Daily Essential Activities
Health and Safety Awareness
Care Coordination
Transition Support
Social Well-being
Caregiver Quality of Life
JANUARY 2016
CAREG IVING
INNOVATION
FRONTIERS
A universal need, a growing opportunity—
leveraging technology to transform the future
CAN 40 MILLION CAREGIVERS
COUNT ON YOU?
W
here can I find reliable help with meals and medications? What does this
bill mean, and will my insurance cover it? And how can I help Mom and
Dad stay safe and healthy?
As people live longer lives, questions like these touch us all. According
to the 2015 report “Caregiving in the U.S.,” an AARP and National Alliance
for Caregiving study, nearly 40 million Americans in 2014 were providing
unpaid care to people who are older, disabled, or otherwise in need of
assistance. A quarter were millennials, and half were under the age of 50.
Some call it “informal” care, but there’s nothing informal about the
emotional, financial, and day-to-day stress such a role can involve, or the
growing gap between the number of caregivers and the number of care
recipients. By 2020, 117 million Americans are expected to need assistance
of some kind, yet the overall number of unpaid caregivers is only expected
to reach 45 million.
A TECHNOLOGY TIPPING POINT
As online networks bring people together,
platform-based solutions extend business
reach, and mobile devices put information,
connections, and services at people’s
fingertips, there’s never been a better time
“
2
to harness innovation toward easing an
important job and making a social impact.
Companies from established multinationals
to startups, mass-market firms to niche
players, are recognizing a caregiving market
opportunity that’s expected to reach $72
billion in 2020 alone. The cumulative total
I am her power of attorney, medical
representative, and trustee of her living
trust. I take her to medical appointments,
manage her finances, make sure she has
everything she needs, and visit as often as
I can. It’s been really hard.”
for 2016-2020 is expected to be $279 billion,
with $60 billion of this being caregiver outof-pocket spending.
Technology holds great promise for
helping to reduce the complexities, stress,
and sheer hard work of this important
job. Yet many current solutions remain
under the radar and underused. Take
health and safety monitoring devices, for
instance: A recent survey conducted for
AARP demonstrated that while 67 percent
of caregivers say they want to use these
solutions, only one tenth are currently
doing so.
Despite billions in spending, today’s market
for caregiving solutions remains extremely
fragmented, poorly adapted to caregiver
needs, and, in some cases, undefined and
underdeveloped. Many solutions also are
directed toward recipients of care, not the
caregivers themselves.
CALL FOR ACTION:
WE NEED TECHNOLOGY
MORE THAN EVER TO
BRIDGE THE GAP
RELIEF FROM A CAREGIVER’S
PERSPECTIVE
Addressing caregivers’ needs is a strategic focus
of AARP. With the Caregiving Innovation
Frontiers research project, AARP and Park
Associates aim to:
· Guide entrepreneurs, investors, and
businesses to clearly defined market segments
· Highlight the needs, wants, and challenges
of unpaid caregivers, from the caregivers’
perspective
· Call out examples of solutions already
operating in these areas, including pitfalls,
pain points, and lessons learned
· Identify gaps between existing solutions and
those that are still needed
· Highlight opportunities for joining the
caregiving marketplace, including unique
technologies and solutions, disruptive
business models, and areas with the potential
for high growth
FORECAST:
45M
UNPAID
CAREGIVERS
117M
Americans are expected
to need assistance
of some kind by 2020
5M
PAID
CAREGIVERS
Caregiving Innovation Frontiers | 3
SIX AREAS OF OPPORTUNITY
T
o define the main market segments, AARP and Park Associates started
with AARP’s own data—including survey data detailing consumer needs,
interests, and behaviors—and an examination of services already in the
marketplace. Assumptions were checked against existing industry research.
4
HEALTH AND SAFETY
AWARENESS PAGE 18
CARE
COORDINATION
Health vital alerts, diet and nutrition,
medication management, personal
safety monitoring, telehealth
Care planning, care professional
engagement, records and benefits
management, recovery support
PAGE 26
NCE
LEGAL
A
INSUR
HOS
PIC
E
DAILY ESSENTIAL
ACTIVITIES PAGE 10
TRANSITION
SUPPORT PAGE 34
Meals, home and personal
care, home repair, delivery,
transportation services
Home retrofit services, long-term care
insurance planning, long-term care
provider referral, legal assistance,
hospice/funeral planning
CAREGIVER QUALITY
OF LIFE PAGE 50
SOCIAL
WELL-BEING
Respite and backup care, social
support, health and wellness,
financial/job security
Digital inclusion, life enrichment and
empowerment, community networking, life companions
PAGE 42
A
GET
RIDE
CUT-R
AT
DEALS E
RETEN
TI
RATES ON
LEGAL
CAPE
LAND
Caregiving Innovation Frontiers
| S
5
TODAY & TOMORROW
OVERARCHING TRENDS
otal market revenues include out-of-pocket spending by
caregivers and care recipients, reimbursements by payers
(Medicare, Medicaid, private insurance, long-term care
insurance), payment by social services, and payment by other third
parties such as advertisers, care facilities, and employers.
A BIG MARKET FOR
EVERYDAY RELIEF
T
$72.2B
4.3
1.3
CAREGIVING MARKET OPPORTUNITY
EXPECTED TO REACH $72B BY 2020—
80% WILL BE OUT-OF-POCKET BY
CAREGIVERS AND CARE RECIPIENTS.
5
2.1
5.7
53.7
2.7
$42.9B
.64
3.5
1.3
Caregiver Quality of Life
Social Well-being
2.8
32
Transition Support
Care Coordination
Health & Safety Awareness
Daily Essential Activities
6
2016
2020
Daily Essential Activities
represents the largest
commercial business
opportunity. Caregiver
Quality of Life also is a
strong market but smaller
due to caregivers’ tendency to
neglect their own needs.
