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How can technology solve the challenges of an aging population

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The aging population is expected to sky rocket in the next decade and the United States has to rethink how it will deliver care for its elderly.
With recent advancements in technology, Aging in Place has emerged as strong solution to address this pressing need.

Published in: Technology
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How can technology solve the challenges of an aging population

  1. 1. HOW CAN TECHNOLOGY SOLVE THE CHALLENGES OF AN AGING POPULATION?
  2. 2. In the coming years, the US elderly population 65+ will surpass the young population in majority. The current care systems will not be able to sustain this increase due to 3 key problems: cost, access, and disconnect. Aging in place is emerging as the best solution for both individuals and the government. It is more economic and more aligned with the needs of the elderly population. • 89% of seniors wish to remain in their homes for as long as possible • It would allow savings of $550k over 10 years for the individual and $2-$3 billion per year for the government. Recent advancements in technology are the enablers for aging in place. Assistive technology for aging in place is expected to grow from $2 billion today to more than $20 billion by 2020. Aging in place solutions should cater the needs at the crossroads of smart home and digital health: • By 2019, the global smart home market will be $120 billion, with the US representing 17%. Almost 40% of households in the US will be equipped with smart home devices. • The total revenues for connected health and wellness should amount to $8 billion dollar by 2018. Quantified self is a young market that is projected to increase by 4x fold in the next 4 years. EXECUTIVE SUMMARY
  3. 3. The US population age 65+ was 44.7M in 2013 and represented 14.1% of the U.S. population. It is expected to grow to 21.7% of the population by 2040. By 2060, there will be about 98 million elderly. IN THE COMING YEARS, THE US ELDERLY POPULATION WILL SURPASS THE YOUNG POPULATION IN MAJORITY 2015 2040 2060 Baby Boomers Baby Boomers Baby Boomers Source: AARP 2015
  4. 4. 1 in 4 elderly Americans live in one of three states: California, Florida, and New York. Illinois, Michigan, New Jersey, Ohio, Pennsylvania, and Texas —account for another one-quarter of Americans age 65 or older 80+ senior facilities are concentrated in Florida counties (Marion County & Palm Beach County) Louisville, Kentucky is a very big player in long- term care, being one of the "headquarters in nursing home, rehabilitation, assisted living and home health administration”. SOME KEY LOCATIONS IN THE U.S. WHERE THE ELDERLY LIVE
  5. 5. THE CURRENT CARE SYSTEMS WILL NOT BE ABLE TO SUSTAIN THIS INCREASE DUE TO 3 KEY ISSUES 1) COST 2) ACCESS 3) DISCONNECT COST ACCESS DISCONNECT Being old is expensive • For the government through the healthcare programs of Medicare and Medicaid • For senior individuals and their families through out-of-pocket expenditures The existing settings will not be able to absorb the increasing number of seniors and there will be a lack of care givers available Seniors are both economically and emotionally burdened when they must leave their homes and are not allowed to maintain their preferred quality of life
  6. 6. At the federal level The retirement of the baby boomer generation is driving costs for Medicare and Medicaid to unprecedented levels. Medicare will drive costs from 2016-2023, with an average annual increase of 7.3 %. For this reason, the government is pushing for action to develop in-home health products, increase patient compliance, and improve disease prevention measures. At the individual level The older people get, the more healthcare they use, and the more personal costs they have from non covered medical bills In 2009, 94% of people aged 65+ paid for a portion of their health care out of pocket. THE CURRENT ECONOMIC MODEL TO SUPPORT THE ELDERLY POPULATION IS NOT SUSTAINABLE COST Source: PBS 2014, The Kaiser Family Foundation 2014
