Slide 1Source: U.S. Consumer Attitudes on In-Home Mobile Services and Femtocells
Sample base: 1,100, ±2.95%© Parks Associates 2010
Emerging Market Opportunities for Small Businesses in Independent/Assisted Living Sector
A Webcast Sponsored by the Wellness and Health Innovation Project
Presented by
Audio Recording
• Click here to: View Recording
Select one of 2 options to view the webcast in its entirety.
• Subject: Holiday Shopping ForecastsRecording URL: https://www.livemeeting.com/cc/parksassociates/view Recording ID: J3BQGR Attendee Key: 8`4z!W2
Slide 2
Outline
• Global Aging-in-Place Technology Trends
• Issues/problems for Care Providers due to Lack of Support and Funding
• Technology Funding Models and Partner Opportunities
• Impact of Reforms on the Long-term Health Insurance Industry
Slide 3
Slide 4
Defining Aging-in-Place Technology Market
Health
• Control symptoms• Prevent hospitalization• Manage medication• Comfort diagnosis
Connection
• Family members• Circle of friends• Community access• Fun in life
Safety • Fall detection &
prevention• Safe environment• Emergency response
Contribution
• Sense of fulfillment• Legacy left behind• Satisfaction of life
An Example: WellAware Systems
www.parksassociates.com Slide 5
Slide 6
Senior Care Market Ripe for New Care Services
Trends in the Senior Care Market:
Seniors have adequate home technology infrastructure to support new breed of care services: more than 75% have a broadband Internet connection, 73% use a pay-TV service, more than 80% own a mobile phone, although only 6% use a smartphone.
Between 12-18% of U.S. households are currently taking care of fragile or chronically ill seniors
Another 10-12% of households anticipate to take care of their elderly parents or relatives within the next five years
People are willing to invest in senior care technology-enabled services if such services are priced in reasonable range, endorsed by care providers, and easy to install and use
Technology is enabling predictive/preventive senior care solutions instead of reactive and detective services like PERS
Vendors realize that a good senior care solution must consider an elderly’s overall needs: from managing daily living, to disease conditions, to medication compliance
Slide 7
Current Adoption: Hardware
<1%
1%
3%
4%
23%
49%
0% 20% 40% 60%
Location tracker
Home presence sensor
Drug dispenser with electronic reminder
Emergency response button or pendant
Glucose/Blood sugar meter
Blood pressure meter
Ownership of Health or Safety Monitoring Devices(Q3/10)(Among 644 seniors 65 years and older, +/-3.86%)
Source: Personal Health Tools and Solutions©2010 Parks Associates
17 million
1.4 million
1 million
210K
100K
8 million
Adoption of Senior Care Technology by Family Caregivers
None of the Above
A telehealth service
A location tracking service
A medication reminder service
A personal emergency response system (PERS)
A home activity monitoring/fall detection service
0% 10% 20% 30% 40% 50% 60%
57%
8%
12%
16%
19%
24%
Service Paid for Fragile Senior (Q2/10)"Q6025. Do you currently pay for any services listed below for this person?"
(Among Respondents Taking Care of An Elderly, n=148, ±8.06%)
% indicating usage
Slide 8
Source: Personal Health Tools and Applications© 2010 Parks Associates
Are Consumers Interested in Senior Care Technology?
A location tracking service
A medication management reminder service
A vital sign monitoring service
An in-home activity monitoring service
A video conferencing service
A fall detection service
An emergency response service
37%
37%
39%
40%
46%
55%
72%
Interest Level for Purchasing Senior Care Service (Q2/10)(Among Respondents Taking Care of or Anticipating to Look After Loved Ones, % rating 6-7)
Slide 9
Source: Personal Health Tools and Applications© 2010 Parks Associates
Software and Applications Developers:
Develop software or service platforms and do not own hardware or run service themselves. Their goal is to enable health and aging-in-place services by working with partners and license the platform to service providers.
Safety Service Providers:
Offer home emergency response, fall detection, and wander-off prevention services. Most also use a home-grown solution that may or may not work with third-party hardware.
Equipment Vendors/Distributors:
Manufacture and distribute health and senior aging-in-place products like sensors, medication reminders, and home health monitoring platforms.
Slide 10
The Vendor Market is Dominated by Start-Ups
Safety and Health Service Providers:
Offer not only home safety monitoring solutions, but also blend it with health vital sign collection, personal health education, communications with care providers & family members, etc.
Recommended Steps
Technology Challenges and Opportunities
Challenges
• Technology complexity puts off consumers
• Cost of services and devices exceed consumer expectation and budget
• Compliance rate goes down over time
• Low awareness and trust about solution
Opportunities
• Bring learning fun into user’s experience and add killer apps to increase interaction
• Lower prices to mass market levels
• Auto-configurable, highly interactive, low maintenance, and constant feedback with rewards
• Leverage partners’ influence to gain market advantages
• Make it less about technology specs, but fun and immersive
• Make it affordable or secure private or public reimbursement
• Make it less intrusive or reward continuous use with incentives
• Work with partners and care givers to nurture market
Slide 11
Four Funding Models for Aging-in-Place Technologies
• Conventional Device Sales/Rental Pros: Simple and direct without the risk of running a service company Cons: Limited by the scale of customers
• Care Management Service Reimbursement Pros: Insurer’s comfort level is high; care management service utilization is high Cons: Must prove cost effectiveness; building service capability takes long time.• Take the Service to Consumers Directly Pros: Multiple means to market to consumers; directly ties to consumers’ discretionary
spending Cons: Consumer price sensitive; regulatory landmines; market competition
• Care Providers Pick up the Tab (resell through care providers) Pros: Easier sales if benefits are real to providers Cons: Have to meet providers’ criteria that might conflict with end users; channel entry cost
is high
• New Models: Software as a Service/Platform Enabler?