BENEFITS BEYOND
REVENUES
The social impact of
caregiving is important to
consider as well. Social Wellbeing, Transition Support,
and Care Coordination are
traditionally underinvested
segments; however, they offer
entrants the opportunity
to alleviate the significant
stress associated with many
caregiving functions. Online
caregiver communities, for
example, not only provide
practical tools in areas
like care coordination and
planning, but also offer
a venue for caregivers to
support each other and
improve well-being for
both themselves and care
recipients. Companies who
deliver such quality-of-life
enhancing functions can
enhance their customer
satisfaction and loyalty,
brand power, and social
influence.
FIRST-MOVER
ADVANTAGE
In many areas, caregiving
gives companies the
opportunity to get in on the
ground floor of an emerging
market. Sub-markets with
the most dramatic potential
to go from small to big
include services for planning
and coordinating care tasks,
services for engaging care
professionals, health vital
alerts, records and benefits
management, and social
support for caregivers.
DISRUPTION-FUELED
GROWTH
The overall caregiving
market is forecast to grow
at an average rate of 13%
from 2016 to 2020. Because
of technology’s ability to
disrupt incumbent business
models—for instance,
platform-based solutions that
maximize reach, agility, and
sustainability—even faster
growth is expected in several
market sub-segments. These
include home delivery, safety
monitoring, telehealth, digital
inclusion, and life enrichment
and empowerment.
And it’s not only startups
doing the disruption. A major
online retailer is consolidating
solutions for daily tasks
through its ecommerce
portal, to make everyday
coordination easier for
caregivers. A leading security
company is working with
partners and developers on a
Caregiving Innovation Frontiers | 7
platform and hub for sensors
that deliver health and safety
awareness solutions.
A RANGE
OF BUSINESS MODELS
Caregivers influence the
purchase of all of the
offerings highlighted in this
report and are responsible
for the direct purchase of
many, such as medication
management apps and
services like proxy care and
legal assistance.
Entrants to this space
should look beyond
these traditional revenue
models. Often a solution
is free to caregivers and
care recipients and paid
for by either a member of
the health system (e.g., an
online clearinghouse of
long-term referral options)
or an employer (e.g.,
assistance with financial
planning). For solutions
delivered by the medical
system, entrepreneurs
and investors will need
to keep an eye on what
insurance companies or the
government will reimburse
and get up to speed on
reimbursement coding and
paperwork.
For social inclusion
offerings like online
communities or photosharing platforms,
revenues often come from
advertising, memberships,
or sponsorships—a business
model that also alleviates the
financial stress of caregiving
by reducing out-of-pocket
spending. Neither caregivers
nor care recipients are
used to paying directly for
these services. However, as
solutions with premium and
tiered pricing models in this
report demonstrate, they can
be enticed to pay—if they
believe the experience will be
unique and compelling.
care support with daily
tasks plus care coordination
and scheduling care
appointments plus managing
medical records.
Furthermore, many current
offerings are limited to a
specific state or region or
focus narrowly on only one
or two specific needs. Serving
a broad geographic area or
exploring synergies within
and across market segments
to address multiple pain
points also can be a way to
stand out. As innovation
proliferates, companies
will join forces to expand
their reach and services
through partnerships among
entrepreneurs and incumbents
and win-win acquisitions.
and more lies ahead in this
essential, exciting, and
universal market.
With a $279 billion
cumulative market
opportunity between
2016 and 2020, a
WHAT LIES AHEAD?
dynamic marketplace
Revenues from multiple
up for disruption, and a
sources, regulations shaping responsibility as a society
areas like telehealth,
to make life easier for those
players entering the space
who deliver unpaid care,
and growing through
caregiving is a frontier
mergers, acquisitions, and
technology entrepreneurs
horizontal and vertical
and investors can’t afford
partnerships—all of this
to ignore.
REVENUE GROWTH AND REVENUE MODEL CONTRIBUTION
HOW TO WIN
E
ven the most cutting-edge
innovation is meaningless
if it simply sits on the shelf.
Although care recipients
have adopted some popular
technologies—for instance,
Facebook and FaceTime
for keeping up with family
members—they often find
new innovations to be
unfamiliar or difficult to
operate. New entrants in
the caregiving space can
distinguish themselves by
8
making their services easy
to understand, intuitive,
convenient to use, and
affordable. Financing
a solution through an
alternative source of
revenue, such as Medicare
or insurance reimbursement
or fees from advertisers
or sponsors, can lessen
caregiver out-of-pocket
spending and financial stress.
New entrants also can
take a cue from a leading
online home renovation
platform by delivering an
enlightened user experience
via a “3C” strategy
(content, community, and
commerce). An emergence
of multifaceted solutions
is not surprising given the
multifaceted nature of many
aspects of caregiving. Take
aging in place, for instance,
which often requires home
retrofitting, health and
safety alerts, and help with
essential daily tasks.
This report highlights a
few companies that serve
multiple needs, such as home
2016
$42.9 billion
57.5%
Care recipient
out-of-pocket
spending
22.7%
Caregiver
out-of-pocket
spending
5.0%
B2B revenues
14.8%
Reimbursement
2020
$72.2 billion
61.3%
Care recipient
out-of-pocket
spending
20.3%
Caregiver
out-of-pocket
spending
5.5%
B2B revenues
12.9%
Reimbursement
Caregiving Innovation Frontiers | 9
1/6
DAILY ESSENTIAL
ACTIVITIES
CHORES
F
PERSONAL
CARE
MEALS
rom cooking meals to combing hair, making household repairs to
managing transportation arrangements, the to-do list seems endless
for many unpaid caregivers. Crunched by these tasks and other
responsibilities at work and home, these caregivers increasingly seek
commercial services to make daily life easier.
