Emerging Markets for Independent Assisted Living Sector Webcast


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Emerging Markets for Independent Assisted Living Sector Webcast

  1. 1. Emerging Market Opportunities for Small Businesses in Independent/Assisted Living Sector<br />A Webcast Sponsored by the Wellness and Health Innovation Project<br />Presented by<br />
  2. 2. Audio Recording<br />Click here to:View Recording Select one of 2 options to view the webcast in its entirety.<br />Subject: Holiday Shopping ForecastsRecording URL:https://www.livemeeting.com/cc/parksassociates/view Recording ID:     J3BQGRAttendee Key:    8`4z!W2<br />Slide 2<br />
  3. 3. Outline<br />Global Aging-in-Place Technology Trends <br />Issues/problems for Care Providers due to Lack of Support and Funding <br />Technology Funding Models and Partner Opportunities <br />Impact of Reforms on the Long-term Health Insurance Industry <br />Slide 3<br />
  4. 4. Defining Aging-in-Place Technology Market<br />Health<br /><ul><li>Control symptoms
  5. 5. Prevent hospitalization
  6. 6. Manage medication
  7. 7. Comfort diagnosis</li></ul>Connection<br /><ul><li> Family members
  8. 8. Circle of friends
  9. 9. Community access
  10. 10. Fun in life</li></ul>Safety<br /><ul><li>Fall detection & prevention
  11. 11. Safe environment
  12. 12. Emergency response</li></ul>Contribution<br /><ul><li>Sense of fulfillment
  13. 13. Legacy left behind
  14. 14. Satisfaction of life</li></ul>Slide 4<br />
  15. 15. An Example: WellAware Systems<br />www.parksassociates.com<br />Slide 5<br />
  16. 16. Senior Care Market Ripe for New Care Services <br />Trends in the Senior Care Market:<br /><ul><li> 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.
  17. 17. Between 12-18% of U.S. households are currently taking care of fragile or chronically ill seniors
  18. 18. Another 10-12% of households anticipate to take care of their elderly parents or relatives within the next five years
  19. 19. 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
  20. 20. Technology is enabling predictive/preventive senior care solutions instead of reactive and detective services like PERS
  21. 21. 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</li></ul>Slide 6<br />
  22. 22. Current Adoption: Hardware<br />Slide 7<br />
  23. 23. Adoption of Senior Care Technology by Family Caregivers<br />cc<br />Source: Personal Health Tools and Applications<br />© 2010 Parks Associates<br />Slide 8<br />
  24. 24. Are Consumers Interested in Senior Care Technology?<br />Source: Personal Health Tools and Applications<br />© 2010 Parks Associates<br />Slide 9<br />
  25. 25. The Vendor Market is Dominated by Start-Ups<br />Equipment Vendors/Distributors:<br />Manufacture and distribute health and senior aging-in-place products like sensors, medication reminders, and home health monitoring platforms.<br />Safety Service Providers:<br />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.<br />Safety and Health Service Providers:<br />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.<br />Software and Applications Developers:<br />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.<br />Slide 10<br />
  26. 26. Technology Challenges and Opportunities<br />Challenges<br />Recommended Steps<br />Opportunities<br /><ul><li>Technology complexity puts off consumers
  27. 27. Cost of services and devices exceed consumer expectation and budget
  28. 28. Compliance rate goes down over time
  29. 29. Low awareness and trust about solution
  30. 30. Bring learning fun into user’s experience and add killer apps to increase interaction
  31. 31. Lower prices to mass market levels
  32. 32. Auto-configurable, highly interactive, low maintenance, and constant feedback with rewards
  33. 33. Leverage partners’ influence to gain market advantages
  34. 34. Make it less about technology specs, but fun and immersive
  35. 35. Make it affordable or secure private or public reimbursement
  36. 36. Make it less intrusive or reward continuous use with incentives
  37. 37. Work with partners and care givers to nurture market</li></ul>Slide 11<br />
  38. 38. Four Funding Models for Aging-in-Place Technologies <br /><ul><li>Conventional Device Sales/Rental
  39. 39. Pros: Simple and direct without the risk of running a service company
  40. 40. Cons: Limited by the scale of customers
  41. 41. Care Management Service Reimbursement
  42. 42. Pros: Insurer’s comfort level is high; care management service utilization is high
