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Assisted Living

Drivers, challenges and models for the assistive living solutions market
Anoop Singh, HoIP CIC Thursday 26th November 2009 National Space Centre, Leicester

What are the main drivers?


We have to introduce remote care systems over the next five years if we are not to see the NHS go over the falls the equivalent of Niagara Falls with or without a barrel
(Mike Bainbridge, NHS CfH 23/6/08 eHealth Insider)

Well understood demographic drivers Urgent economic and cost drivers Urgent health and quality drivers User needs and expectations Strong policy drivers, particularly in UK

Changing demographic

Population Drivers
By 2026 there will be 1.7 million more adults who need care and support (9.3m to 16.8m over 65s in next 50 years) Widespread problem of high care needs in retirement (over 15m with LTCs now!)
o Two in three women o One in two men

Rising expectations will result in demand for more choice and control over services

Policy Focus: Personal Care at Home


My Government will introduce a Bill to enable the wider provision of free personal care to those in highest care need. Queens speech, November 18th 2009
The purpose of the Bill is to: Help around 400,000 people with care needs. Offer free personal care at home First step towards setting up a new National Care Service
Self Pay RULED OUT Unfair to many Partnership Shares costs between the individual and the state Insurance Enable people to chose to take out protection against the risk of having high care and support costs Comprehensive Everyone who could afford to would be required to pay in and would get free care and support in return. Tax Funded RULED OUT Economically unviable

Market Drivers & Restraints


Increasing demand for personalised care Increase in chronic illness Standardisation of eHealth systems Care service industry consolidation Elderly population explosion Rising expectations of managed care Privatisation of care

Fragmented market and increasing price competition Low profit margins of care homes Needs and means assessment Lack of awareness Reimbursement models

Economic Drivers
Assisted living services need to be industrialised, scale and be affordable Significant role for state funding but also for individuals and families Huge growth expected in UK and Europe (CAGR ~19-21% 2008-2015) UK set for highest growth Relatively low penetration across Europe

Whats needed to stimulate the market?

Business Models for Assisted Living


Require innovative business models Understand customers needs (who are the customers?) Develop an ecosystem for assisted living products and services Every company must find its role in the value chain Reduce complexity for the customer

Collaboration and complexity


Developing assisted living products and services is a complex socio-technical undertaking Integration of service provision between health, social care and housing services Networked development the right multidisciplinary groups All stakeholders are users

Market characteristics
Strengths Advancing Technology Increased public awareness regarding remote monitoring Cost efficient Weaknesses Expensive technology Lack of reimbursement Reluctance of ageing population to embrace new technology

Opportunities Ageing population Rapid growth in LTCs Increasing healthcare costs Shortage of specialists

Threats Privacy and confidentiality Growing competition with the industry Fragmentation and the effect on end-users

Industry Challenges
Impact of the economic recession and resultant budget squeeze (short term) Changing regulatory influences High initial set-up costs challenge the market Big players are entering the independent living market, and they are consolidating Privacy and confidentiality issues continue to constrain the market

Market Segmentation: Wireless Patient Monitoring Devices


Wireless Assisted Living Devices Market Wireless Patient monitoring Devices market Wireless vital signs Measurement devices market Epilepsy sensors Fall detectors Movement detectors Pill dispensers etc..

Wireless blood pressure monitors Wireless heart rate monitors Wireless glucose monitors Wireless pulse oximeters

Portable Personal Health (Wellness) Devices Market

Total Portable Personal Health Devices Market

Patient monitoring market: Future outlook 2008-2012

2012

Consumers will make better lifestyle choices and become astute purchasers of healthcare services Consumers expected to demand new delivery models and coordination of care Alignment of reimbursement and incentives with preventative and proactive chronic care and with innovative, cost-effective approaches to health and healthcare Lower unit price as the technology evolves Increased interoperability, common IT platforms, high unit volumes Consumers, payers and providers will seek out more convenient and efficient means of health monitoring and management Multiple dimensions to integration (interoperability and device convergence) Huge difference in current industry revenue and available market Expected improvements in IT functionality Shift to increased multi-parameter devices Healthcare providers expand their focus on acute care to encompass the enhanced management of chronic diseases and the life-long prediction and prevention of illness High unit prices, low volumes and moderate margins per unit

Chronic Illness

2011

Fitness Fanatics

2010

Worried Well

2009

Home Health

So what next?
Assisted living solutions have great potential in managing LTCs and coping with an ageing population At the individual level they can work well but the problems are at a system wide level Evidence for costs / benefits is needed to move pilots to mainstream and attract large scale commercial investment

Make it easy for the Consumer

Enable an Ecosystem
Technically and in commercial terms only an integrated ecosystem will be able to provide sustainable mass market assisted living solutions Enable a mass market Industrialise the services and scale Open ecosystem (incl. integration & interoperability) Every company must find its role in the value chain Innovation (technical, service and business models)

Questions?

Anoop Singh anoop.singh@hoip.eu www.hoip.eu Tel: 020 7060 0619