.

For 2009, consolidated net revenues were $107.2 million, an increase of 11% over 2008 revenue of $96.6 million.  This included a net revenue increase of 16% for the Company's Sleep Management Solutions or SMS segment, comprised of our sleep diagnostic and sleep therapy business to $17.6 million in 2009 from $15.2 million in 2008 and an increase of 10% for the Company's ApothecaryRx segment, which owns and operates independent retail pharmacies, to $89.7 million for 2009, from 2008 revenue of $81.3 million.

After-tax net loss attributable to Graymark was approximately ($5.2 million) for 2009, or a loss of ($0.18) per diluted share, compared to net income of $0.7 million, or $0.03 per diluted share for 2008.  Included in the net loss for 2009 are expenses of $0.5 million related to the acquisitions we made during the third quarter and the change in accounting estimate in the second quarter of $2.6 million, as well as a onetime expense reduction related to a legal settlement net of related legal fees of $0.4 million.

The increase in net revenue for the SMS segment was due primarily to a $4.0 million contribution from the Somni and Eastern Q3 acquisitions and $2.3 million in incremental revenue from new sleep labs acquired or opened in 2008 and 2009.  These increases were offset by a decrease in same store revenues of $4.0 million, which is due to a combination of lower volumes and lower average revenue per sleep study compared to 2008.  Revenue in our existing sleep therapy business was flat in 2009 compared to 2008 as lower sleep study volumes translated to fewer CPAP set-ups in 2009.  The reduced set-up volume was offset by the successful growth of our PRSP or re-supply business which we instituted in 2009.  Gross margin for the Company's SMS segment was 56%, compared to 62% in 2008; the decrease driven primarily by the lower average net revenue per sleep study in 2009.  2009 net loss for SMS was ($4.0 million) compared to net income of $1.9 million for 2008.  The onetime adjustment related to the change in accounting estimate of $2.6 million was recorded in our SMS segment.

The increase in revenue for the ApothecaryRx segment was primarily due to the full year impact of pharmacies acquired in March and June of 2008, partially offset by a slight decline in same store revenues driven by the continued shift towards generic drugs, which have a lower revenue per script compared to brand, and a decline in front-end sales, which we attribute to the continued softness in the general economy driving lower discretionary purchases.  Gross margin for the ApothecaryRx segment was 24% in both 2009 and 2008.  2009 net income for ApothecaryRx increased 126% to $2.0 million compared to $0.9 million in 2008.  The $0.4 million onetime favorable legal settlement net of legal fees was in this segment.  During 2009, Graymark Healthcare owned and operated 18 retail pharmacies in five states.  

Graymark Healthcare, Inc. is a diversified medical holding company that owns and operates diagnostic sleep centers that treat a wide range of sleep disorders; independent pharmacies that serve the needs of local markets; and a medical equipment company that provides both disposable and durable medical equipment.  Graymark plans to continue its growth both internally and through strategic acquisitions within the medical industry.