  43. 43. Cons: Must prove cost effectiveness; building service capability takes long time</li></ul>.<br /><ul><li>Take the Service to Consumers Directly
  44. 44. Pros: Multiple means to market to consumers; directly ties to consumers’ discretionary spending
  45. 45. Cons: Consumer price sensitive; regulatory landmines; market competition
  46. 46. Care Providers Pick up the Tab (resell through care providers)
  47. 47. Pros: Easier sales if benefits are real to providers
  48. 48. Cons: Have to meet providers’ criteria that might conflict with end users; channel entry cost is high
  49. 49. New Models: Software as a Service/Platform Enabler?</li></ul>Slide 12<br />
  50. 50. Other Funding Sources and References<br />Center for Technology and Aging: Grants for aging technology research and business models<br />U.S. government branches: Department of Veteran Affairs/Department of Defense<br />Private Charities<br />Slide 13<br />
  51. 51. U.S. Aging-in-Place Technology Market Size (Not Counting Health Monitoring)<br />Source: Parks Associates Digital Health Research<br />© 2010 Parks Associates<br />Slide 14<br />
  52. 52. Funding Challenges and Opportunities<br />Challenges<br />Recommended Steps<br />Opportunities<br /><ul><li>No Precedence/ Payers’ Lack of Trust
  53. 53. Payers are also constrained by financial resources, such as U.S. Medicare
  54. 54. Care providers are concerned about upfront costs and medical liability
  55. 55. Venture Capital is unfamiliar with the revenue models and concerned about lack of reimbursement
  56. 56. Seek funding through alternative routes like the Medicaid Waiver Program or senior home care service providers
  57. 57. Collaborate with a care management provider to offer comprehensive home care services for both health and safety management
  58. 58. Works with care providers, hardware platform providers and service enablers to lower the cost of deployment
  59. 59. Run trials to win over non-believers
  60. 60. Make aging-in-place solutions part of a care management program or offer pay-for-performance guarantee to get trial opportunities
  61. 61. Partner with other players to share the costs of deployment
  62. 62. Develop innovative business models to convince VCs</li></ul>Slide 15<br />
  63. 63. Examples: Seeking Funding from Alternative Sources<br /><ul><li>Building a comprehensive care solution consisting of mobile PERS, medication dispensing and monitoring, as well as health monitoring.
  64. 64. Seeking Medicaid reimbursement for mobile PERS and medication management through the Pennsylvania Medicaid Waiver Program and similar waiver programs from other states.
  65. 65. Partnering with MedApps to offer the latter’s mobile health monitoring solution in addition to its senior safety monitoring service.
  66. 66. 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.
  67. 67. 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. </li></ul>Slide 16<br />
  68. 68. Examples: Working with Partners to Open New Market Opportunities<br /><ul><li> 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.
  69. 69. With the new joint venture, the new entity is expected to market the QuietCare product line in the same fashion
  70. 70. 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
  71. 71. Taking the same approach as BL Healthcare and working with partners like Microsoft, AT&T, and American Heart Association.</li></ul>Slide 17<br />
  72. 72. Reforms in the Long-term Health Insurance Market<br /><ul><li> In the U.S., the healthcare overhaul efforts led to new legislation on the long-term care market.
  73. 73. 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.
  74. 74. The premium incurred for this voluntary long-term health insurance will be around $120 per month, based on a CBO estimate.
  75. 75. It also encourages state Medicaid to offer home or community-based services and increases federal matching payments.
  76. 76. The program will take effect on January 1, 2011, and CBO estimates that up to 3.5% of adult population will enroll by 2019.
  77. 77. In our analysis, this cash benefit, together with federal matching payments, may spur high usage of in-home activity monitoring to foster independent living.</li></ul>Slide 18<br />
  78. 78. Market to Grow Rapidly<br />Slide 19<br />
  79. 79. Thank You<br />Harry Wang<br />Director, Health Research<br />Parks Associates<br />5310 Harvest Hill Road, Suite 235<br />Dallas, Texas 75230<br />Direct: 972-996-0227<br />harry@parksassociates.com<br />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.<br />www.wellnesshealthinnovation.org<br />Slide 20<br />