AAL Investment Forum 2010 - Assisted Living: A purchaser’s perspective

George MacGinnis

14 September 2010

Assisted Living:A purchaser’s perspective

© PA Knowledge Limited 2009.

Agenda

• Background

• Trends

• Business models

• Moving to scale


There is a real need to respond to ageing populations

The OECD identifies 4 main policy themes for healthy ageing:

• Improved integration in the economy and into society

• Better lifestyles

• Adapting health systems

• Attacking underlying social and environmental factors

But notes uncertainty over which of the policies are most cost effective

OECD HEALTH WORKING PAPERS NO. 42 POLICIES FOR HEALTHY AGEING: AN OVERVIEW, 16-Feb-2009, DELSA/HEA/WD/HWP(2009)1


There are some clear opportunities for change

Current systems are expensive and at times unnecessary:

• 90% of Older People want to live at home– In the UK nearly 200,000 people in

care could be supported at home

• Around 66% of men and 75% of women aged 85 and over have a long-term illness or disability – 1.6m emergency admissions for

patients aged 65 years and older in 2003/4 in the UK


Stronger evidence is stimulating demand

Large scale initiatives are underway:

• US VHA reports significant benefits for a service that cost $1600/patient/year*

• The EU has launched ‘Renewing Health’

• In the UK the NHS Whole System Demonstrators are looking at the impact on the wider care system

• Involving around 6000 ‘users’

• Heart failure, COPD, Diabetes

• Frail people

• Due to report ‘early 2011’* Care Coordination/Home Telehealth: The Systematic Implementation of Health Informatics, Home Telehealth, and Disease Management to Support the Care of Veteran Patients with Chronic Conditions, Darkins et at, Dec 2008


Technology is opening up new possibilities

Lifestyle monitoring

Community alarms Tracking

Biometric

monitoring

1990 2010 2030?

Wearable monitors

Intelligent therapies?

Personalised and pervasive smart care

http://images.google.com/imgres?imgurl=http://www.medisave.co.uk/images/m5i.jpg&imgrefurl=http://www.medisave.co.uk/popup_image.php/pID/269&h=178&w=210&sz=6&tbnid=i8cxZ-zXNQwJ:&tbnh=84&tbnw=99&start=3&prev=/images%3Fq%3Dblood%2Bpressure%2Bmonitor%26svnum%3D100%26hl%3Den%26lr%3Dlang_en%26newwindow%3D1%26safe%3Doff

http://images.google.com/imgres?imgurl=http://www.hsh.org/whats-new/images/glucose-monitor-grad.jpg&imgrefurl=http://www.hsh.org/whats-new/diabetes.htm&h=146&w=175&sz=6&tbnid=p8OhbtSR068J:&tbnh=79&tbnw=94&start=1&prev=/images%3Fq%3Dglucose%2Bmonitor%26svnum%3D100%26hl%3Den%26lr%3Dlang_en%26newwindow%3D1%26safe%3Doff


User/Patient

Communicationdevice

With subtle differences between consumer and formal provider perspectives

careprofs

Monitoring Service

careprofs

Clinical Provider

Self Care

Supported Care


Avoiding admissions

Long term costs

Sort-term RoI

Consumer market

High valueInvest-to-save

Payments have driven a focus on the most acute

Technology and infrastructure remain significant barriers to wider adoption

Patients ranked by risk


Scale demands greater integration

Engaging content and services

Better Case Finding, Commissioning and

Research

Smarter Working

Interoperability and patient choice


Reflections on the current market

• Covers a wider range of offerings

• Purchasing is dominated by the formal care providers

• Interoperability is a catalyst for innovation and growth

• Local, regional or global?

– Equipment different from services

– Building capacity will be crucial


Conclusions

• There is a gap between potential and addressable markets

• Evidence and experience moving beyond a few early adopters

• Drivers for formal provider and self care markets are distinct

• A complex environment in which standards will provide a platform for growth


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AAL Investment Forum 2010 - Assisted Living: A purchaser’s perspective

Health & Medicine

Transcript of AAL Investment Forum 2010 - Assisted Living: A purchaser’s perspective