America’s aging population is driving demand for these services. Yet
incomplete information and a lack of standards can make it difficult for
caregivers to connect with qualified, affordable solutions. Middlemen like
agencies and referral providers have emerged to streamline the search;
however, their fees increase (and sometimes inflate) average costs.
HOME
REPAIRS
NCE
LEGAL
A
INSUR
HOS
PIC
E
LEGAL
NCE
A
INSUR
HOS
PIC
E
MARKET REVENUE FORECASTS 2016–2020
Total market revenue includes out-of-pocket spending from both care recipients and caregivers,
as well as reimbursements from private and public insurers and business-to-business spending.
CAREGIVER OUT-OF-POCKET SPENDING
TOTAL CAREGIVER SUPPORT MARKET
$207.6B
$36.5B
“
10
CUT-R
AT
DEALS E
RET•EN Yet the most
• The biggest
TION
A growth/disruptionRATES sizable market
T
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G
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subscriptions,
and memberships
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LEGA
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evaluate,
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care recipients
generally pay,
mostly out of
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reimbursement.
LS
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ATE
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(home care)
is in online home
delivery, including
Linvolves
EGAL
LANDS traditional,
onsite
niches like
CAPE
assistance.
customized meals
for diabetics.
DELIVERIES
I’ve learned to be a nurse, counselor, cook, chauffeur,
banker, and so much more.”
TIONS
REGULA
2-3% 2-3%
TIONS
REGULA
Caregiving Innovation Frontiers | 11
DAILY ESSENTIAL ACTIVITIES
E
RANC
INSU
LEGAL
HOS
ANCE
MEALS, HOME & PERSONAL CARE, HOME REPAIR, DELIVERY, TRANSPORTATION SERVICES
LEGAL
INSUR
PIC
E
HOS
PIC
E
RANC
E
LEGAL
INSU
SOLUTION
CUT-R
CUT-R
ATE
ATE (dressing,
Home
aides, social workers, aide-to-hire
DEALScare
DEALSapps
RETbathing,
combing, feeding and personal
digital recipes,
ENTIO
RETEhygiene),
NTION
N
RATES
RATEpreparation),
home cooking
home
ET Ainstruction videos (meal
S
ANCE
INSUR
5.6%
LEGAL
TIONS
REGULA
TOTAL
MARKET
CAPE
EXAMPLES IN THE MARKET
LEGAL
HOS
PIC
PIC
E
2-3% 2-3%
TIONS
REGULA
DID YOU KNOW?
from 2012 to 2022.
–Paraprofessional Healthcare Institute (PHI)
CUT-R
AT
DEALS E
RETEN
TI
RATES ON
E
$4.5–$6.5B
THIS
INCLUDES
CUT
CUT-R
ATE
D
EALS
Plumbing, appliance repair/installation, electrical,
RETEN
RETEN
N
TION
andTIO
remodeling
services
RATE
RATES
S
A
T
E
G
-RAT
DEALS E
A
GET
RIDE
9.8%
DIRECT
CAREGIVER
SPENDING
9.8%
TIONS
REGULA
TOTAL
MARKET
painting
RIDE
LE
LANDS GAL
CAPE
EXAMPLES IN THE MARKET
ET A
1 million jobs
A
GET
RIDE
CAGR
LANDS
CAPE
The home care industry
is expected to add
12
ANCE
TOTAL MARKET OPPORTUNITY
INSUR
chore service providers, and home maid hiring apps (cleaning,
LEGAL
LEGAL
laundry and gardening)
LANvacuuming,
DS
HOS
E
SOLUTION
$897M–$1.3B
G
RIDE
DIRECT
CAREGIVER
SPENDING
PIC
DIRECT CAREGIVER PORTION
$20.4–$25.5B
THIS INCLUDES
5.5%
HOS
HOME REPAIR
TOTAL MARKET OPPORTUNITY
$3.9–$4.9B
A
GET
RIDE
E
OPPORTUNITY 2016-2020
DIRECT CAREGIVER PORTION
CAGR
LEGAL
ANCE
INSUR
PIC
MEALS, HOME, AND PERSONAL CARE
OPPORTUNITY 2016-2020
HOS
G
RIDE KNOW?
DID YOU
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LANDS GAL
CAPE
CUT-R
AT
DEALS E
RETEN
TION
RATES
2-3% 2-3%
90%
NS
TIO
REGULA
LE
LANDS GAL
CAPE
of seniors today
plan to stay in
their homes.
–“Aging in Place: A State Survey of Livability Policies
and Practices,” AARP 2011
TIONS
REGULA
2-3%
Caregiving Innovation Frontiers | 13
DAILY ESSENTIAL ACTIVITIES
E
RANC
LEGAL
INSU
HOS
ANCE
MEALS, HOME & PERSONAL CARE, HOME REPAIR, DELIVERY, TRANSPORTATION SERVICES
LEGAL
INSUR
PIC
E
HOS
PIC
E
RANC
E
INSU
SOLUTION
HOME DELIVERY
CUT-R
ATE
DEALS
D
LS as
Delivery services for essential home itemsEAsuch
RETE
RETEN
NTION
TION
supplies,A meals, and general Rmerchandise
RATEhome
S
ATES
T
E
G
ATE
42%
TIONS
REGULA
TOTAL
MARKET
E
HOS
PIC
E
SOLUTION
CAGR
EXAMPLES IN THE MARKET
LE
LANDS GAL
CAPE
2-3% 2-3%
TIONS
REGULA
DID YOU KNOW?
