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Emerging Technologies for

Independent Living

Aging in America: ASA-NCOA Conference


March 18, 2009

Molly Coye, MD, MPH


Barbara Harvath, RN, BA
David Lindeman, PhD

1 © 2008 Health Technology Center


Introduction and Objectives

Beneficial Technologies

¾ Emerging technologies are having an ever greater impact on the field of aging, and no more so than in
the area of community-based independent living

HealthTech

¾ HealthTech is a non-profit research center that has been engaged in forecasting the future of beneficial
technologies for over 8 years

¾This presentation includes work done in collaboration with United Cerebral Palsy and through support of
The SCAN Health Plan

In this session we will:

1. Provide an Overview of promising technologies for maintaining the independence of older


adults in community-based settings

2. Present forecasts of specific technologies and their relationship to the workforce

3. Discuss challenges and opportunities for using beneficial technologies to support the
independence of older adults

2 © 2009 Health Technology Center


HealthTech’s Research Methodology

Literature
Review
Webinars
Technology Profiles
Stakeholder Expert
ExpertInterviews Expert
Analysis Interviews ExpertPanel
Panel Forecast & Trend Reports
Demonstration Projects
Developer and Education
Product Review

Analysis Forecasting Validation Diffusion

3 © 2009 Health Technology Center


Persons With Disabilities

46.1 million people (20.8%)


over the age of 15 have a
disability
30.5 million people
(13.7%) have a severe
disability
15.6 million people (7.0%)
have a non-severe
disability
17.6 million people (52.3%)
over the age of 65 have a
disability

4 © 2009 Health Technology Center


Challenges of the Aging and Persons with Disabilities

Everyday
ChangingLiving
Demographics
Activities Changing
Health Management
Demographics Staying Connected and
Supported
•ADLs: bathing, dressing, •Disease self-management
grooming, transferring, •Personal engagement
•Vision, hearing, sensory,
feeding, toileting •Lifelong learning
motor
•IADLs: using phone, taking •Social interaction
•Nutrition
meds, light housekeeping,
•Vital signs •Being supported by
preparing meals, managing
caregivers
finances, going outside alone •Exercise
•Leisure activities
•Home and personal safety •Fatigue/sleep
(fall prevention, wandering) •Emotional and spiritual well-
•Cognitive function being
•Mobility
•Care coordination
•Transportation

5 © 2009 Health Technology Center


Understanding Disability: Types of Impairment
There are 3 categories of impairments that can cause functional limitations:

Sensory – long-lasting blindness, deafness, or a severe vision or heading


impairment
• Examples: Blindness, deafness

Physical – a long-lasting condition that substantially limits one or more basic


physical activity such as walking, climbing stairs, reaching, lifting or carrying
• Examples: Muscular dystrophy

Cognitive – difficulty learning, remembering, or concentrating due to a


physical, mental or emotional condition lasting six months or more
• Examples: Dyslexia, Dementia

* These are definitions for disabilities from the American Community Survey (Census). They need to be
reworked.

6 © 2009 Health Technology Center


Depression: The Leading Cause of Disability Worldwide By 2030

By 2020, Depression will be the second leading cause of disability worldwide

Source: World Health Organization

7 © 2009 Health Technology Center


Needs of the Aging and Persons with Disabilities:

Shared Needs: Needs of


Needs of Health management, help with Persons
the ADL, IADL, staying connected With
Aging and supported, care Disabilities
coordination

8 © 2009 Health Technology Center


Stakeholder Analysis

Aging & Persons (Formal & Informal)


With Disabilities Caregiver’s
Needs & Needs &
Challenges Challenges

Technology Identifying technologies Builders &


Developers that maintain or improve Developers
Needs & quality of life and Needs &
Challenges level of independence Challenges
for the aging and PWD

Care Providers Human


& Insurers Service Orgs
Needs & Needs &
Challenges Challenges

9 © 2009 Health Technology Center


Stakeholder Research Needs

Builders and Technology Human Services Care Providers and


Developers Organizations Insurers

• Design • Quality of Life • Reimbursement

• Outcomes Data • Prevention • Outcomes Data

• Business Model • Safety • Policy changes

• Policy changes • Well-being • Workforce

• Policy changes

10 © 2009 Health Technology Center


Framework For Forecasts

Consumer
Service
Experience

Settings and Business


Facilities Models
Technology
Development, Adoption,
and Dissemination

Regulations
Workforce and
Standards

ICT

11 © 2009 Health Technology Center


Key Trends for Technologies of Independent Living

Consumer
Service
Experience
Many More People With Less Severe Functional Impairment

