Gracey received his early education and bachelors degree from Coe College, Cedar Rapids, Iowa, and subsequently Master of Science degree from the University of Minnesota, Following a Doctor of Medicine degree from Northwestern University. Post graduate training at Cook County Hospital in Chicago and the Mayo Clinic in Rochester, Minnesota were followed by a two year tour of duty in the United State Air Force early in the Vietnam War. Today Dr. Gracey is Chair of the Division of Pulmonary and Critical Care Medicine at the Mayo Clinic in Rochester.