Parks Associates Research - Keynote Speaker Harry Wang

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Parks Associates Research - Keynote Speaker Harry Wang

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

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