In the same way that security providers provide monitoring services for the home in case of intrusion, there is an opportunity to leverage this same technology to provide monitoring services for medical-related emergencies in the home. Safety and security are at the core value of smart home and security solutions and are key drivers for the adoption of these services.
Security providers can diversify their consumer base by providing security-related packages with connected health and independent living solutions designed for protecting loved ones. Among home security owners already using personal emergency response technology, the top five main service uses are professional monitoring, GPS and location tracking, alerts sent to the appropriate individuals, 24/7 access to nurses and doctors, and regular check-in calls from a monitoring service.
The home is also a focal point for consumer health and wellness as the healthcare system shifts from fee-for-service (FFS) to value-based care. The US Department of Health and Human Services (HHS) had set a target to make 50% of all Medicare payments via alternative payment models by the end of 2018; in 2020, roughly 40% of US healthcare payments were tied to alternative payment models according to a survey by the Health Care Payment Learning & Action Network.
Many payment models make care providers responsible for patient outcomes, driving demand for connected solutions that quantify and address the gap in care between the facility and the home. Payment reform, consumerization of care services, and physician shortages create opportunities for connected health platforms and devices, as well as new channels to reach these consumers with these types of products.
For payors and care providers, transitional and chronic care programs are a focus to reduce costs for high-claim/high-cost patients, although they diverge in short-term versus long-term views. Care providers are focused on preventing 30-day readmission rates, while payors want to see long-term costs curbed. This time of sustained wellness requires a deeper understanding and engagement with the consumer’s environment, their family, work life, diet, and fitness regime. Companies with existing footprints in the home, like service providers, and those with monitoring services, like professional security and PERS monitoring companies are well positioned.
Providing solutions for aging consumers and their caregivers is a natural first step and will become increasingly necessary as demographics shift in the US and around the world. Security providers, like Alarm.com and Essence, are already taking this approach with home sensor-based and smart senior-focused solutions; however, providing these types of services and devices is an opportunity that has yet to be fully realized by security providers of any size
This is an excerpt from Parks Associates research library. For more information on our research, visit www.parksassociates.com. Also, consider joining our Connected Health Summit sessions that cover these topics.
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