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Parks Associates Research - Keynote Speaker Harry Wang
 

Parks Associates Research - Keynote Speaker Harry Wang

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Parks Associates Research - Keynote Speaker Harry Wang

Parks Associates Research - Keynote Speaker Harry Wang

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    Parks Associates Research - Keynote Speaker Harry Wang Parks Associates Research - Keynote Speaker Harry Wang Presentation Transcript

    • Happily Aging: International Opportunities in Independent/Assistive Living
      Harry Wang,Director of Mobile and Health
    • Graying is a Global Phenomenon & Challenge
      Is the World Readily Prepared?
      Alarming Numbers
      • U.S.: Shortage of care workers and high cost of institutional care put its long-term care system in crisis
      • Europe: Government is under the gun to improve long-term care coverage, increase staff, and make the service affordable
      • Japan: Severe shortage of skilled care workers and threat of pension cut
      • China: Insufficient long-term care infrastructure and rapid rising expenditure on senior care services threaten quality and affordability of senior care
      • U.S.: 65 years and older will double to more than 70 million by 2030
      • Europe: Senior population will increase 77% and 80+ subgroup will rise 174% by 2050
      • Japan: 65 years and older will rise to 32% in 2030 and 41% in 2055, up from 20% in 2000
      • China: 60 years and older will rise from 10% in 2000 to 16.6% in 2020 and 28.8% in 2050 and 100 million will be 85 years and older by 2050
      Slide 2
    • Retirement is a Financial Choice
      • In the U.S., the average cost of an assisted living home is about $3,000 per month while the average amount of social security check is around $1,200 per month.
      • The continuing-care retirement community (CCRC) in the U.S. usually asks for an entry fee averaging $250,000, plus a monthly expense of $2,500 to $5,400
      • In Japan, a one-month stay in a municipally operated nursing home costs close to 366,000 yen (3,000 dollars); a private nursing home room cost a move-in fee of $3,500, plus $1,200 to $1,650 per month to cover rent, utilities, and food
      Slide 3
    • Institutional Long-Term Care is Supplementary in Nature
      • U.S., institutional long-term care facilities accommodate about 2.5 million seniors or 8-9% of the total senior population
      • Canada: about 200,000 live in government provided or private long-term care facilities, and shortage of nursing home beds leads to long waiting time for prospective residents
      • China: less than one million seniors are living in a long-term care facility—the majority are living in with their grown-up children
      • Europe: although there has been quick expansion of private and public funded nursing homes across Europe, total number of residents remain small.
      Slide 4
    • A Home/Community-based Care Model for Seniors
      Slide 5
    • Consumers are Searching for Options
      Slide 6
    • Living in the Home: Needs and Wants
      Health
      • Control symptoms
      • Prevent hospitalization
      • Manage medication
      • Comfort diagnosis
      Connection
      • Family members
      • Circle of friends
      • Community access
      • Fun in life
      Emotional Wants
      Basic Needs
      Safety
      • Fall detection & prevention
      • Safe environment
      • Emergency response
      Contribution
      • Sense of fulfillment
      • Legacy left behind
      • Satisfaction of life
      Slide 7
    • Miscues by Tech Vendors Selling to the Eldercare Market
      • “Build it first” mantra: Great engineering does not translate into market success
      • Underestimate the intricacies of the healthcare marketplace: Even in the direct-to-consumer market, rules of engagement are different from the traditional tech market
      • “It helps manage your health condition (save your life)!”: Nothing wrong in the message itself, but completely wrong for marketing’s sake
      • Dedicated home gateway: Another box in the home?
      Slide 8
    • Challenges
      Recommended Steps
      Opportunities
      Success Factors for Home-based Eldercare Models
      • Technology complexity puts off seniors
      • Seniors live with limited financial resources
      • Compliance rate goes down over time
      • Low awareness and trust about solution
      • Bring learning fun into user’s experience and add killer apps like connecting to family
      • 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 9
    • Success Factor: Affordability
      Slide 10
    • Success Factor: Revolutionary Designs
      Intel Health Guide
      • 10.4-inch screen and $500 and up
      • Features personalized care management, patient reminders, surveys, multimedia educational content, and communications tools
      • It is medical grade, but who cares in the consumer market?
      Apple iPad
      • 9.7-inch screen and between $499 to $749
      • Numerous apps will surface to support self-care needs of all kind of people, including seniors
      • It is not a medical device, but who cares in the consumer market if it offers easy and immersive experience
      Slide 11
    • Success Factor: Partners
      A Good Partner Must:
      • Have a long-term vested interest in the eldercare market instead of short-term financial gains
      • Have resources to reach out to potential users or payers of eldercare
      • Have expertise or a platform to drive down total solution costs
      • Have channels to support feasible business models
      • Have expertise to guide through regulatory and policy landmines
      Types of Partners Include:
      • Health plans or employers
      • Healthcare provider groups or retail operators
      • Existing popular device/service platforms
      • Have channels to support feasible business models
      • ACOs, retirement communities, medical home centers
      • Industry associations and consortia
      Slide 12
    • Example 1: Grandcare Systems