Consumers Become the Primary Drivers of Technology Adoption


Care Models
SettingsIncorporate
and Prevention and Self-Care Business
Facilities Models
Older Adult Bulge has Windfall Benefits for Persons With Disabilities
Technology
Mainstream Products Repurposed, Intuitive,
Development, Customized
Adoption,
and Dissemination
The Rise of the Algorithm

Cell Phones are the Primary Platform Regulations


Workforce and
Social Support and Connectedness Gain Importance
Standards
Downshifting Labor
ICT

12 © 2009 Health Technology Center


Example Trend: Consumers Become Primary Driver of Technology

TREND
Consumers become the primary driver of technology and service adoption.
Boomers, as family caregivers, begin to purchase lifestyle needs
technologies and services for their parents, and then continue to demand
and purchase technologies and services that enable independent living as
they age. Providers and payers will expand their adoption of medical needs
technologies and services due to persistent demand of consumers and
supporting translational research.
Important Technologies and Characteristics:
Discreet technologies
Personal safety
Monitoring and sensors
Safe designed housing
Telehealth/Remote Care
13 © 2009 Health Technology Center
Consumer Driven Technology Trend: Supporting Forecasts
Consumer Experience

•The desire to appear independent drives


development of discreet technologies and
services related to lifestyle needs.
0-2 years: Technologies with simple
interfaces and minimal features appeal to
older adults.
• Example: GreatCall’s Jitterbug

2-5 years: Discreet and affordable wearable


sensors are the major modality for collecting
physiologic and personal data in remote
monitoring applications.
5-10 years: Developers produce aesthetic Consumer
and functional technologies to meet large Service Experience
Boomer market.
Settings and Business
Facilities Technology Models
Development,
Adoption, and
Dissemination

Regulations
Workforce
and Standards

ICT
14 © 2009 Health Technology Center
Consumer Driven Technology Trend: Supporting Forecasts
Service
•Technology develops to help older adults safely
transport themselves, whether on foot, driving or
public transportation.
2-5 years: GPS-enabled cell phones are customized
to help older adults navigate on foot and on public
transportation.
• Example: iPhone, Blackberry
Geographical Information System (GIS) on cell
phones enable older adults to map where they live
relative to local services, to reroute public
transportation to suit their needs, etc.
5-10 years: Virtual reality driving simulators gain use
in clinical practice to assess executive functions and
make specific driving recommendations. Service
Consumer
Experience
• Example: Drexel University Applied Neuro-
Technologies Lab’s Virtual Reality Driving Settings and Business
Facilities Technology Models

Simulator, University of Florida’s Independence Development,


Adoption, and

Drive Program Dissemination

Regulations
Workforce
and Standards

ICT
15 © 2009 Health Technology Center
Consumer Driven Technology Trend: Supporting Forecasts
Settings and Facilities

•Consumer demand for independent living drives senior living facility design.
0-2 years: Senior living facilities adopt cognitive fitness, sensor and monitoring
technologies initially in more high-end housing.
• Example: Eskaton’s National Demonstration Home
2-5 years: Senior living facilities partner
with universities to create learning
communities
• Example: Hebrew SeniorLife’s
NewBridge on the Charles

5-10 years: Design elements that


promote physical and psychological well
being become wide spread
Consumer
Service
Experience
Settings
and Business
Technology Models
Facilities Development,
Adoption, and
Dissemination

Regulations
Workforce
and Standards

ICT
16 © 2009 Health Technology Center
Consumer Driven Technology Trend: Supporting Forecasts
Workforce

•New roles emerge to navigate complex systems.


0-2 years: Roles of care coach/manager, ombudsmen, mentors, super-users expand and
proliferate.
2-5 years: Increased importance of and demand for web managers in complex service
organizations.
5-10 years: Systems integrators needed to manage increasingly interdependent operations:
reimbursement, PHR/personal health info, supply chain and Durable Medical Equipment
(DME)/equipment, social/gaming, and services.

Consumer
Service
Experience

Settings and Business


Facilities Technology Models
Development,
Adoption, and
Dissemination

Regulations
and Standards

Workforce
ICT
17 © 2009 Health Technology Center
The Growing Need for Direct-Care Workers

Between 2000 and 2030, the number of US elders will increase by 104% while women aged 25 to 44
(the traditional source for direct care workers) will increase by only 7%.

