Parks associates ics conference presentation


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Parks associates ics conference presentation

  1. 1. Happily Aging: International Opportunities in Independent/Assistive Living Harry Wang, Director of Mobile and Health
  2. 2. Slide Graying is a Global Phenomenon & Challenge <ul><li>U.S.: 65 years and older will d ouble to more than 70 million by 2030
  3. 3. Europe: Senior population will increase 77% and 80+ subgroup will rise 174% by 2050
  4. 4. Japan: 65 years and older will rise to 32% in 2030 and 41% in 2055, up from 20% in 2000
  5. 5. 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 </li></ul>Alarming Numbers Is the World Readily Prepared? <ul><li>U.S.: Shortage of care workers and high cost of institutional care put its long-term care system in crisis
  6. 6. Europe: Government is under the gun to improve long-term care coverage, increase staff, and make the service affordable
  7. 7. Japan: S evere shortage of skilled care workers and threat of pension cut
  8. 8. China: I nsufficient long-term care infrastructure and rapid rising expenditure on senior care services threaten quality and affordability of senior care </li></ul>
  9. 9. Slide Retirement is a Financial Choice <ul><li>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.
  10. 10. 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
  11. 11. 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 </li></ul>
  12. 12. Slide Institutional Long-Term Care is Supplementary in Nature <ul><li>U.S., institutional long-term care facilities accommodate about 2.5 million seniors or 8-9% of the total senior population
  13. 13. 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
  14. 14. China: less than one million seniors are living in a long-term care facility—the majority are living in with their grown-up children
  15. 15. Europe : although there has been quick expansion of private and public funded nursing homes across Europe, total number of residents remain small. </li></ul>
  16. 16. Slide A Home/Community-based Care Model for Seniors
  17. 17. Slide Consumers are Searching for Options
  18. 18. Slide Living in the Home: Needs and Wants Health <ul><li>Control symptoms
  19. 19. Prevent hospitalization
  20. 20. Manage medication
  21. 21. Comfort diagnosis </li></ul>Connection <ul><li>Family members
  22. 22. Circle of friends
  23. 23. Community access
  24. 24. Fun in life </li></ul>Safety <ul><li>Fall detection & prevention
  25. 25. Safe environment
  26. 26. Emergency response </li></ul>Contribution <ul><li>Sense of fulfillment
  27. 27. L egacy left behind
  28. 28. Satisfaction of life </li></ul>Basic Needs Emotional Wants
  29. 29. Slide Miscues by Tech Vendors Selling to the Eldercare Market <ul><li>“ Build it first” mantra: Great engineering does not translate into market success </li></ul><ul><li>Underestimate the intricacies of the healthcare marketplace: E ven in the direct-to-consumer market, rules of engagement are different from the traditional tech market </li></ul><ul><li>“ It helps manage your health condition (save your life)!”: Nothing wrong in the message itself, but completely wrong for marketing’s sake </li></ul><ul><li>Dedicated home gateway : Another box in the home? </li></ul>
  30. 30. Slide Success Factors for Home-based Eldercare Models Recommended Steps Challenges <ul><ul><li>Technology complexity puts off seniors </li></ul></ul><ul><ul><li>Seniors live with limited financial resources </li></ul></ul><ul><ul><li>Compliance rate goes down over time </li></ul></ul><ul><ul><li>Low awareness and trust about solution </li></ul></ul>Opportunities <ul><ul><li>Bring learning fun into user’s experience and add killer apps like connecting to family </li></ul></ul><ul><ul><li>Lower prices to mass market levels </li></ul></ul><ul><ul><li>Auto-configurable, highly interactive, low maintenance, and constant feedback with rewards </li></ul></ul><ul><ul><li>Leverage partners’ influence to gain market advantages </li></ul></ul><ul><ul><li>Make it less about technology specs, but fun and immersive </li></ul></ul><ul><ul><li>Make it affordable or secure private or public reimbursement </li></ul></ul><ul><ul><li>Make it less intrusive or reward continuous use with incentives </li></ul></ul><ul><ul><li>Work with partners and care givers to nurture market </li></ul></ul>
  31. 31. Slide Success Factor: Affordability
  32. 32. Slide Success Factor: Revolutionary Designs Intel Health Guide <ul><li>10.4-inch screen and $500 and up
  33. 33. Features personalized care management, patient reminders, surveys, multimedia educational content, and communications tools
  34. 34. It is medical grade, but who cares in the consumer market? </li></ul>Apple iPad <ul><li>9.7-inch screen and between $499 to $749
  35. 35. Numerous apps will surface to support self-care needs of all kind of people, including seniors
  36. 36. It is not a medical device, but who cares in the consumer market if it offers easy and immersive experience </li></ul>