  7. 7. Americans rely a lot on family caregivers. In 2015, around 43.5 million families provided care for an older relative, and 14.9 million for a relative with Alzheimer’s or dementia. Given the future population changes, the caregiver support ratio will decline from its 2010 level of 7 potential caregivers for each person aged 80+ down to a ratio of 4:1 in 2030 and 3:1 in 2050 Caregiver support ratio (CSR) – "the number of potential family caregivers aged 45-64 for each person aged 80+" WITHIN THE NEXT 15 YEARS, THE US WILL FACE A SIGNIFICANT LACK OF CAREGIVERS FOR ITS ELDERLY POPULATION ACCESS Source: AARP, 2013
  8. 8. ACCESS THE 5 MAIN CARE SETTINGS FOR THE AGING POPULATION CAN BE BOTH VERY EXPENSIVE AND ARE ALMOST AT CAPACITY Independent Living Community Assisted Living Facility Residential Care Facility Continuing Care Communities Nursing Homes Capacity : 245,000 units Largest single provider: Holiday Retirement with a resident capacity of 40,440 and 315 retirement communities Capacity: 1,233,690 units 31,100 facilities From 2007 to 2010, supply has increased almost 18 % Capacity: 851,400 residents 713,300 actual residents 22,200 facilities Proportion of residential care communities with for- profit ownership: 78.4% Capacity: 570,000 units 350,000 actual residents 1,900 communities Capacity: 1.7 Million residents 1.4 million actual residents 15,700 nursing homes Proportion of nursing homes with for-profit ownership: 68.2% Source: AARP, 2012 ; Center for Disease Control & Prevention, 2012 ; Leading Age 2011
  9. 9. AGING IN THE PLACE IS THE IDEAL SOLUTION AFFORDABLE ACCESSIBLE ACCEPTED At an individual level, despite required remodeling costs, aging in place is significantly less expensive than senior care facilities At a federal level, aging in place allows savings for both Medicaid and Medicare enabling savings of $45K annually per participant, or $2-$3 Billion total annually. Most elderly people can remain in the house they’ve always lived in Seniors need a stable lifestyle. 89% of seniors wish to remain in their homes for as long as possible with the key reason being able to live under one’s own rules Source: U.S. Department of Housing and Urban Development 2013
  10. 10. Aging in place is a growing movement that focuses on keeping seniors in their homes longer as they age. One core element of aging in place is allowing a person to maintain their quality of life. Evidence suggests that programs that support aging in place may yield cost savings for families, government, and health systems. Aging in place has also been shown to have health and emotional benefits over institutional care. Assistive domotics or internet of caring things are home automation technologies that focus on making it possible for older adults and people with disabilities to remain at home, safe, and comfortable. This field uses much of the same technologies as home automation for security, entertainment, and energy conservation. “Assistive technology for aging in place is expected to grow from $2 billion today to more than $20 billion by 2020.” RECENT ADVANCEMENTS IN TECHNOLOGY AND ELDERLY TECH SAVINESS CAN MAKE AGING IN PLACE A REALITY Source: AARP 2015, Infinaims 2016, Aging In Place Technology Watch 2012
  11. 11. SENIORS ARE CLOSELY TAILING THE GENERAL POPULATION IN TECH ADOPTION, AND GROWTH IS EXPECTED TO CONTINUE 91% 55% 43% 86% 70% 77% 18% 27% 59% 47% Cellphone Smartphone Tablet/eReader Internet Broadband Tech penetration in the US, seniors vs general population (%) All adults 65+ 59% 47% 87% 76% 90% 82% Internet Broadband Tech penetration in the US, seniors vs general elderly population (%) All 65+ 65+ w/ college degree 65+ w/ >75k$ income Source: Pew Research Center, Older adults and technology use, April 2014
  12. 12. State policymakers and agencies have taken various steps to enable aging in place, including integrating land use, housing and transportation; efficiently delivering services; providing more transportation choices; and improving coordination and communication among levels of government. Certain land use policies can help older adults live closer to or within walking distance of the services they need • Integrating Land Use and Transportation Policy • Transit-Oriented Development (TOD) Increased mobility options can reduce reliance on transportation by personal car • Volunteer Driver Laws • Human Service Transportation Coordination Affordable, accessible housing can decrease institutionalization and meet consumer demand • Building Standards that Promote Accessibility • Naturally Occurring Retirement Community (NORC) IN THE MEANTIME, STATE LEGISTLATORS ARE PUTTING IN VARIOUS POLICIES TO SUPPORT SUCCESSFUL AGING IN PLACE Source: NCSL, Aging in place, 2011