Home delivery service
has the second largest
market revenue potential
in this market category.
$2.1–$2.6B
THIS INCLUDES
CUT-R
ATE
DEALS and ride-sharing apps
E-hailing
groceries,
RIDE
LE
LANDS GAL
CAPE
TOTAL MARKET OPPORTUNITY
$640–$647M
$4.9–$19.1B
THIS
CUT-RINCLUDES
DIRECT
CAREGIVER
SPENDING
PIC
DIRECT CAREGIVER PORTION
TOTAL MARKET OPPORTUNITY
$641M–$1.9B
32.8%
LEGAL
ANCE
INSUR
OPPORTUNITY 2016-2020
DIRECT CAREGIVER PORTION
A
GET
RIDE
HOS
TRANSPORTATION SERVICES
OPPORTUNITY 2016-2020
CAGR
LEGAL
A
GET
RIDE
1.1%
DIRECT
CAREGIVER
SPENDING
4.8%
TIONS
REGULA
TOTAL
MARKET
RETEN
TIO
CE
URAN N
RIN
ATSE
S
LEGAL
A
GET
RIDE
HOS
PIC
E
EXAMPLES IN THE MARKET
LE
LANDS GAL
CAPE
CUT-R
AT
DEALS E
RETEN
TION
RATES
LE
LANDS GAL
CAPE
2-3% 2-3%
DID YOU KNOW?
TIONS
REGULA
CUT-R
A
GET
RIDE
AT
Apps and other online
DEALS E
RETENare
business models
TION
RATES
transforming this market.
LE
LANDS GAL
CAPE
Caregiving Innovation Frontiers | 15
14
TIONS
REGULA
DAILY ESSENTIAL ACTIVITIES
MEALS, HOME & PERSONAL CARE, HOME REPAIR, DELIVERY, TRANSPORTATION SERVICES
FINDING OPPORTUNITY IN FORGING CONNECTIONS
Catalyzed by a growing
number of Americans in need
of care and an increasing
desire by these individuals to
live independently at home,
the home care industry is
expected to add 1 million
jobs from 2012 to 2022.
Stronger labor protections
are enticing many of these
professionals to strike out on
their own as independents.
In this environment,
established players and
emerging startups are
connecting home care
professionals with the
parties who seek them,
saving caregivers time
and ensuring quality and
customer satisfaction. In July
2015, startup Hometeam
entered the marketplace
in New York, New Jersey,
and Pennsylvania. This
service connects unpaid
caregivers with
teams that
LEGAL
E
HOS
C
N
A
consist
of a care advisor,
PIC
SUR
IN
E
a care coordinator, and a
registered nurse. Care teams
and caregivers use an iPad
to share texts, pictures, and
medical updates.
March 2015 marked the
launch of Amazon Home
Services, Amazon’s expansion
into professional services.
The service enables caregivers
to browse, purchase, and
schedule hundreds of services
for the home, like cleaning,
installations, and repairs,
directly on Amazon.com.
These pre-packaged services
are backed by customer
reviews, background checks,
and a “happiness guarantee,”
and pricing is transparently
presented upfront, with
Amazon taking a 5 percent to
15 percent cut.
CUSTOMER LOYALTY AND SMART CONTRACTING MATTER
While it is too early to gauge the success of Hometeam and Amazon Home Services, a
now-defunct provider of home care services, Homejoy, offers lessons for new entrants
in the home care space:
· Be wary of “acquisition by
price.” Cut-rate deals to get
customers in the door can
erode profitability.
· Keep customers coming
back. This market demands
retention rates of at least
35 percent; Homejoy’s
were only 10 percent to 15
percent.
· Keep up with the shifting
and complex legal
landscape. Homejoy also
was damaged by lawsuits
T A the company
allegingGEthat
RIDE
forced contractors to work
in a manner more similar
to an employer-employee
relationship.
CUT-R
AT
DEALS E
RETEN
TI
RATES ON
LE
LANDS GAL
CAPE
MARKET TRENDS
· A gradual shift to home care will result in more professional
caregivers working outside of health institutions.
· Department of Labor starts to implement and enforce the
Fair Pay rules for home care workers.
· Internet/mobile technology is changing the way home care
professionals and home service providers are recruited.
WHO WILL WIN?
Battle for
business model
HOME CARE WILL ADD ONE MILLION JOBS
Highest growth occupations, 2012-2022
HOME CARE
WORKERS
RETAIL SALES
REGISTERED
NURSES
TEACHERS
LAW
ENFORCEMENT
0
16
Battle for
customer
Battle
for labor
250,000
500,000
750,000
1,000,000
Caregiving Innovation Frontiers | 17
HEALTH & SAFETY
AWARENESS
SAFETY
NUTRITION
A
s a growing number of care recipients experience chronic health
conditions like COPD and diabetes, out of sight is not out of mind for
caregivers charged with maintaining their health and safety.
As smartphone and tablet ownership increases, big data promises to deliver
big peace of mind. Hundreds of devices and services are emerging to track
diet and nutrition, medication adherence, and health symptoms that warrant
attention. Other offerings promise alerts to abrupt body movements (like a
fall), imminent hazards (like a fire), or connections to a doctor anywhere,
anytime. In fact, payers have improved reimbursement policies to include
telehealth services as part of the overall portfolio to encourage their adoption.
Yet large gaps remain between such a vision and reality. In the current
market, some offerings are prohibitively expensive; others are hindered by
old technology, lack of geographic range, or regulatory limitations. Often
a device or service will track only one thing, like fire or a break-in. Some
devices are complex to install, and others deliver sub-par performance.
