with connected health technologies - parks associates€¦ · - positional/movement sensors...

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www.ParksAssociates.com | 972.490.1113 | © PARKS ASSOCIATES 1

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Engaging Consumers with Connected Health Technologies

Presenters Jennifer Kent Senior Analyst, Parks Associates

Harry Wang Director, Health & Mobile Product Research, Parks Associates

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Audio Recording

›To replay the webcast, click here: https://attendee.gotowebinar.com/recording/8090972176645867521

https://attendee.gotowebinar.com/recording/8090972176645867521�

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Webcast Agenda

›Connected health market: segments and trends ▪Key market segments

▪Market drivers/trends

▪Major players

›In focus: wearables ▪Wearable’s Impact on Health & Fitness

▪Key players’ wearable strategies

› Connected health consumers – who are they? ▪Consumer segmentation

▪Health consumers’ motivations

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Connected Health Market: Segments & Trends

Wellness & Fitness Virtual Care

Chronic care management through connected technologies

HOW WE DEFINE CONNECTED HEALTH

Independent Living

A $9 billion+ Opportunity by 2017

$1.2 billion Revenues by 2018

A $14 billion Potential by 2018

A $6.5 billion Consumer Market by 2018 (without Apple’s Impact)

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Connected Health: Engaging Consumers

Engage Consumers at Every Care Decision Touch Point

HOSPITAL

DOCTOR’S OFFICE

WORK HOME

FITNESS CLUBS

RETAIL • EHRs • Work Flow • Telemedicine

• ePrescribing • Patient Portals • Virtual Care

• Independent Living • Chronic Care Mgmt • Care services shopping

• Wearables • Health apps

• Convenience Care • ePrescribing • Healthy living

choices

• Convenience Care • Wellness Programs

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Connected Health Drivers - Regulatory

›Affordable Care Act ACO momentum picks up §Participation on the rise

§CMS review finds Medicare Shared Savings ACOs and Pioneer ACOs generated $380M+ in savings after 12 months in operation

Incentives for patient outcomes § Incentives to decrease re-admissions

§Push for preventative care

§Market opportunities

§ Need to fill gap in care between office visits

§ Need devices/services to make self-care more intuitive & accountable

›HITECH Act Incentives for health data digitization § As of April 30, 2014, 477K care providers

are eligible for incentive payments and 383K care providers have received payment

§CMS has paid more than $15.4B through the Medicare EHR Incentive Program

§CMS has paid more than $7.9 billion through the Medicaid EHR Incentive Program

Incentives for patient engagement §Moving from MU Stage 1 to MU Stage 2

requires greater patient outreach and engagement with care technologies

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Connected Health Drivers - Technology

▪Mass adoption of smartphones

▪Product design breakthroughs ▪ - Positional/movement sensors (accelerometer, gyroscope, GPS/geo-fencing)

▪ - Health sensors (heart rate, sleep quality)

▪ - User-friendly interfaces

▪Booming Health App Ecosystems

0%

20%

40%

60%

80%

Q1/2010 Q1/2011 Q1/2012 Q1/2013 Q1/2014

Smartphone Ownership Among BB HHs 2010- 2014

©2014, Parks Associates

0%

10%

20%

30%

40%

50%

60%

70%

Health and Fitness Apps Apps Overall

Gro

wth

in D

aily

App

Ses

sion

s

Growth in Health App Engagement December 2013-June 2014

Source: Flurry Analytics Associates

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›Consumer Empowerment ▪Data Transparency

▪Pricing Transparency

▪Reviews, Ratings, & Second Opinions

Connected Health Drivers – Consumer Trends

›Demographic Shifts ▪Rapidly aging population § 20% of US population 65+ by 2020

§ Rise in Chronic Conditions

§ Market Opportunities:

– Chronic care management

– Independent living

– Caregiver needs

▪Younger consumers embrace ▪technology § Mobile first

§ Social sharers

§ Quantified self

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Wearable Health Tech

Health

EARS

Fitness

Security & Safety

Home & Lifestyle

Communication Infotainment EYES

WRIST

FINGER

CHEST/NECK

UPPER ARM

HEAD

SHOES

CLOTHES SENSORS

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Wearables for Health and Wellness

Wearable for Health &

Wellness

M2M Connections

Smart watch with Fitness

Features

Health Devices for

Personal Use

Medical Devices for Clinical Use

Health Wellness

Fitness & Wellness Devices

Health and Wellness Apps

Health & Wellness Data

Software & Gateway

Data and Analytics

EHR PHR

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0

2

4

6

8

10

2010 2011 2012 2013

Mill

ions

of U

nits

U.S. Digital Activity Tracker Unit Sales (2010-2013)

Connected Digital Activity Tracker

Non Connected Digital Activity Tracker

Tracking market growth

Parks Associates Industry Report: Wearable Computing: Fitness and Health in Style © 2014 Parks Associates

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Fitbit dominates the fitness tracker market

0% 5% 10% 15% 20% 25% 30% 35% 40%

Other

Basis

Philips DirectLife

Striiv

Adidas MiCoach

Jawbone Up

BodyMedia Fit

Polar

Garmin

Nike Fuelband

Nike+ Sensor

Samsung

Fitbit

% Own Specified Brand

Fitness Tracker Brand Adoption (Q2/14)* "Which type of digital pedometer or fitness/activity tracker do you use?"

(Among Consumers in BB HHs who Own and Use a Pedometor/Fitness Tracker, n=284, ±5.82%)

Source: 2014 Q2 Survey N=10,000 Broadband heads-of-households ©2014 Parks Associates

*Preliminary results; final tabulation may change

6% of consumer in

BB HHs report owning and personally

using a digital pedometer or

fitness tracker.

5% are very likely to buy

one in the next 12 months.

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Key Players: Wearable Market for Health & Wellness

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Apple-Mayo-Epic Alliance—Good or Bad

q These market leaders will set momentum to drive healthcare industry more consumer centric

q Collaboration will make EMR and health systems more open with data sharing, which is a thorny issue for market growth

q The partnership will foster similar moves from each’s competitors, creating a healthy competition

q Apple and Epic are notoriously closed systems in their respective industry; such collaboration may leads to even more closed ecosystem that drives competitors out of market

q Epic is slow-moving and its software is built on legacy technology. Integration is going to fail because of technology or cultural clashes

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0% 10% 20% 30% 40% 50%

Participated in online support group

Communicated electronically with healthcare or health insurance professional

Stored health information electronically

Used device to track health patterns

Used health app

Used website for appointments, lab results, or prescriptions

Used provider or insurer website

Looked up health info online

Digital Health Activities (Q4/13) "Q4015. Over the last 12 months, on how many days have you…"

(Among BB HHs Surveyed, n=832, ±3.4%)

% Engaging in Activity

A substantial number of consumers use digital tools to manage their health.

Source: American Broadband Households and Their Technologies Q4 2013 N=2,500 Broadband heads-of-households © Parks Associates

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Parks Associates segmented consumers into four groups based on their health conditions and activities.

Healthy and Engaged (Health conscious, don't

have chronic health problem)

Young and Indifferent (Not health conscious,

don't have chronic health problem)

Challenged but Mindful (Health conscious, have chronic health problem)

Unhealthy and In Denial (Not health conscious,

have chronic health problem)

Health Groups (Q4/13) (Among BB HHs Surveyed, n=832, ±3.4%)


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The Young and Indifferent segment is less likely to look up health info online.

0%

10%

20%

30%

40%

50%

Communicated electronically

withhealth professional

Participated in online support

group

Used website for

appointments, lab

results, or prescriptions


Stored health information

electronically

Used device to track health

patterns

Used health app Looked up health

info online

Healthy and Engaged (n=215, ±6.68%) Young and Indifferent (n=173, ±7.45%)

Challenged but Mindful (n=212, ±6.73%) Unhealthy and In Denial (n=232, ±6.43%)

Digital Health Activities by Health Groups (Q4/13) "Q4015. Over the last 12 months, on how many days have you…"

(Among Respondents in Specified Groups)

% E

ngag

ing

in A

ctiv

ity


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Health conscious consumers use digital health tools more frequently than others.

