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AGING IN PLACE: FOCUS ON THE U.S.MARKET
Prepared by Helene Andre, Market Research Analyst & Luka Grujic, Strategy Manager - HealthcareFor French Tech Hub
March 2016
ACCELERATING GROWTH FOR FRENCH TECH COMPANIES IN THE U.S. 2Copyright © 2015. All Rights Reserved
The aging population is expected to sky rocket in the next decade and the United States has to rethink how it will deliver care for its elderly.
With recent advancements in technology, Aging in Place has emerged as strong solution to address this pressing need.
In this presentation, French Tech Hub explores the dynamics of the U.S. aging population and gives an overview of the solutions that are being developed for Aging in Place.
I. Current challenges with the aging population II. Opportunity for Aging in Place
AGENDA
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The US population age 65+ was 44.7M in 2013 and represented 14.1% of the U.S. population. It is expected to grow to 21.7% of the population by 2040.By 2060, there will be about 98 million elderly.
IN THE COMING YEARS, THE US ELDERLY POPULATION WILL SURPASS THE YOUNG POPULATION IN MAJORITY
2015 2040 2060
Baby Boomers
Baby Boomers Baby Boomers
Source: AARP 2015
ACCELERATING GROWTH FOR FRENCH TECH COMPANIES IN THE U.S. 4Copyright © 2015. All Rights Reserved
1 in 4 elderly Americans live in one of three states: California, Florida, and New York.
Illinois, Michigan, New Jersey, Ohio, Pennsylvania, and Texas —account for another one-quarter of Americans age 65 or older
80+ senior facilities are concentrated in Florida counties.• Marion County, FL, which has 22,000 people age 80
or older, is home to The Villages, an entire city built up around retirees.
• Palm Beach County has 89 home health agencies, 3 senior centers, and many in-home care providers
Louisville, Kentucky is a very big player in long-term care, being one of the "headquarters in nursing home, rehabilitation, assisted living and home health administration”.
.
SOME KEY LOCATIONS IN THE U.S. WHERE THE ELDERLY LIVE
Source: FTH analysis
ACCELERATING GROWTH FOR FRENCH TECH COMPANIES IN THE U.S. 5
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THE CURRENT CARE SYSTEM WILL NOT BE ABLE TO SUSTAIN THIS INCREASE DUE TO 3 KEY PROBLEMS 1) COST 2) ACCESS 3) DISCONNECT
Being old is expensive• For the government through the healthcare programs of Medicare and Medicaid• 94% of people aged 65+ paid for a portion of their health care out of pocket.
The existing settings will not be able to absorb the increasing number of seniors and there will be a lack of care givers available
89% of seniors wish to remain in their homes for as long as possible with the key reason being able to live under one’s own rules.
COST
ACCESS
DISCONNECT
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Baby boomers are reaching closer to retirement and will put a huge burden on the cost of health care. Medicare will drive costs from 2016-2023, with an average annual increase of 7.3 %.
For this reason, the government is pushing for action to :1. Develop in home health products2. Increase patient compliance3. Improve disease prevention measures
THE RETIREMENT OF THE BABY BOOMER GENERATION IS DRIVING COSTS FOR MEDICARE AND MEDICAID TO UNPRECEDENTED LEVELS
COST
Source: PBS 2014
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Americans rely a lot on family caregivers.
In 2015, around 43.5 million families provided care for an older relative, and 14.9 million for a relative with Alzheimer’s or dementia.
Given the future population changes, the caregiver support ratio will decline from its 2010 level of 7 potential caregivers for each person aged 80+ down to a ratio of 4:1 in 2030 and 3:1 in 2050
Caregiver support ratio (CSR) – "the number of potential family caregivers aged 45-64 for each person aged 80+"
WITHIN THE NEXT 15 YEARS, THE US WILL FACE A SIGNIFICANT LACK OF CAREGIVERS FOR ITS ELDERLY POPULATION
ACCESS
Source: AARP, 2013
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THE 5 MAIN CARE SETTINGS FOR THE AGING POPULATION ARE EXPENSIVE AND LIMITED IN CAPACITY
Independent Living Community
Assisted Living Facility
Residential Care Facility
Continuing Care Communities
Nursing Homes
245,000 units
$1500-$3500 /month.
Largest single provider: Holiday Retirement with
40,440 units in 315 retirement communities
Independent living communities are for aging individuals who are active
and want full control over all aspects of life
1,233,690 units in31,100 facilities
$2500-$4000 /month
From 2007 to 2010, supply has increased almost 18 %
Assisted living facilities are for aging individuals who
value independence but may need minimum help for their
daily living
851,400 units in 22,200 facilities
$3,500-$4,500 /month
Proportion of residential care communities with for-profit
ownership: 78.4%
Residential care facilities are for aging individuals that
require assistance with personal care or medical
needs
570,000 units in1,900 communities
Entrance fee $20,000-$1M then $500-$5,000 /month
Continuing care retirement communities are multi tier campus’ that offer all the
services of care under one roof
1.7 Million unitsin 15,700 nursing homes
$4,000-$8,000 /month
Proportion of nursing homes with for-profit ownership:
68.2%
Nursing homes are for aging individuals that require
serious health assistance with personal care or medical
needs
ACCESS
Source: AARP, 2012 ; Center for Disease Control & Prevention, 2012 ; Leading Age 2011; FTH analysis
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I. Current challenges with the aging population II. Opportunity for Aging in Place
AGENDA
ACCELERATING GROWTH FOR FRENCH TECH COMPANIES IN THE U.S. 10Copyright © 2015. All Rights Reserved
Aging in place“The ability to live in one's own home and community safely, independently, and comfortably, regardless of age, income, or ability level.“
Centers for Disease Control and Prevention
Assistive domotics or internet of caring things are home automation technologies that focus on making it possible for older adults and people with disabilities to remain at home, safe, and comfortable. This field uses much of the same technologies as home automation for security, entertainment, and energy conservation.“Assistive technology for aging in place is expected to grow from $2 billion today to more than $20 billion by 2020.”