2/6
ANCE
LEGAL
INSUR
ANCE
LEGAL
INSUR
PIC
E
HOS
PIC
E
MARKET REVENUE FORECASTS 2016–2020
Total market revenue includes out-of-pocket spending from both care recipients and caregivers,
as well as reimbursements from private and public insurers and business-to-business spending.
CAREGIVER OUT-OF-POCKET SPENDING
TOTAL CAREGIVER SUPPORT MARKET
$20.3B
CUT-R
KEY TAKEAWAYS
ATE
DEA
• Third parties are stepping
in to fund services—for
example, UnitedHealthcare
and Cigna in telehealth
and advertisers and
care facilities in diet and
nutrition.
• Some sub-segments (health
vital alerts) are maturing
more quickly than others
(diet and nutrition).
“
18
TELEHEALTH
It was always a challenge to stay ahead of someone with
dementia because, just as I thought I had things figured out,
Granny would be one step ahead of me with something else.”
TIONS
REGULA
RE•TENPartnerships (ADT and Ideal
TION
RATES
A
GET activities
Life) and m&a
•
RIDE
CUT-R
AT
DEALS E
RChronic
ETENT conditions and
ION
RATES
preventative care are
opening up niche markets,
suchLEas diabetes—targeted
LANDS GAL
appsCand
APE messaging tools.
(the Nortek acquisition of
Numera)
are being seen in
LE
LANDS GAL
CAPE security.
home
• Except in medication
A
GET
management,
caregivers
RIDE
are more likely to influence,
rather than make,
purchases.
MEDICATION
MANAGEMENT
LS
$4.3B
• Stand out through ease of
use, speed of service, and
range of offerings.
ALERTS
MOBILITY
HOS
2-3% 2-3%
TIONS
REGULA
Caregiving Innovation Frontiers | 19
HEALTH & SAFETY AWARENESS
E
RANC
INSU
LEGAL
HOS
HEALTH ALERTS, NUTRITION, MEDICATION MANAGEMENT, PERSONAL SAFETY MONITORING, TELEHEALTH
LEGAL
ANCE
INSUR
PIC
E
HOS
PIC
E
RANC
E
INSU
SOLUTION
TOTAL MARKET OPPORTUNITY
$183–$300M
PIC
13.6%
TOTAL
MARKET
20
HOS
PIC
E
CUT-R
T-RAT
ATE
DEALS E
DEAblood
Connected
home medical devices to report
pressure,
LS
RETEN
TION SpO2, temperature, weightRETENTIO
glucose,
RATES
N
RATES
ET A
CAGR
G
RIDE
EXAMPLES IN THE MARKET
LE
LANDS GAL
CAPE
Simplicity and usability
are key forTsuccess.
IONS
LE
LANDS GAL
CAPE
2-3% 2-3%
REGULA
TOTAL MARKET OPPORTUNITY
$3.8–$11.2M
$60.4–$109.6M
THIS
INCLUDES
C
UT-RA
TE
A
GET
RIDE
32.2%
DIRECT
CAREGIVER
SPENDING
DID YOU KNOW?
TIONS
REGULA
E
DIRECT CAREGIVER PORTION
$1.0–$1.6B
THIS
INCLUDES
CU
DIRECT
CAREGIVER
SPENDING
LEGAL
OPPORTUNITY 2016-2020
DIRECT CAREGIVER PORTION
13.7%
ANCE
INSUR
DIET AND NUTRITION
OPPORTUNITY 2016-2020
A
GET
RIDE
HOS
SOLUTION
HEALTH VITAL ALERTS
CAGR
LEGAL
CUT-R
AT
E
DEALor
DEALS
Apps
information
S messaging tools to check ingredient
RETEN
RETEheadache,
TION to symptoms such as dizziness,
fatigue
NTION
RAT or alert
ES
RATES
A
GET
RIDE
EXAMPLES IN THE MARKET
LE
LANDS GAL
CAPE
LE
LANDS GAL
CAPE
DID YOU KNOW?
16.4%
TIONS
REGULA
TOTAL
MARKET
2-3% 2-3%
TIME FOR
TIONS
INSULIN
REGULA
Specialized apps and
messaging tools—for diabetics,
for instance—represent a
niche-market opportunity.
Caregiving Innovation Frontiers | 21
HEALTH & SAFETY AWARENESS
E
RANC
INSU
LEGAL
HOS
ANCE
LEGAL
INSUR
PIC
SOLUTION
HEALTH ALERTS, NUTRITION, MEDICATION MANAGEMENT, PERSONAL SAFETY MONITORING, TELEHEALTH
E
HOS
PIC
E
RANC
E
INSU
TOTAL MARKET OPPORTUNITY
$108–$188M
14.8%
TIONS
REGULA
TOTAL
MARKET
RAT
DEALS E
Reminder
apps, monitored
RETEN
TION
medication
timing
RATEmanage
S
ET A
G
RIDE
CUT-R
AT
DEALS E apps to
pill boxes or pharmacy
RETEN
TION
and dosages,
refill records
RATESadherence,
LE
LANDS GAL
CAPE
EXAMPLES IN THE MARKET
LE
LANDS GAL
CAPE
E
HOS
PIC
E
2-3% 2-3%
S
DID YOU KNOW?
30% take
five or more.
TOTAL MARKET OPPORTUNITY
$304–$684M
CAGR
$1.5–$2.9B
THIS
CUT-RINCLUDES
DE
CUT-R
ATE
ATE
ALS
DEALS
Devices
for hazard prevention and emergency
response
A
GET
RIDE
21.5%
DIRECT
CAREGIVER
SPENDING
TION
REGULA
Nearly 90% of people
over 60 take at least one
prescription drug.