Slide 12
Other Funding Sources and References
• Center for Technology and Aging: Grants for aging technology research and business models
• U.S. government branches: Department of Veteran Affairs/Department of Defense
• Private Charities
Slide 13
Slide 14
U.S. Aging-in-Place Technology Market Size (Not Counting Health Monitoring)
70%
30%
U.S. Aging-in-Place Revenues By Technologies (2009)
Traditional PERS Services
Other Aging-in-place Technologies-based Telecare Services, such as mobile PERS, home activity monitoring/fall detection, wander-off prevention, etc.
76%
9%
15%
U.S. Aging-in-Place Revenues By Funding Sources (2009)
Direct Service to Consumers
Through Reim-bursement of a Care Program
Through Care Provider Re-sale (Including Trials)
Source: Parks Associates Digital Health Research© 2010 Parks Associates
Recommended Steps
Funding Challenges and Opportunities
Challenges
• No Precedence/ Payers’ Lack of Trust
• Payers are also constrained by financial resources, such as U.S. Medicare
• Care providers are concerned about upfront costs and medical liability
• Venture Capital is unfamiliar with the revenue models and concerned about lack of reimbursement
Opportunities
• Seek funding through alternative routes like the Medicaid Waiver Program or senior home care service providers
• Collaborate with a care management provider to offer comprehensive home care services for both health and safety management
• Works with care providers, hardware platform providers and service enablers to lower the cost of deployment
• Run trials to win over non-believers
• Make aging-in-place solutions part of a care management program or offer pay-for-performance guarantee to get trial opportunities
• Partner with other players to share the costs of deployment
• Develop innovative business models to convince VCs
Slide 15
Slide 16
Examples: Seeking Funding from Alternative Sources
• Building a comprehensive care solution consisting of mobile PERS, medication dispensing and monitoring, as well as health monitoring.
• Seeking Medicaid reimbursement for mobile PERS and medication management through the Pennsylvania Medicaid Waiver Program and similar waiver programs from other states.
• Partnering with MedApps to offer the latter’s mobile health monitoring solution in addition to its senior safety monitoring service.
• Using its certification with professional organizations like the Alzheimer’s Association, Country Villa Health Services, and Care New England Health System to expand its influence and persuade consumers and care providers alike.
• Successfully convinced the Evangelical Lutheran Good Samaritan Society, a large home care service provider, to run a five-states, 3-year trial using $8.1 million funding from The Leona M. and Harry B. Helmsley Charitable Trust.
Slide 17
Examples: Working with Partners to Open New Market Opportunities
• Intel is expanding the distribution of its HealthGuide through partners like Fujitsu in Netherlands, Orange in France, Telefonica in Spain and Asklepios Hospital Group in Germany.
• With the new joint venture, the new entity is expected to market the QuietCare product line in the same fashion
• Adopting a platform strategy to work with various third-party vendors with innovative health and aging-in-place applications and partner with Verizon Wireless and Sprint on service enablement, with the goal to deliver a turnkey solution to healthcare providers
• Taking the same approach as BL Healthcare and working with partners like Microsoft, AT&T, and American Heart Association.
Slide 18
Reforms in the Long-term Health Insurance Market In the U.S., the healthcare overhaul efforts led to new legislation on the long-term care market.
The ACT establishes a national voluntary insurance program for community living assistance services and supports using a cash benefit of no less than $50 per day on average, with no lifetime limit. Such cash benefits will encourage seniors to stay at home or use community-based services instead of receiving institutional long-term care.
The premium incurred for this voluntary long-term health insurance will be around $120 per month, based on a CBO estimate.
It also encourages state Medicaid to offer home or community-based services and increases federal matching payments.
The program will take effect on January 1, 2011, and CBO estimates that up to 3.5% of adult population will enroll by 2019.
In our analysis, this cash benefit, together with federal matching payments, may spur high usage of in-home activity monitoring to foster independent living.
Slide 19
Market to Grow Rapidly
20092010
20112012
20132014
$0
$3,000
$6,000
U.S. Connected Care Market Revenue Forecast(2009-2014)
U.S
. Do
llar
(Mill
ion
s)
Source: Parks Associates Digital Health Research© 2010 Parks Associates
Thank You
Harry WangDirector, Health Research
Parks Associates5310 Harvest Hill Road, Suite 235
Dallas, Texas 75230
Direct: [email protected]
Slide 20
Commissioned by Wellness and Health Innovation, Scotland’s national initiative designed to support Scottish companies developing innovative products or services for the wellness and health sector.
www.wellnesshealthinnovation.org