18 © 2009 Health Technology Center


The Growing Need for Direct-Care Workers

•The majority of direct-care workers are now employed in home- and community-based settings,
and not in facility-based long-term care settings.

•By 2016, home- and community-based direct-care workers are expected to outnumber facility
workers by nearly two to one.

19 © 2009 Health Technology Center


Consumer Driven Technology Trend: Supporting Forecasts
Information & Communication Technology
•Sensors and monitoring technology evolve to be less intrusive, easier to use, and more
flexible.
0-2 years: Due to the early stage of the development, the use of monitoring and sensing
technologies is limited to a few simple and basic applications.
• Example: Tunstall’s Falls Management System, QuietCare
0-2 years: Monitoring of physiological data and personal data is done discreetly through
wearable sensors.
2-5 years: Environmental monitoring appliances are designed with plug-and-play capability
to meet the evolving monitoring and support needs of consumers.
5-10 years: Personal and environmental monitoring converge. Cell phones become the
main data collection device.

Consumer
Service
Experience

Settings and Business


Facilities Technology Models
Development,
Adoption, and
Dissemination

Regulations
Workforce
and Standards

20 © 2009 Health Technology Center ICT


Aging and Technology Use
Internet Penetration

•A third of seniors (age 65 and older) have the Internet at home.

•More than two-thirds (70%) of the next generation of seniors (50-64 year-olds) have
gone online.

Internet Usage
51% of adults age 60-69 go online 26% of adults age 70+ go online
• 88% use email • 86% use email
• 72% get health info • 65% get health info
• 75% get hobby info • 56% get hobby info
• 67% get news online • 53% get news online

Broadband Use

•Those age 50 and over experienced a 26% growth rate in home broadband
adoption from 2007 to 2008.

•Half of Americans between the ages of 50 and 64 have broadband at home. Some 19%
of those 65 and older had home broadband access as of April 2008.

Cell Phone Use

• 50% of Americans age 65 and older have a cell phone.

What are they doing on line?

21 © 2009 Health Technology Center


Consumer Driven Technology Trend: Supporting Forecasts
Regulations and Standards

•Regulation changes lag despite pressure from older adults and persons with disabilities
to adapt environments for accessibility.

0-5 years: Higher visibility of


environmental challenges for persons
with disabilities brought by aging
populations.
5-10 years: Better access in public and
commercial areas, but low-income
housing remains a challenge because of
the lack of market power.
5-10 years: Housing developers begin
going beyond code standards toward
individualization for residents’ needs, but
face challenges with local regulators. Service
Consumer
Experience

10+ years: ADA criteria expands to Settings and Business


Facilities Technology Models

reflect the changing population. Development,


Adoption, and
Dissemination

Workforce
Regulations
ICT
and
22 © 2009 Health Technology Center
Standards
Consumer Driven Technology Trend: Supporting Forecasts
Business Models

•Willingness to pay for services out-of-pocket and lack of reimbursement cause


technology developers to shift focus away from institutions to individual consumers.
0-2 years: Care-in-place and remote monitoring technologies continue to be paid for out-of-
pocket.
•Example: Centura Health at
Home’s Home Care

2-5 years: Community living facilities


pay for inclusion of beneficial
technologies in new construction, but
pass the costs on to the consumer.
5-10 years: Fee-for-service bundled
packages of technology and in-home
technical support become available. Consumer
Service
Experience

5-10 years: commercially available Business


technologies such as assistive devices
Settings and
Facilities Technology
Models
Development,

and home health monitoring become Adoption, and


Dissemination

widely available in retail stores. Workforce


Regulations
and Standards

ICT
23 © 2009 Health Technology Center
Baby Boomers as Caregivers for their Aging Parents

• More than 15 million take care of their aging parents, a


responsibility that often includes paying for all or part of their
housing, medical supplies and incidental expenses. Many
costs are out of pocket and largely unnoticed: clothing, home
repair, a cellular telephone.

• Adult children with the largest out-of-pocket expenses are


those supervising care long distance, those who hire in-
home help and those whose parents have too much
money to qualify for government-subsidized Medicaid but
not enough to pay for what could be a decade of frailty and
dependence.

• The burden is compounded by ignorance, according to a study


by AARP, released in mid-December, which found that most
Americans have no idea how much long-term care costs
and believe that Medicare pays for it, when it does not.

• Families have always looked after their elderly loved ones. But
never has old age lasted so long or been so costly,
compromising the retirement of baby boomers who were
expecting inheritances rather than the shock of depleted
savings.

