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  • 1. Happily Aging: International Opportunities in Independent/Assistive Living Harry Wang, Director of Mobile and Health
  • 2. Slide Graying is a Global Phenomenon & Challenge
    • U.S.: 65 years and older will d ouble to more than 70 million by 2030
    • 3. Europe: Senior population will increase 77% and 80+ subgroup will rise 174% by 2050
    • 4. Japan: 65 years and older will rise to 32% in 2030 and 41% in 2055, up from 20% in 2000
    • 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
    Alarming Numbers Is the World Readily Prepared?
    • U.S.: Shortage of care workers and high cost of institutional care put its long-term care system in crisis
    • 6. Europe: Government is under the gun to improve long-term care coverage, increase staff, and make the service affordable
    • 7. Japan: S evere shortage of skilled care workers and threat of pension cut
    • 8. China: I nsufficient long-term care infrastructure and rapid rising expenditure on senior care services threaten quality and affordability of senior care
  • 9. Slide 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.
    • 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. 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
  • 12. Slide 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
    • 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. 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. Europe : although there has been quick expansion of private and public funded nursing homes across Europe, total number of residents remain small.
  • 16. Slide A Home/Community-based Care Model for Seniors
  • 17. Slide Consumers are Searching for Options
  • 18. Slide Living in the Home: Needs and Wants Health
    • Control symptoms
    • 19. Prevent hospitalization
    • 20. Manage medication
    • 21. Comfort diagnosis
    Connection Safety
    • Fall detection & prevention
    • 25. Safe environment
    • 26. Emergency response
    Contribution
    • Sense of fulfillment
    • 27. L egacy left behind
    • 28. Satisfaction of life
    Basic Needs Emotional Wants
  • 29. Slide 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: E ven 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?
  • 30. Slide Success Factors for Home-based Eldercare Models Recommended Steps Challenges
      • Technology complexity puts off seniors
      • Seniors live with limited financial resources
      • Compliance rate goes down over time
      • Low awareness and trust about solution
    Opportunities
      • 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
  • 31. Slide Success Factor: Affordability
  • 32. Slide Success Factor: Revolutionary Designs Intel Health Guide
    • 10.4-inch screen and $500 and up
    • 33. Features personalized care management, patient reminders, surveys, multimedia educational content, and communications tools
    • 34. It is medical grade, but who cares in the consumer market?
    Apple iPad
    • 9.7-inch screen and between $499 to $749
    • 35. Numerous apps will surface to support self-care needs of all kind of people, including seniors
    • 36. It is not a medical device, but who cares in the consumer market if it offers easy and immersive experience
  • 37. Slide Success Factor: Partners A Good Partner M ust:
    • 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
  • 38. Slide Example 1: Grandcare Systems
  • 39. Slide Example 2: Halo Monitoring
  • 40. Slide Example 3: American Medical Alert Corp.
    • Basic/Mobile PERS: Emergency response made more convenient with built-in mobility
    • 41. MedSmart : Medication reminder and dispensing system
    • 42. Health monitoring: Daily health symptom monitoring adds additional value
  • 43. Slide 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
  • 44. Slide Market Opportunity: Canada 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
    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
  • 45. Slide Market Opportunity: Japan, South Korea, China 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)
    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)
  • 46. Slide Market Opportunity: Europe Longer-Term
    • Consumer allocation of “personal budget” to independent living technology acquisition
    • Adoption of technology by g overnment-owned or subsidized long-term care facilities
    • Expansion of the informal care benefit will provide better incentive to caregivers for adopting independent living solutions
    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 E urope
    • 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
  • 47. Slide 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 th e 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?
  • 48. Slide 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
  • 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 www.parksassociates.com