RECENT ADVANCEMENTS IN TECHNOLOGY ARE MAKING AGING IN PLACE MORE AFFORDABLE & ACCESSIBLE
Source: AARP 2015, Infinaims 2016, Aging In Place Technology Watch 2012
ACCELERATING GROWTH FOR FRENCH TECH COMPANIES IN THE U.S. 11Copyright © 2015. All Rights Reserved
At an individual level, aging in place (even when including remodeling costs) is significantly less expensive than senior care facilities that includes recurring annual fees.
At a federal level, aging in place allows savings for both Medicaid and Medicare enabling savings of $45K annually per participant, or $2-$3 Billion total annually (low estimate).
AGING IN PLACE IS A MORE ECONOMIC SOLUTION AT BOTH THE INDIVIDUAL AND FEDERAL LEVEL
Aging in Place Independent Living Communities
Assisted Living Facility
Residential Care Facility
Continuing Care Communities
Nursing Homes
Individual Cost
$ 70K-100KOne time
$ 180K-420K for 10 years
$ 300K-480K for 10 years
$ 420K-540K for 10 years
$ 480K-960K for 10 years
$ 80K-1.6M for 10 years
Source: U.S. Department of Housing and Urban Development 2013 ; French Tech Hub analysis
ACCELERATING GROWTH FOR FRENCH TECH COMPANIES IN THE U.S. 12Copyright © 2015. All Rights Reserved
AGING IN PLACE BENEFITS FROM THE TECH ADVANCEMENTS IN BOTH SMART HOME AND DIGITAL HEALTH MARKETS/SEGMENTS
Telemedicineto transmit key information to HCP
Communicationsto contact loved ones
SecurityTo detect unusual behaviors
& activities
SafetyTo detect falls & shocks
LightingTo adapt lighting to user’s
path & activities
Communicationsto contact emergency
servicesQuantified selfto keep track of daily
activities
Wearablesto collect data from users
Remote monitoringto check adherence to a medication regimen
AGING IN PLACE
Digital HealthSmart Home
Source: FTH analysis
“Home is the fastest growing setting for healthcare”Rick Valencia, Sr. Vice President Qualcomm & General Manager, Qualcomm Life
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AGING IN PLACE HAS BOTH PRIVATE & PUBLIC AND FOR PROFIT & NON PROFIT STAKEHOLDERS THAT COMPANIES NEED TO BE AWARE OF
Government
SENIOR CITIZENS AND THEIR FAMILIES45M PEOPLE Associations/Non
ProfitSenior Care
Settings
Independent Living Community
Assisted Living Facility
Residential Care Facility
Continuing Care Communities
Nursing Homes Health Care Providers
NursesHospitals
Clinicians
Solution Providers
Source: FTH analysis
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AGING IN PLACE IS COMPRISED OF SEGMENTS THAT ARE SCATTERED WITH BOTH INCUMBENTS AND YOUNG STARTUPS
Smart Home & Home Safety Health Care
ACCELERATING GROWTH FOR FRENCH TECH COMPANIES IN THE U.S. 15Copyright © 2015. All Rights Reserved
THE MOST ACTIVE IOT INVESTORS 2010-2015 by CB Insights
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FUNDING CAN BE FOUND FROM ANGELS, VENTURE CAPITAL, CORPORATE VENTURE, AND CROWDFUNDING
Business Angels & VCs
Shasta Ventures: Nest Cota Capital: Canary, LunaGenerator Ventures is a stage agnostic investment fund focused on aging and long-term careLink-age Ventures: $27M fund dedicated to seniors
Crowdfunding & Others
AARP launched a $40 million fund to develop technology for seniors
CVCs
Samsung Ventures invests in digital health and smart home; 2 dedicated funds: Samsung Catalyst fund ($100M) and Digital Health Challenge ($50M)Intel and General Electric formed a joint venture in 2011 to transform the way that health care is delivered at home
HOW TO CONTACT US
ACCELERATING GROWTH FOR FRENCH TECH COMPANIES IN THE U.S.
Boston50 Milk Street, 16th Floor
Boston, MA 02109San Francisco2415 Third Street, Suite 231San Francisco, CA 94107
Marie Buhot-Launay, Sales and Marketing Director
@frenchtechhub
www.frenchtechhub.com
French Tech Hub supports companies with a solid ability to succeed on the US market. We assess elements such as quality, disruptive character of the innovation, overall market potential, team agility and ambition, and financial capacity.
If you think you are a good fit, tell us about your project:
http://frenchtechhub.com/questionnaire/