  13. 13. Land Use Transportation Housing This is not an exhaustive map, it highlights the trending states Source: NCSL, Aging in place, 2011 IN THE MEANTIME, STATE LEGISTLATORS ARE PUTTING IN VARIOUS POLICIES TO SUPPORT SUCCESSFUL AGING IN PLACE
  14. 14. Homes with technologically advanced systems to enable domestic task automation, easier communication, and higher security. Quynh Le, 2012 The smart home market will reach $120 billion by 2019 — up from $33 billion in 2013. Juniper Research 2014 All healthcare-related applications, technologies and delivery systems that result from the confluence of medicine, genomics and the technologies that comprise the digital space. Digital Health makes use of interconnected technologies to embrace the entire spectrum of healthcare providers, consumers and researchers. Nuviun, 2014 The Digital Health industry is a conglomerate of many industries and is expected to exceed $200 billion globally by 2020. Arthur D Little, 2014 AGING IN PLACE IS AT THE CROSSROADS OF SMART HOME AND DIGITAL HEALTH, TWO BOOMING SECTORS Smart Home Digital Health
  15. 15. TECH ADVANCEMENTS HAVE LED TO A HORIZONTAL GROWTH FOR THE SMART HOME MARKET, NOW INTERSECTING WITH THE DIGITAL HEALTH MARKET "Home is the fastest growing setting for healthcare“ Rick Valencia, Sr. Vice President Qualcomm & General Manager, Qualcomm Life Digital HealthSmart Home Communications To contact loved ones To contact emergency services Smart sensors To keep track of daily activities To check adherence to a medication regimen Safety To detect burglary To detect falls & shocks Lighting To adapt lighting to user’s activities To help seniors with vision deficiency Source: The Future of Healthcare, 2015
  16. 16. Government AGING IN PLACE HAS BOTH PRIVATE & PUBLIC AND FOR PROFIT & NON PROFIT STAKEHOLDERS THAT COMPANIES NEED TO BE AWARE OF SENIOR CITIZENS AND THEIR FAMILIES 45M PEOPLE Associations/Non Profit Senior Care Settings Independent Living Community Assisted Living Facility Residential Care Facility Continuing Care Communities Nursing Homes Health Care Providers Nurses Hospitals Clinicians Solution Providers
  17. 17. Personal Communication Home Safety Health Care AGING IN PLACE IS COMPRISED OF 3 KEY SEGMENTS THAT ARE SCATTERED WITH BOTH INCUMBENTS AND YOUNG STARTUPS
  18. 18. SUCCESSFUL AGING IN PLACE SOLUTIONS CAN FACILITATE REMOTE CARE GIVING, HOME SAFETY, AND HEALTH CARE Remote Monitoring Medication reminders Daily medical testing Medical care coordination Healthcare Fall prevention Security Lighting Home Safety Remote Caregiving Family caregiving coordination Communication Relationships Fighting loneliness Source: Infiniaims 2015
  19. 19. Personal Communication Home Safety Health Care Must have • Easy onboarding • Accessible from any device • User friendly • Includes phone & video calls • Immediate detection • Alerts & notifications • HIPAA compliant • Medical grade Should have • Text messages • Cost effective • Easy onboarding • Customer support 24/7 • User friendly • Data analytics • Highly customizable • Nice design • Long range device coverage • Cost effective • Easy onboarding • Accessible from any device • Customer support 24/7 • User friendly • Data analytics • Highly customizable • Long range device coverage • Cost effective Would like to have • Customer support 24/7 • Includes all forms of communications • Nice design • Accessible from any device • Includes all forms of communications • Nice design PERSONAL COMMUNICATION IS DRIVEN BY CONVENIENCE WHILE HOME SAFETY & HEALTH CARE ARE DRIVEN BY RELIABILITY & ACCURACY
  20. 20. More than ⅓ of those aged 65+ live alone and the percentage rises with age. One third of informal caregiving occurs at a distance with family members coordinating provision of care, maintenance of independence, and socialization for frail elders living at home. 1. Better communication 2. Improved safety and monitoring 3. Greater focus on wellness and prevention 4. More opportunity to participate in society WHAT WILL IT TAKE TO SUCCESSFULLY AGE IN PLACE National Institute of Nursing Research, NIH, 2015

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