Consumer Analytics

The Rising Demand of Long-Term Healthcare

by David Mitchel | Jun. 30, 2016

If you are noticing that there are more senior citizens around, your eyes are not mistaking you. The Baby Boomer generation—76 million strong—is beginning to hit the 65-year-old mark in large numbers. By 2025, the number of people between age 65 and 85 will account for 16.6% of the total population compared with an estimated 12.5% in 2013, or a net increase of almost 18 million.

At the same time, the “Silent Generation” is expected to live much longer than previous generations, thanks to medical technology advances and the quality of healthcare services that they receive in this country. The 85+ age group is expected to grow from 5.8 million in 2010 to 8.7 million in 2030.

As we age, more health issues become apparent, impacting the entire healthcare ecosystem. More than one out of four people age 65 or older have one or more health management challenges. 

Most long-term care service providers are coping with the rising demand amidst a capacity shortage and restrained funding/reimbursement from Medicare & Medicaid. Additionally, the private long-term care insurance market is too expensive and restrictive in benefits for its value, making this a highly unreliable revenue source for most long-term care service providers. 

Connected health devices, mobile devices, and apps could assist seniors as well as their caretakers with their healthcare needs and relieve some of the pressure on the healthcare system. The challenge, however, is to generate adoption and drive long-term usage of these solutions. Neither caregivers nor seniors in general are aware of the technological resources or wellness benefits available to them. Many own a smartphone and/or a tablet, but they are not comfortable using them for medical purposes. Also, caregivers’ interest in using apps to assist with their caregiving tasks far exceeds their current use.

For companies in or looking to enter the connected healthcare markets, especially areas for independent living solutions, they will need to prioritize education and outreach to both caregivers and seniors. The demand for independent living and caregiving solutions will continue to rise, as well as the pressure to produce better outcomes among the senior population, so developers and solutions providers that leverage education and outreach to increase consumer awareness are taking a significant step toward meeting these demands.

Parks Associates will discuss these efforts in detail at the upcoming Connected Health Summit: Engaging Consumers, August 30 - September 1, 2016, at the Omni Hotel San Diego.

David Mitchel

David Mitchel

Research Analyst

David Mitchel is part of the Parks Associates Consumer Analytics research team. He studies market and consumer trends in a number of areas, including Access & Entertainment, Connected CE, Energy Management, Connected Home Systems, Digital Media, Digital Health, and Mobile Devices.

Prior to working at Parks Associates, David spent 5 years working in a variety of marketing roles, gaining experience in a variety of industries. He earned a BA in Communication from the University of Arizona and an MBA from Thunderbird School of Global Management.

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