Emerging Markets for Independent Assisted Living Sector Webcast
 

Emerging Markets for Independent Assisted Living Sector Webcast

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Emerging Markets for Independent Assisted Living Sector Webcast Emerging Markets for Independent Assisted Living Sector Webcast Presentation Transcript

  • 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:     J3BQGRAttendee 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
    View slide
  • Defining Aging-in-Place Technology Market
    Health
    • Control symptoms View slide
    • 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
    Slide 4
  • An Example: WellAware Systems
    www.parksassociates.com
    Slide 5
  • 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 6
  • Current Adoption: Hardware
    Slide 7
  • Adoption of Senior Care Technology by Family Caregivers
    cc
    Source: Personal Health Tools and Applications
    © 2010 Parks Associates
    Slide 8
  • Are Consumers Interested in Senior Care Technology?
    Source: Personal Health Tools and Applications
    © 2010 Parks Associates
    Slide 9
  • The Vendor Market is Dominated by Start-Ups
    Equipment Vendors/Distributors:
    Manufacture and distribute health and senior aging-in-place products like sensors, medication reminders, and home health monitoring platforms.
    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.
    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.
    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.
    Slide 10
  • Technology Challenges and Opportunities
    Challenges
    Recommended Steps
    Opportunities
    • 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
    • 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
  • U.S. Aging-in-Place Technology Market Size (Not Counting Health Monitoring)
    Source: Parks Associates Digital Health Research
    © 2010 Parks Associates
    Slide 14
  • Funding Challenges and Opportunities
    Challenges
    Recommended Steps
    Opportunities
    • 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
    • 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
  • 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 16
  • 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 17
  • 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 18
  • Market to Grow Rapidly
    Slide 19
  • Thank You
    Harry Wang
    Director, Health Research
    Parks Associates
    5310 Harvest Hill Road, Suite 235
    Dallas, Texas 75230
    Direct: 972-996-0227
    harry@parksassociates.com
    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
    Slide 20