Technology Meets Demand to Drive Growth for Telehealth Market
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1 Technology Meets Demand to Drive Growth for Telehealth Market JANUARY 2014 Author: Roeen Roashan
2 Technology Meets Demand to Drive Growth for Telehealth Market White Paper by IHS Introduction The aim of IHS in writing this white paper is to provide marketing and technical executives with an up-to-date assessment of the current state of the telehealth market and to forecast the impact of significant short- and longterm trends. This document provides detailed estimates of the telehealth market revenues and shipments in 2012 and forecasts growth for the years 2013 to The specification of this study was designed in conjunction with numerous leading companies in different parts of the telehealth value chain. Companies involved with defining the scope of the research included healthcare providers, telehealth vendors, manufacturers of consumer medical devices, suppliers of semiconductors and components, wireless specialists, telecoms service providers, and software developers. As a result, the white paper focuses on key issues that are fundamental to an in-depth understanding of the current structure and future development of the telehealth market. This document was written in relation to IHS s recent publication of World Market for Telehealth 2014 Edition. If interested in purchasing a copy of this entire report, go to the last page for contact info and other information regarding the report.
3 Technology Meets Demand to Drive Growth for Telehealth Market White Paper by IHS Scope There continues to be confusion surrounding the terms telehealth, telecare and telemedicine, and they are often used incorrectly or interchangeably. This white paper focuses on the use of medical devices and communication technology to monitor chronic diseases and symptoms that could develop into serious conditions. The product scope of this research is medical devices designed for use in the home for disease management. The estimates and forecasts of unit shipments and revenues include only those systems used in the home for professional telehealth services and do not include telehealth solutions used by the consumer directly for health and wellness purposes. IHS adopted the following definition for this report: Telehealth monitoring is the remote exchange of physiological data between a patient at home and medical staff in a hospital or at a healthcare provider to assist in diagnosis and monitoring. It includes (amongst other things) a gateway unit to aggregate readings from vital signs monitors for clinical review at a remote location (for example, a hospital or physician s office) using phone lines or wireless technology.
4 Issues in Healthcare of US GDP of World GDP Healthcare Expenditure 17% 9% More than 50% of annual deaths are due to chronic diseases. More than 20% of the world s population is 5o years or older. Government Initiatives The Affordable Care Act Repositioning of 3 Million Lives Shifting incentives from Quantity to Quality Answer from Providers Formation of Accountable Care Organizations Use of remote care technoologies such as Telemedicine & Telehealth Tech Solutions Mobile health hubs will become the main telehealth gateway in Wearable technology within medical & healthcare is growing by10%. Patient BYOD is a reality with mobile health hubs. Future of Telehealth Telehealth will play an critical role in delivering patient centred care. Interoperability & Connectivity Telehealth will treat over 7 million patients in Telehealth The Big Picture Technology Meets Demand to Drive Growth for Telehealth Market White Paper by IHS
5 Drivers & Barriers of Growth Lack of Interoperability Interoperability or lack of it leads to higher costs and provider lock-in, which in return increases the risk of investing in telehealth. Decreasing Costs Mobile Health Hubs Mobile health hubs are bringing down the costs of providing telehealth services. By the end of 2015, mobile health hubs will be the standard gateway for remote patient monitoring. Smartphones and tablets add interoperability and connectivity to telehealth, which will drive growth. Healthcare Reforms Healthcare reforms such as the Affordable Care Act in the US are changing the fundamentals of healthcare - moving away from fee for servive to quality of care. This is achieved by restructuring incentives for providers. Low Reimbursement Reimbursement is the key incentive in healthcare and determines how healthcare providers deliver care to patients. Telehealth is not reimbursed in most cases, but when reimbursed, it is as low as $10 per day. Patient-Centered Care Providers are shifting towards patient-centered care, given the changes in incentives. Telehealth is considered to be patient-centered as it provides the necessary care at the patient s home. Patient adherence increases with telehealth, implying an increase in quality. Health Monitoring High-growth product categories such as wearable technologies in sports & fitness, and wellness are expected to merge with telehealth solutions - supporting innovative product development to provide versatile healthcare to chronic diseased patients. Poor implementation If implemented ineffectively, telehealth leads to increased workload for healthcare personnel and increased costs, without any added value to the quality of healthcare. Physicians as a Barrier Physicians have developed a tenant/landlord relationship with the healthcare sector and in the process some have become bottlenecks for innovation in healthcare.
6 MARKET TRENDS The median age is approaching 50, and more than 20% of the worlds population is 50 years and older. 45% of adults aged 25 or older have been diagnosed with hypertension. By 2035, more than 592 million people will be diagnosed with diabetes. More than 450 million people suffer from mental illness worldwide. Healthcare as we know it is unsustainable. The only way to decrease healthcare expenditure is to increase quality. Reforms are shifting healthcare incentives towards quality and not quantity. innovative methods to refocus healthcare around the patient. Healthcare providers are actively seeking Interoperability and connectivity decreases costs and risk, and is critical for the success of telehealth or any other technology within healthcare. Telehealth vendors are shifting to mobile-based solutions. Smartphones and tablets offer interactive platforms that increase patient engagement and adherence.
7 Technology Meets Demand to Drive Growth for Telehealth Market White Paper by IHS World Revenues (in $m) 5, , , , , , , , , % 70% 60% 50% 40% 30% 20% 10% Services Devices Growth %
8 Technology Meets Demand to Drive Growth for Telehealth Market White Paper by IHS Telehealth Patients by Condition (in 000s) 8, , , , , , , , % 80% 70% 60% 50% 40% 30% 20% 10% Others Mental Hypertension Diabetes COPD CHF Growth %
9 Technology Meets Demand to Drive Growth for Telehealth Market White Paper by IHS Contact & Other Info The complete edition of World Market for Telehealth 2014 Edition by IHS provides a comprehensive analysis including forecasts for number of patients by conditions, health hubs by type, monitoring services by length of care, and peripheral devices by type. In addition to these, quantitative data on readmission rates and installed base are made available. Forecast period: Geographic Scope: Americas, EMEA, and APAC. Country-specific analysis is provided for the US, Germany, France, UK, Middle East, China, and Japan. The report includes a complete qualitative analysis on economic and demographic factors, trends in technology and healthcare. Markets insights from telehealth vendors, healthcare providers, device manufacturers, payers, telecommunication providers, and other subject matter experts are made available. Companies researched in relation to this report. If you are interested in purchasing a full copy of the report please contact: Roeen Roashan, Analyst Medical Devices & Healthcare IT Office: Mobile: Roeen.Roashan@ihs.com
10 Technology Meets Demand to Drive Growth for Telehealth Market White Paper by IHS
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