aging in place in the u.s

AGING IN PLACE: FOCUS ON THE U.S.MARKET

Prepared by Helene Andre, Market Research Analyst & Luka Grujic, Strategy Manager - HealthcareFor French Tech Hub

March 2016

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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.

In this presentation, French Tech Hub explores the dynamics of the U.S. aging population and gives an overview of the solutions that are being developed for Aging in Place.

I. Current challenges with the aging population II. Opportunity for Aging in Place

AGENDA


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


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, FL, which has 22,000 people age 80

or older, is home to The Villages, an entire city built up around retirees.

• Palm Beach County has 89 home health agencies, 3 senior centers, and many in-home care providers

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

Source: FTH analysis

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THE CURRENT CARE SYSTEM WILL NOT BE ABLE TO SUSTAIN THIS INCREASE DUE TO 3 KEY PROBLEMS 1) COST 2) ACCESS 3) DISCONNECT

Being old is expensive• For the government through the healthcare programs of Medicare and Medicaid• 94% of people aged 65+ paid for a portion of their health care out of pocket.

The existing settings will not be able to absorb the increasing number of seniors and there will be a lack of care givers available

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.

COST

ACCESS

DISCONNECT


Baby boomers are reaching closer to retirement and will put a huge burden on the cost of health care. 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 :1. Develop in home health products2. Increase patient compliance3. Improve disease prevention measures

THE RETIREMENT OF THE BABY BOOMER GENERATION IS DRIVING COSTS FOR MEDICARE AND MEDICAID TO UNPRECEDENTED LEVELS

COST

Source: PBS 2014


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


THE 5 MAIN CARE SETTINGS FOR THE AGING POPULATION ARE EXPENSIVE AND LIMITED IN CAPACITY

Independent Living Community

Assisted Living Facility

Residential Care Facility

Continuing Care Communities

Nursing Homes

245,000 units

$1500-$3500 /month.

Largest single provider: Holiday Retirement with

40,440 units in 315 retirement communities

Independent living communities are for aging individuals who are active

and want full control over all aspects of life

1,233,690 units in31,100 facilities

$2500-$4000 /month

From 2007 to 2010, supply has increased almost 18 %

Assisted living facilities are for aging individuals who

value independence but may need minimum help for their

daily living

851,400 units in 22,200 facilities

$3,500-$4,500 /month

Proportion of residential care communities with for-profit

ownership: 78.4%

Residential care facilities are for aging individuals that

require assistance with personal care or medical

needs

570,000 units in1,900 communities

Entrance fee $20,000-$1M then $500-$5,000 /month

Continuing care retirement communities are multi tier campus’ that offer all the

services of care under one roof

1.7 Million unitsin 15,700 nursing homes

$4,000-$8,000 /month

Proportion of nursing homes with for-profit ownership:

68.2%

Nursing homes are for aging individuals that require

serious health assistance with personal care or medical

needs

ACCESS

Source: AARP, 2012 ; Center for Disease Control & Prevention, 2012 ; Leading Age 2011; FTH analysis


I. Current challenges with the aging population II. Opportunity for Aging in Place

AGENDA


Aging in place“The ability to live in one's own home and community safely, independently, and comfortably, regardless of age, income, or ability level.“

Centers for Disease Control and Prevention

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 ARE MAKING AGING IN PLACE MORE AFFORDABLE & ACCESSIBLE

Source: AARP 2015, Infinaims 2016, Aging In Place Technology Watch 2012


At an individual level, aging in place (even when including remodeling costs) is significantly less expensive than senior care facilities that includes recurring annual fees.

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 (low estimate).

AGING IN PLACE IS A MORE ECONOMIC SOLUTION AT BOTH THE INDIVIDUAL AND FEDERAL LEVEL

Aging in Place Independent Living Communities




Nursing Homes

Individual Cost

$ 70K-100KOne time

$ 180K-420K for 10 years




$ 80K-1.6M for 10 years

Source: U.S. Department of Housing and Urban Development 2013 ; French Tech Hub analysis


AGING IN PLACE BENEFITS FROM THE TECH ADVANCEMENTS IN BOTH SMART HOME AND DIGITAL HEALTH MARKETS/SEGMENTS

Telemedicineto transmit key information to HCP

Communicationsto contact loved ones

SecurityTo detect unusual behaviors

& activities

SafetyTo detect falls & shocks

LightingTo adapt lighting to user’s

path & activities

Communicationsto contact emergency

servicesQuantified selfto keep track of daily

activities

Wearablesto collect data from users

Remote monitoringto check adherence to a medication regimen

AGING IN PLACE

Digital HealthSmart Home


“Home is the fastest growing setting for healthcare”Rick Valencia, Sr. Vice President Qualcomm & General Manager, Qualcomm Life


AGING IN PLACE HAS BOTH PRIVATE & PUBLIC AND FOR PROFIT & NON PROFIT STAKEHOLDERS THAT COMPANIES NEED TO BE AWARE OF

Government

SENIOR CITIZENS AND THEIR FAMILIES45M PEOPLE Associations/Non

ProfitSenior Care

Settings

Independent Living Community




Nursing Homes Health Care Providers

NursesHospitals

Clinicians

Solution Providers



AGING IN PLACE IS COMPRISED OF SEGMENTS THAT ARE SCATTERED WITH BOTH INCUMBENTS AND YOUNG STARTUPS

Smart Home & Home Safety Health Care


THE MOST ACTIVE IOT INVESTORS 2010-2015 by CB Insights


FUNDING CAN BE FOUND FROM ANGELS, VENTURE CAPITAL, CORPORATE VENTURE, AND CROWDFUNDING

Business Angels & VCs

Shasta Ventures: Nest Cota Capital: Canary, LunaGenerator Ventures is a stage agnostic investment fund focused on aging and long-term careLink-age Ventures: $27M fund dedicated to seniors

Crowdfunding & Others

AARP launched a $40 million fund to develop technology for seniors

CVCs

Samsung Ventures invests in digital health and smart home; 2 dedicated funds: Samsung Catalyst fund ($100M) and Digital Health Challenge ($50M)Intel and General Electric formed a joint venture in 2011 to transform the way that health care is delivered at home

HOW TO CONTACT US

ACCELERATING GROWTH FOR FRENCH TECH COMPANIES IN THE U.S.

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Boston, MA 02109San Francisco2415 Third Street, Suite 231San Francisco, CA 94107

Marie Buhot-Launay, Sales and Marketing Director

[email protected]

@frenchtechhub

www.frenchtechhub.com

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