22
PIC
DIRECT CAREGIVER PORTION
$108–$188M
THIS
CUT- INCLUDES
DIRECT
CAREGIVER
SPENDING
LEGAL
OPPORTUNITY 2016-2020
DIRECT CAREGIVER PORTION
14.8%
ANCE
INSUR
PERSONAL SAFETY MONITORING
OPPORTUNITY 2016-2020
A
GET
RIDE
HOS
SOLUTION
MEDICATION MANAGEMENT
CAGR
LEGAL
16.9%
TIONS
REGULA
TOTAL
MARKET
RETEN
TION
RATES
A
GET
RIDE
RETEN
TION
RATES
EXAMPLES IN THE MARKET
LE
LANDS GAL
CAPE
LE
LANDS GAL
CAPE
2-3% 2-3%
DID YOU KNOW?
NS
TIO
REGULA
67% of caregivers want to use
technology to monitor their care
recipient’s health and safety—but only
one tenth are currently doing so.
Caregiving Innovation Frontiers | 23
HEALTH & SAFETY AWARENESS
LEGAL
E
RANC
INSU
HOS
ANCE
HEALTH ALERTS, NUTRITION, MEDICATION MANAGEMENT, PERSONAL SAFETY MONITORING, TELEHEALTH
LEGAL
INSUR
PIC
E
LEGAL
E
HOS
ANC
INSUR
HOS
PIC
E
PIC
E
SOLUTION
TIMING MATTERS
TELEHEALTH
When innovations involve
both technology and health,
entrepreneurs and investors
must keep a particularly
sharp eye on evolving policy.
OPPORTUNITY 2016-2020
DIRECT CAREGIVER PORTION
TOTAL MARKET OPPORTUNITY
$5–$28M
CAGR
$124–$878M
THIS INCLUDES
CUT-R
CUT-R
ATE
57.7%
A
GET
RIDE
DIRECT
CAREGIVER
SPENDING
68.8%
TIONS
REGULA
TOTAL
MARKET
A
T
DEALS “house call” apps to connect patients
DEALSandE doctors
Online
RETEN
ETENT
TION
follow-ups, videoRconsultations
ION
RA for post-discharge
TES
LE
LANDS GAL
CAPE
EXAMPLES IN THE MARKET
A
GET
DLEEGAL
I
R
LA
PE
CUT-R
AT
DEALS E
RETEN
TI
RATES ON
LE
LANDS GAL
CAPE
2-3% 2-3%
DID YOU KNOW?
interest are other areas to
watch. In the marketplace
for health and safety alerts,
readiness and maturity will
vary across sub-segments.
CAREGIVER CONCERNS ABOUT IN-HOME ACCIDENTS
AND HEALTH-RELATED ISSUES ARE CONSISTENTLY HIGH
NDSCA
OVER
60%
OVER
55%
OVER
OVER
40%
35%
falling and
being unable
to get up
hurting themselves
while carrying out
daily routines
eating food
contrary to a
prescribed diet
lapses of
checking their
health vitals
PLAYERS AND PAIN POINTS VARY WIDELY
TIONS
REGULA
Regulations and
reimbursement models
will play a big role in
determining telehealth’s
adoption and growth.
24
RATES
A
GET
RIDE
In telehealth, for instance,
regulations on the types of
visits payers will reimburse
may stymie growth.
Consumer awareness and
TIONS
REGULA
Companies in the health and
safety monitoring space range
from new apps and Internet
of Things devices to oldschool security systems.
Launched with a Kickstarter
in early 2015, Droplet is
a plastic device that can
be attached to a pillbox,
a medicine cabinet, or
handbag. Via a customizable
app, it delivers medication
reminders that users press a
button to acknowledge.
Heal gives patients onehour-or-less access to prevetted doctors. So far it has
more than 200 physicians
recruited across Los Angeles,
Orange County, and San
Francisco and a 30 percent
patient reuse rate.
2-3%
ADT Health, a division
of the nation’s largest
home security monitoring
company, delivers an
integrated multi-service
solution for remote
care, with emergency
detection and response,
fall prevention, location
tracking, and remote health
monitoring.
Caregiving Innovation Frontiers | 25
CARE
COORDINATION
NING
TO DO
TO D
O
CARE ING
PLANN
RECOR
BENEF DS &
ITS
RDS
O
C
E
R
EFITS
N
E
B
&
CARE
PLAN
W
ho is the best doctor for COPD? Where is the nearest ER with the
shortest wait time? What do I need to do after Dad gets home from
the hospital—and will his insurance cover this care?
As care needs arise and shift, caregivers are required to navigate the
complex universe of health care providers and payers known as the
medical system. A growing number of caregivers are using planning
and coordination tools to do so. Some of these tools, like solutions for
discharge planning and records and benefits management, are offered
through entities in the health system as a way to meet mandates or stand
out in an increasingly competitive marketplace.
Yet much work remains for easing the care coordination journey for
caregivers. The medical “system” often is a siloed hodgepodge of disparate
organizations with different legacy IT systems and incomplete coordination
across them. Meanwhile, some services, like those related to recovery support,
may have rising out-of-pocket costs as the reimbursement climate shifts.
This makes things even more difficult for caregivers already struggling to
find trusted information, make decisions, and keep everything coordinated
quickly and at low or no cost.
3/6
ANCE
LEGAL
INSUR
HOS
ANCE
LEGAL
INSUR
PIC
E
HOS
PIC
E
MARKET REVENUE FORECASTS 2016–2020
Total market revenue includes out-of-pocket spending from both care recipients and caregivers,
as well as reimbursements from private and public insurers and business-to-business spending.