24 © 2009 Health Technology Center


The Perfect Storm
Stakeholders, whether they are developers, policy makers, providers, or the consumers
themselves, are all interested in the different ways of keeping this population healthy at home.

Changing Demographics
Scarce Resources
- Increased longevity
- Uncertainty of government
- Age wave
safety net programs
- Increased disability incidence
- Uncertainty over individual
- Increased chronic disease
financial security
among older adults
- Overstretched healthcare $
- Increased desire to lead
- Workforce shortages
independent lives at home Technologies for
Independent
Living

Technological Innovation

25 © 2009 Health Technology Center


The Challenge: Chronic Diseases and the U.S. Care Experience
Several themes predominate in the care management of U.S.
residents with chronic diseases compared with residents of
other nations with such conditions:
High cost of care with an emphasis on high personal cost
• 54% did not receive recommended medical care, fill
prescriptions or visit a physician at some point because of high
costs, compared with 7% of participants in the Netherlands

• 41% spent more than $1,000 on out-of-pocket medical costs


last year, compared with 4% of participants in Britain and 5%
of participants in France

Medical errors
• One-third experienced a medical or medication error, received
incorrect laboratory test results or experienced delays in test
results, the highest rate among participants

Lack of access and continuity across sources of care


• Almost half wasted time because of disorganized care or had
received care of limited or no value during the past two years,
the study found

26 © 2009 Health Technology Center


Remote Patient Management Technologies:
A Disruptive and Transformative Solution To A National Health Care Challenge

The health care system is ill-


equipped to manage the growing
disease burden challenge
New business models are
emerging in response to policies
designed to improve outcomes
and reduce spending
Remote patient management
technologies are an opportunity to
advance national health care goals
Remote patient management
technologies are a disruptive and
transformative technology
Adoption and diffusion paths
reflect a balance between
technology, policy and market
interests

27 © 2009 Health Technology Center


The Telehealth Process

Person interacts with Personal information is Caregiver or clinician


telehealth device collected & transmitted receives data & uses

Data collected includes: Data transmitted over: Results include:

•Vital signs (blood •Video over low- •Enhanced communication


pressure, glucose meters, bandwidth POTS between caregivers,
pulse oximeters, weight) providers, and patients leads
•Video over IP
to improvements in:
•Physical and emotional
•LAN/WAN - care coordination
well-being assessment
•Broadband - caregiver support

•Reduce unnecessary visits

•Improve medication
compliance

28 © 2009 Health Technology Center


The Opportunity: RPM of patients with congestive heart failure
The New England Healthcare Institute’s Research Update: Remote Physiological Monitoring reports the
following cost savings for all Class III and Class IV heart failure patients, assuming that 80% of the 1.59 million
patients in these two classes, or 1.27 million patients, will be hospitalized in a year, at an annual cost of $2,052
per patient for the monitoring technology ($2,802 with DM software):
60% reduction in hospital readmissions compared to standard care and a 50 percent reduction in hospital
readmissions compared to disease management programs without remote monitoring.
Based on the potential to prevent between 460,000 and 627,000 heart failure-related hospital readmissions each
year, NEHI estimates an annual national cost savings of up to $6.4 billion dollars.

The annual cost of a heart-failure related


hospitalization per patient ranged from
$5,632 for RPM patients to $11,387 for
disease management without RPM
patients to $13,468 for standard care
patients.
The net savings of RPM technology (i.e.
savings after the costs associated with
interventions) were $3,703 per patient per
year for those with disease management
programs and $5,034 for those with
standard care.

29 © 2009 Health Technology Center


The Early Adopter Experience: Veterans Health Administration

The cost of the program is $1,600 per


patient per annum. This compares with
direct cost of VHA’s home-based primary Age Distribution of all CCHT Patients
care services of $13,121 per patient per
annum, and market nursing home care
rates that average $77,745 per patient per
annum.
Since VHA implemented CCHT, a total of
43,430 patients have been enrolled in the
program. CCHT patients increased from
2,000 to 31,570 from 2003 to 2007. VHA
plans to increase its NIC services 100%
above 2007 levels to provide care for
110,000 patients by 2011, or 50% of its
projected NIC needs.
VHA attributes the rapidity and robustness
of its CCHT implementation to the “systems
approach” taken to integrate the elements
of the program. Wherever possible, CCHT
incorporated existing business processes to
reduce the program’s overhead costs and
increase efficiency.