      Slide 13
    • Example 2: Halo Monitoring
      Slide 14
    • Example 3: American Medical Alert Corp.
      • Basic/Mobile PERS: Emergency response made more convenient with built-in mobility
      • MedSmart: Medication reminder and dispensing system
      • Health monitoring: Daily health symptom monitoring adds additional value
      Slide 15
    • Market Opportunity: United States
      Near-Term:
      • PERS Upgrade: slower industry growth encourage PERS providers to diversify revenues
      • Telecom and broadband service providers: eager to launch value added services to mitigate revenue loss on fixed line or voice services
      • Residential and retirement home builders: independent living is a strong selling point of new breed of retirement homes/communities
      • Post-discharge at-home rehabilitation: reduce re-admission by keeping patients in the home
      Longer-Term
      • Obama health reform provisions reward care coordination through payment model innovations
      • Cash benefits for long-term care beneficiaries may spur higher usage of in-home safety and health monitoring for independent living
      • Self-insured employers begin to understand caregiving’s impact on employee productivity, thus willing to subsidize independent living solutions
      • Expansion of Medicare/Medicaid long-term care benefits to cover independent living solutions
      Slide 16
    • Market Opportunity: Canada
      Near-Term:
      • PERS Upgrade: slower industry growth encourage PERS providers to diversify revenues
      • Telecom and broadband service providers: eager to launch value added services to mitigate revenue loss on fixed line or voice services
      • Provincial government ‘s interest in pilot programs that solicit private and public sectors’ collaboration to address seniors’ independent needs
      Longer-Term
      • Plan to offer integrated care services will increase senior’s appetite for aging-in-place technologies
      • Expansion of the Veteran Independence Program (VIP) to seniors
      • Expansion of the compassionate care benefit will provide better incentive to caregivers for adopting independent living solutions
      • Government’s inability to meet fast growing demand for independent living housing could lead to a private boom of senior retirement housing market
      Slide 17
    • Market Opportunity: Japan, South Korea, China
      Near-Term:
      • Fast growing of private nursing homes for home-alone seniors (Japan)
      • Employer market as employment benefits for expatriates who are concerned about elderly parents (Japan & South Korea)
      • Telecom and broadband service providers: eager to launch value added services leveraging their existing infrastructure and client devices as part of their smart home initiative (Japan & South Korea)
      Longer-Term
      • Expansion of coverage of house call program as part of long-term insurance scheme (Japan)
      • Reorganization of informal care as reimbursable within the long-term insurance scheme (Japan & Korea)
      • Urban housing project and retirement home for seniors (China)
      Slide 18
    • Market Opportunity: Europe
      Near-Term:
      • EU-sponsored independent living pilots and research programs
      • Government sponsored senior housing programs and/or grant programs (e.g. U.K.’s Preventive Technology Grant)
      • Private nursing home builders and operators and home care agencies in Europe
      • Telecom and broadband service providers: eager to launch value added services leveraging their existing infrastructure and client devices as part of their smart home initiative
      Longer-Term
      • Consumer allocation of “personal budget” to independent living technology acquisition
      • Adoption of technology by government-owned or subsidized long-term care facilities
      • Expansion of the informal care benefit will provide better incentive to caregivers for adopting independent living solutions
      Slide 19
    • Concluding Thoughts
      • From Passive Aging to Active Aging: New wave of retirees are much more well-versed with technology and have a different perspective on aging than the previous generation
      • From Episodic Solutions to Continuum Solutions: from early aging to late aging, consumer needs shift
      • Business Models, Business Models: what’s the right price point for whom? What partners matter most to you?
      • Interest Alignment: Who gets the benefits and who gets paid? Will we cross the chasm between private pay and insurer reimbursement?
      Slide 20
    • Thank You
      Harry Wang
      Director, Health & Mobile
      Parks Associates
      5310 Harvest Hill Road, Suite 235
      Dallas, Texas 75230
      Direct: 972-996-0227
      Harry@parksassociates.com
      Slide 21
    • About Parks Associates
      Parks Associates’ expertise is derived from a combination of primary research and industry analysis. Each year, Parks conducts a number of primary research surveys to understand the connected home and consumer digital lifestyles.
      Coverage
      TVs / Video
      Audio / Music
      Internet / Broadband
      Gaming
      Mobile / Smartphones
      Mobile services
      Mobile / Portable devices
      Consumer electronics
      Home automation / controls
      Set-top Boxes
      Digital cameras / imaging
      Peripherals
      Digital Health
      GPS
      Home networking
      Residential Gateways
      Home security
      Digital media / rights
      Advertising
      Energy management
      Support / installation
      Scope of Research
      Global markets
      Features & differentiation
      Innovative / disruptive technologies
      Market participants / profiles
      SWOT analysis
      Customer preferences / intent
      Consumer behavior / habits
      Adoption / pricing
      Segmentation
      Optimal bundles / features
      Channel dynamics
      Market trends / dynamics
      Market sizing & forecasts
      Value chain analysis
      Branding
      Consumer decisions & purchasing
      www.parksassociates.com
      22