0

1

2

3

4

5

6

7

8

Used website for appointments,

lab results, or

prescriptions

Communicated electronically with health professional


Participated in online support

group

Stored health information

electronically

Used health app Looked up health info online

Used device to track health

patterns

Healthy and Engaged (n=215, ±6.68%) Young and Indifferent (n=173, ±7.45%) Challenged but Mindful (n=212, ±6.73%) Unhealthy and In Denial (n=232, ±6.43%)

Avg. # of Digital Health Activities by Health Groups (Q4/13) "Q4015. Over the last 12 months, on how many days have you…"

(Among Respondents in Specified Groups, Outliers Excluded)

Avg.

Tim

es o

ver l

ast 1

2 M

onth

s


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Lack of time, motivation, and energy are constant obstacles to exercising regularly

0% 20% 40% 60%

Other No opportunities to play team sports I enjoy

Unsure how to exercise properly Friends/family not interested in exercising with me

Too tired because I habitually stay up late doing lesiure activities Exercise equipment/gym fees/personal trainer are too expensive

No convenient place to exercise Exercising is too difficult for me

Too tired because I'm unable to get sufficient sleep Job or schedule makes it difficult to exercise

Have very little free time Rather do other things with my free time

I do not like to exercise Difficult to stay on a regular exercise schedule

I lack the motivation to exercise

% Selecting Obstacle to Exercise

Obstacles to Exercising Routinely (Q2/14)* "Which of the following make it difficult for you to routinely exercise?"

(Among Consumers in BB HHs Who find it Difficult to Exercise Routinely, n=2,104, ±2.14%)

Source: 2014 Q2 Survey N=10,000 Broadband heads-of-households ©2014 Parks Associates *Preliminary results; final tabulation may change

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Doctors playing a minor role in fitness tracker adoption

0% 20% 40%

It was or it will be a gift

My doctor recommended it

A family member or friend recommended it

I need to better manage an underlying health condition

It will make my current exercise routine more convenient or engaging

I want to live a healthier lifestyle

I want to lose weight

I want to more easily track my health or fitness data

% Selecting Motivation for Purchase

Motivations for Fitness Tracker Purchase (Q2/14)* "Which of the following are motivations behind your purchase or likely purchase?"

(Among Consumers in BB HHs Who Own and Use a Pedometer/Fitness Tracker or are likely to buy a Pedometer/Fitness Tracker in the Next 12 Months, n=552, ±4.17%)

Source: 2014 Q2 Survey N=10,000 Broadband heads-of-households ©2014 Parks Associates *Preliminary results; final tabulation may change

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6% of respondents said a doctor personally recommended they use a app to manage their health.

Yes

No

I am not sure

Source: Consumers & Technology Q3 2013 N=3,000 Broadband heads-of-households © 2013 Parks Associates

Mobile Health App Recommended by Doctor (Q3/13)

"Q4050. Has a doctor ever personally recommended you use a smartphone/tablet app to manage your health?"

(Among All BB HHs, n=3,000, ±1.79%)

Unlikely (rating 1-3)

Neutral (Rating 4)

Likely (rating 5)

Very Likely (rating 6-7)

Likelihood Of Using Doctor-Recommended Mobile Health App (Q3/13)

"Q4075. If your doctor recommended you use a mobile app to manage your health, how likely would you be to download and use the app as recommended?"

(Among Respondents Whose Doctor Did Not Recommended Health App, n=2,825, ±1.84%)

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Doctor follow-ups increase users’ perception of health app effectiveness.

75% of all health app

users believed the

health app improved

their health condition.