FAMILY
CAREGIVER OUT-OF-POCKET SPENDING
TOTAL CAREGIVER SUPPORT MARKET
$8.4B
$737M
“
26
All of our lives immediately changed upon her release
from rehab in October 2011. She required a caregiver 24/7
because she could no longer care for herself, and she was
confined to a wheelchair.”
TIONS
REGULA
CUT-R
AT
DEALS E
RETEN • Providers are
TION
R
acquiring promising
to ATES
Cost shifting
from provider
startups to gain
patient is leading to
tiered pricing and LEGALexpertise.
caregiver-fundedLANDSCAPE
premium services.
RETEincreased
•
• Expect
NTION
R
A
ATESin care
interest
GET
IDE
coordination overallR
by established
LE
LANDS GAL
players,
from
CAPE
providers to
drug and device
manufacturers to
pharmacies.
• Healthcare
A
competition
is
GET
RIDE
driving enterprise
spending for record
management,
care professional
engagement, and
recovery support
reimbursement.
LS
VERY
R E C OP O R T
P
UO
RS
EC
VE
S U P P OR Y
RT
CUT-R
KEY TAKEAWAYS
ATE
DEA
CARE
AL
S S I O NN T
E
F
O
R
P OF AGEM
C AE
N GE S S I O N R E
E
EN
A
GAGE
MENL
T
TIONS
REGULA
Caregiving Innovation Frontiers | 27
E
ANC
INSUR
CARE COORDINATION
LEGAL
E
RANC
HOS
INSU
LEGAL
ANCE
INSUR
PIC
E
HOS
LEGAL
PIC
E
RANC
E
LEGAL
HOS
INSU
ANCE
LEGAL
INSUR
PIC
E
HOS
PIC
E
SOLUTION
SOLUTION
CARE PLANNING
CARE PROFESSIONAL ENGAGEMENT
OPPORTUNITY 2016-2020
OPPORTUNITY 2016-2020
DIRECT CAREGIVER PORTION
CE
URAN
LEGAL
HOS
PIC
INS
A
GET
RIDE
43.1%
DIRECT
CAREGIVER
SPENDING
43.1%
TIONS
REGULA
TOTAL
MARKET
ET A
G
RIDE
E
TE
creating, reminding,
RETPlanning,
ENTIO
N care tasks
RATE
updating
S
TA
GE
RIDE
CUT-R
AT
DEALS E
coordinating,
RETEN
TION
RATES
LE
LANDS GAL
CAPE
EXAMPLES IN THE MARKET
A
GET
D
I
R E
CAGR
RETEN
TION
R
ATES KNOW?
DID YOU
LE AL
Caregivers
to spend out
LANDS Gtend
CAPE
of pocket for these services.
17.2%
TIONS
REGULA
TOTAL
MARKET
CUT-R
ATE
DEALS
Reviewing,
scheduling, communicating with
DEAdoctors
LS
RETEN
RETEN
andTIO
hospitals
N
TION
R
LE
ATE
LANDS GAL S
CAPE
DIRECT
CAREGIVER
SPENDING
TIONS
REGULA
$432–$808M
T-RATE
0%
LE
LANDS GAL
CAPE
2-3% 2-3%
LS
CUT-R
AT
DEALS E
RETEN
TI
RATES ON THIS INCLUDES
CU
A
GET
RIDE
CU
T-RNASTE
TIO
LA
UE
REGD
A
TOTAL MARKET OPPORTUNITY
None
$34–$137M
THIS
CUT-RINCLUDES
A
DEALS
DIRECT CAREGIVER PORTION
TOTAL MARKET OPPORTUNITY
$34–$137M
CAGR
HOS
PIC
CARE
PLANNING,
CARE PROFESSIONAL ENGAGEMENT, RECORDS & BENEFITS, RECOVERY SUPPORT
E
A
GET
RIDE
LE
LANDS GAL
CAPE
EXAMPLES IN THE MARKET
RATES
LE
LANDS GAL
CAPE
2-3% 2-3%
2-3%
DID YOU KNOW?
NS
TIO
REGULA
Few consumers with a chronic condition reported
receiving support from a care coordinator.
28
TIONS
REGULA
Caregiving Innovation Frontiers | 29
HOS
PIC
E
CARE COORDINATION
E
RANC
LEGAL
INSU
HOS
CARE PLANNING, CARE PROFESSIONAL ENGAGEMENT, RECORDS & BENEFITS, RECOVERY SUPPORT
ANCE
LEGAL
HOS
INSUR
PIC
E
PIC
E
INSU
HOS
ANCE
LEGAL
INSUR
PIC
E
SOLUTION
RECORDS AND BENEFITS MANAGEMENT
RECOVERY SUPPORT
DEALS
ANCE
E
DIRECT
CAREGIVER PORTION
RETE
None
LE
LANDS GAL
CAPE
A
GET
RIDE
0%
DIRECT
CAREGIVER
SPENDING
HOS
E
27.4%
TIONS
REGULA
TOTAL
MARKET
CAGR
CUT-R
CUT-R
AT
ATE
DEALS Ebenefits, filing claims, paying medical
DEALS bills,
Verifying
resolving
RETEN
R
E
T
T
ION
ENhealth
storing and managing personal
TION records
RATEdisputes,
RATES
S
ET A
A
GET
RIDE
3.5%
LE
LANDS GAL
CAPE
2-3%
2-3%
TIONS
REGULA
DID YOU KNOW?
TIONS
REGULA
Health systems are offering this service as a
way to stand out in a competitive market.