30 © 2009 Health Technology Center


Significant Barriers Remain to RPM Adoption and Diffusion
Principal barriers include the limited experience of most providers with this technology, poor
preparation for adopting such technologies, and lack of financial models that document return on
investment.

NEHI updated its 2004 findings on barriers to RPM adoption in Remote Physiological Monitoring to
include:
Inadequate reimbursement: Medicare does not widely support remote health services, nor do about half
of the state Medicaid programs, but approximately 130 insurance companies now provide coverage for
telemedicine in some capacity.
Provider concerns: Providers remain concerned that telemedicine will generate large volumes of
additional work, increase legal liability, and lead to the loss of traditional provider control.
Limited patient awareness: Patient awareness of RPM remains low because there is a limited amount of
public information available and that which is available is not reaching the target audience – seniors, the
chronically ill and their caretakers.
Information technology barriers: The lack of interoperable connectivity standards among providers, the
spotty adoption of electronic medical records, and the lack of infrastructure in rural areas must all be
addressed before RPM technology can diffuse widely in the marketplace

31 © 2009 Health Technology Center


Policy Change To Support Broad RPM Diffusion Will Drive Cost Savings

Analyzing data from the remote monitoring program at the VA, as well as other smaller programs,
Better Health Care Together finds the US health care system could reduce costs by nearly $200
billion during the next 25 years if remote monitoring tools were utilized much more widely and
supported by specific policy adjustments that include reimbursing health care organizations for
remote care and encouraging continued investment in broadband infrastructure.

Estimated Savings and Gain from Policy Implementation, by Condition

Net Present Value of Net Present Value of Gain From Policy


Savings – Baseline Case Savings – Policy Case Change

CHF Patients $79.7 Billion $102.5 Billion $22.8 Billion

Diabetes Patients $42.3 Billion $54.4 Billion $12.1 Billion

COPD Patients $18.7 Billion $24.1 Billion $5.4 Billion

Chronic Skin Ulcer Patients $12.5 Billion $16.0 Billion $3.5 Billion

Total $153.2 Billion $197 Billion $43.8 Billion

Source: Vital Signs via Broadband: Remote Health Monitoring Transmits Savings, Enhances Lives

32 © 2009 Health Technology Center


Ideal Technology Deployment: Stakeholder Alignment
Government & Payer Healthcare Provider
Disease
Efficient &
Partial or Full Supportive management
effective care
Reimbursement Policy & prevention
coordination
focus

Successful
Technology Deployment

Vendors Community Services Provider

Business model Underlying Consumer


Caregiver
is affordable infrastructure education &
buy-in
& scalable in place trust

33 © 2009 Health Technology Center


Center for Technology and Aging

Initiative of The SCAN Foundation and HealthTech


3-year grant of $5 million to establish the nation’s first center devoted exclusively to advancing the
use of technologies that enhance home and community-based care for seniors.
Address the continuing challenge of adoption, expansion and sustainability of creative technologies
that benefit the health and healthcare of older adults and the long-term care work force.

Goals
Identify and evaluate best practices in the diffusion of emerging technologies.
Serve as a state and national resource base for providers and policymakers who are engaged in
the expansion of technology that improves the quality and efficiency of long-term care services.
Develop supportive tools to accelerate adoption of technologies that improve the care and well
being of older adults.

34 © 2009 Health Technology Center


Center for Technology and Aging

Center for Technology and Aging Activities


Grant program to test diffusion strategies starting in 2010
Research and evaluation on adoption and diffusion strategies
Technical assistance tools
Policy and position papers that support the adoption and diffusion of beneficial technologies
National dissemination of information concerning successful strategies and programs through web
page, e-newsletter, fact sheets, white papers, and publications

The Center will focus on an array of technologies, including among others:


Remote patient management
Medication management
Cognitive assessment
Assistive technologies
Caregiver communication

35 © 2009 Health Technology Center


Translating Expert Research and
Partner Networks Into Results
Molly Coye
CEO
415-537-6966 assistant’s phone
415-537-6949 fax
mcoye@healthtech.org

David Lindeman
Director-Center for Technology and Aging
Senior Advisor - HealthTech
415-537-6598 phone
415-537-6949
dlindeman@healthtech.org

Barbara Harvath
Senior Advisor
415.537.6969 phone
415.537.6949 fax
bharvath@healthtech.org

Center for Technology and Aging


524 Second Street, 2nd floor
www.healthtech.org Health Technology Center San Francisco, CA 94107
nd
524 Second Street, 2 floor
San Francisco, CA 94107

36 © 2008 Health Technology Center

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