  37. 37. Slide Success Factor: Partners A Good Partner M ust: <ul><li>Have a long-term vested interest in the eldercare market instead of short-term financial gains </li></ul><ul><li>Have resources to reach out to potential users or payers of eldercare </li></ul><ul><li>Have expertise or a platform to drive down total solution costs </li></ul><ul><li>Have channels to support feasible business models </li></ul><ul><li>Have expertise to guide through regulatory and policy landmines </li></ul>Types of Partners Include: <ul><li>Health plans or employers </li></ul><ul><li>Healthcare provider groups or retail operators </li></ul><ul><li>Existing popular device/service platforms </li></ul><ul><li>Have channels to support feasible business models </li></ul><ul><li>ACOs, retirement communities, medical home centers </li></ul><ul><li>Industry associations and consortia </li></ul>
  38. 38. Slide Example 1: Grandcare Systems
  39. 39. Slide Example 2: Halo Monitoring
  40. 40. Slide Example 3: American Medical Alert Corp. <ul><li>Basic/Mobile PERS: Emergency response made more convenient with built-in mobility
  41. 41. MedSmart : Medication reminder and dispensing system
  42. 42. Health monitoring: Daily health symptom monitoring adds additional value </li></ul>
  43. 43. Slide Market Opportunity: United States Near-Term: <ul><li>PERS Upgrade: slower industry growth encourage PERS providers to diversify revenues </li></ul><ul><li>Telecom and broadband service providers: eager to launch value added services to mitigate revenue loss on fixed line or voice services </li></ul><ul><li>Residential and retirement home builders: independent living is a strong selling point of new breed of retirement homes/communities </li></ul><ul><li>Post-discharge at-home rehabilitation: reduce re-admission by keeping patients in the home </li></ul>Longer-Term <ul><li>Obama health reform provisions reward care coordination through payment model innovations </li></ul><ul><li>Cash benefits for long-term care beneficiaries may spur higher usage of in-home safety and health monitoring for independent living </li></ul><ul><li>Self-insured employers begin to understand caregiving’s impact on employee productivity, thus willing to subsidize independent living solutions </li></ul><ul><li>Expansion of Medicare/Medicaid long-term care benefits to cover independent living solutions </li></ul>
  44. 44. Slide Market Opportunity: Canada Longer-Term <ul><li>Plan to offer integrated care services will increase senior’s appetite for aging-in-place technologies </li></ul><ul><li>Expansion of the Veteran Independence Program (VIP) to seniors </li></ul><ul><li>Expansion of the compassionate care benefit will provide better incentive to caregivers for adopting independent living solutions </li></ul><ul><li>Government’s inability to meet fast growing demand for independent living housing could lead to a private boom of senior retirement housing market </li></ul>Near-Term: <ul><li>PERS Upgrade: slower industry growth encourage PERS providers to diversify revenues </li></ul><ul><li>Telecom and broadband service providers: eager to launch value added services to mitigate revenue loss on fixed line or voice services </li></ul><ul><li>Provincial government ‘s interest in pilot programs that solicit private and public sectors’ collaboration to address seniors’ independent needs </li></ul>
  45. 45. Slide Market Opportunity: Japan, South Korea, China Longer-Term <ul><li>Expansion of coverage of house call program as part of long-term insurance scheme (Japan) </li></ul><ul><li>Reorganization of informal care as reimbursable within the long-term insurance scheme (Japan & Korea) </li></ul><ul><li>Urban housing project and retirement home for seniors (China) </li></ul>Near-Term: <ul><li>Fast growing of private nursing homes for home-alone seniors (Japan) </li></ul><ul><li>Employer market as employment benefits for expatriates who are concerned about elderly parents (Japan & South Korea) </li></ul><ul><li>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) </li></ul>
  46. 46. Slide Market Opportunity: Europe Longer-Term <ul><li>Consumer allocation of “personal budget” to independent living technology acquisition </li></ul><ul><li>Adoption of technology by g overnment-owned or subsidized long-term care facilities </li></ul><ul><li>Expansion of the informal care benefit will provide better incentive to caregivers for adopting independent living solutions </li></ul>Near-Term: <ul><li>EU-sponsored independent living pilots and research programs </li></ul><ul><li>Government sponsored senior housing programs and/or grant programs (e.g. U.K.’s Preventive Technology Grant) </li></ul><ul><li>Private nursing home builders and operators and home care agencies in E urope </li></ul><ul><li>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 </li></ul>
  47. 47. Slide Concluding Thoughts <ul><li>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 </li></ul><ul><li>From Episodic Solutions to Continuum Solutions: from early aging to late aging, consumer needs shift </li></ul><ul><li>Business Models, Business Models: what’s th e right price point for whom? What partners matter most to you? </li></ul><ul><li>Interest Alignment: Who gets the benefits and who gets paid? Will we cross the chasm between private pay and insurer reimbursement? </li></ul>
  48. 48. Slide Thank You Harry Wang Director, Health & Mobile Parks Associates 5310 Harvest Hill Road, Suite 235 Dallas, Texas 75230 Direct: 972-996-0227
  49. 49. 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. About Parks Associates 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 Coverage 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