70% of all

prescribed health app users said

their doctor followed-up on their app

use. 0%

20%

40%

60%

80%

100%

Doctor Followed Up (n=123, ±8.84%)

Doctor Did Not Follow Up (n=52, ±13.6%)

% R

epor

ting

The

Heal

th A

pp Im

prov

ed T

heir

Heal

th

Health Improvement by Doctor Follow-Up About App Usage (Q3/13)

Source: Consumers & Technology Q3 2013 N=3,000 Broadband heads-of-households ©2013 Parks Associates

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Presenters Jennifer Kent Senior Analyst, Parks Associates

Harry Wang Director, Health & Mobile Product Research, Parks Associates

Thank you.


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John Mattison Chief Medical Information Officer Kaiser

Adam Pellegrini Vice President, Digital Health Walgreens

James R. Mault M.D., F.A.C.S. VP and Chief Medical Officer Qualcomm Life

Chris Young VP, New Virtual Market Development and Incubations Ascension Health

Chris Nicholson VP and COO Humana Wellness

KEYNOTE SPEAKERS


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Connected Health Summit: Engaging Consumers will provide industry players with in-depth analysis and industry perspective on what the connected healthcare revolution — and the resulting consumerization of healthcare — means for their businesses.

›Why Attend:

›Who Attends: § Device makers and distributors

§ Healthcare providers

§ Insurance and health institutions

§ Software and app developers

§ Telecom and broadband service providers

§ Technology enablers

§ Brands and merchants

§ Mobile infrastructure providers September 4-5, 2014 The Omni Hotel, San Diego

§ Hear emerging service provider strategies and business models integrating health monitoring and wellness

§ Understand how the Affordable Care Act (ACA) is placing the consumer in charge of healthcare decisions

§ Discover how social networking, mobile, and apps are reshaping consumer interests and behaviors and affecting a growing number of industries, including health & wellness

§ Learn how new legislation shifts are increasing demand for telehealth products and services

§ Network with leaders in the connected health industry with a specific focus on the consumer

§ Evaluate new mobile infrastructure technologies enabling mobile health solutions

CHARTER SPONSORS

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Agenda

›Technology and Partnerships ▪ Research Presentation The Connected Consumer: Current

State of the Digital Health Market

▪ Discussion Panel Healthy Living, Connected Devices, and Wearables

▪ Keynote Fireside Chat The Shift to Consumer-Centric: Perspectives from Health Systems § John Mattison, Chief Medical Information Officer, Kaiser, and

§ Chris Young, VP, New Virtual Market Development and Incubations, Ascension Health

▪ Population Health Management: Tracking Technology’s Impact

▪ Keynote § Christopher J Nicholson, Vice President, Humana Wellness

▪ Discussion Panel Path to Quality of Care: Leveraging Technology for ACOs

▪ Discussion Panel Independent Living: Engaging the Elderly and Caregivers

▪ Discussion Panel The Role of Connected Devices in Digital Health

▪ Keynote § James R. Mault, M.D., F.A.C.S., Vice President and Chief Medical Officer,

Qualcomm Life

›Consumer Engagement and Change ▪ Research Presentation Connected Devices, Digital Health

Services, and Health

▪ Discussion Panel Moving the Digital Health Market Forward: Consumers Take Charge

▪ Keynote Consumer Engagement As A Loyalty Strategy

§ Adam Pellegrini, Vice President, Digital Health, Walgreens

▪ Research Presentation Consumer Segmentation: Are you Engaging Them the Right Way?

▪ Discussion Panel Incentivizing Behavioral Changes: The Impact of Apps and Big Data

▪ Discussion Panel Healthcare Purchasing Decisions: The Power of the Informed Consumer

▪ Discussion Panel Effective Strategies to Drive Healthy Living through all Life Stages

▪ Discussion Panel Investment Trends in Consumer Health

THURSDAY SEPT. 4 FRIDAY SEPT. 5

with connected health technologies - parks associates€¦ · - positional/movement sensors...

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