CUT-R
AT
DEALS E
RETEN
TI
RATES ON
LE
LANDS GAL
CAPE
2-3%
$676–$888M
THIS
CUT-R INCLUDES
CUT-R
ATE
D
EALS referrals and
Managing care transition process, coordinating
RETEN
RETEN
TION
TION supplies, hiring
securing medical equipment
RATESmedications,
RATES and
A
T
E
G
DEALS
G
RIDE
EXAMPLES IN THE MARKET
TOTAL MARKET OPPORTUNITY
$62-$72M
THIS INCLUDES
A
GET
RIDE
S
DIRECT CAREGIVER PORTION
$120–$314M
LE
LANDS GAL
CAPE
E
OPPORTUNITY 2016-2020
PIC
TOTAL MARKET OPPORTUNITY
NTI
RATES ON
CAGR
LEGAL
INSUR
HOS
PIC
SOLUTION
CUT-R
OPPORTUNITY 2016-2020
AT
30
LEGAL
E
RANC
DIRECT
CAREGIVER
SPENDING
6.7%
TIONS
REGULA
TOTAL
MARKET
2-3%
ATE
and managing
RIDE home health nurses and therapists
LE
LANDS GAL
CAPE
EXAMPLES IN THE MARKET
LE
LANDS GAL
CAPE
2-3% 2-3%
NS
GULATIO
RE
DID YOU
KNOW?
Co-pays have
been rising on
reimbursements
related to recovery
support.
Caregiving Innovation Frontiers | 31
CARE COORDINATION
CARE PLANNING, CARE PROFESSIONAL ENGAGEMENT, RECORDS & BENEFITS, RECOVERY SUPPORT
MARKET TRENDS
B2B SPENDING HAS DOMINATED—SO FAR
Recent trends in care
delivery, such as the move
to integrated care systems
and population health, have
spurred heavy investments
in care coordination. In
fact, more than 80 percent
of chief medical informatics
officers said they are looking
to purchase population
health management
technology in 2015.
Yet caregivers to date
have remained largely
passive participants of care
coordination efforts.
· Only 2%–3% of
consumers with a chronic
condition reported
receiving support from a
care coordinator.
· Extensive training and
slow data integration have
slowed the rollout of these
efforts.
However, hybrid revenue
models are emerging. Caresync,
for instance, offers care
planning and benefits
management in a tiered
fashion. Tools for do-ityourself care planning are
free, and for $29 a month,
caregivers can amp this
service up to “concierge”
level, with a health assistant
helping to schedule medical
appointments and care
coordination tasks. For a
$129 one-time fee, Caresync
will aggregate a care
recipient’s medical records.
· Although the care coordination software and solution market
has received plenty of venture funding and care provider
organizations have invested heavily in this area, consumers
have yet to benefit from them in a meaningful way.
· Spurred by competition, healthcare providers have made online
scheduling and ER wait-time alert services more convenient.
· The recovery support market is largely driven by care providers
through their transitional care programs.
DEMAND FOR PRICE TRANSPARENCY
POLICY AND COMPETITION ARE DRIVING GROWTH
Federal mandates for price
transparency, plus cost
shifts from employers to
employees, are spurring
market demand for benefits
management services.
Collective Health currently
offers these services in
California, with plans to
expand across the United
States by 2017.
As healthcare becomes
more competitive, health
systems are attempting
According to a 2015 Public Agenda survey, 56 percent
of Americans try to determine out-of-pocket costs or how
much insurance will cover before obtaining services.
32
to distinguish themselves
through services that
streamline the details.
Tyze, a startup acquired
by Saint Elizabeth Health
Care in Canada, connects
caregivers, family, friends,
and helpers on a shared
calendar and private
network for sharing files
and photos.
Consumer demand for price transparency is fueled by continued cost shifting from
employers to employees and the rising use of high deductible plans.
Out-of-pocket costs for premiums and deductibles (Commonwealth Fund study):
2003
4.8%
OF HOUSEHOLD
INCOME
2013
9.6%
OF HOUSEHOLD
INCOME
Caregiving Innovation Frontiers | 33
4/6
TRANSITION
SUPPORT
A
s care recipients age, an increasing number of caregivers find
themselves grappling with transitions. Some struggle to find one of
the only 5,500 aging-in-place certified remodelers among more than
650,000 across the country. Others have difficulty finding information
about installing mobility solutions, like a wheelchair ramp or an automated
chair lift.
If the next step is a long-term care facility, a fragmented market and
poor transparency complicate the search. What are the best-priced options
in a care recipient’s region? Who can provide objective information on
service quality? How will Mom’s early-onset dementia affect her care
options?
With research and guidance more important than ever, a growing
number of commercial services and support tools have emerged and
become more convenient to use. In many cases, caregivers themselves cover
the cost of this added convenience.
HOME
RETROFIT
INSURANCE
LEGAL
BENEFITS
ANCE
LEGAL
INSUR
HOS
ANCE
LEGAL
INSUR
PIC
E
HOS
PIC
E
MARKET REVENUE FORECASTS 2016–2020
Total market revenue includes out-of-pocket spending from both care recipients and caregivers,
as well as reimbursements from private and public insurers and business-to-business spending.
CARE
REFERRAL
HOSPICE/
FUNERAL
CAREGIVER OUT-OF-POCKET SPENDING
TOTAL CAREGIVER SUPPORT MARKET
$21.3B
$4.3B
CUT-R
KEY TAKEAWAYS
ATE
D
“
IDE
R
legal assistance,
and
long-term
care insurance
L
EGAL
LANDS
CAPE
planning.
•
RE•TENWatch for big, established
TION
RATES
ET A
players inGhome
retrofit,
• Home retrofit, funded
A
GETrecipients, is the
by care
RIDE
biggest opportunity in
terms of market size due to
America’s aging population.
EALS
CUT-R
AT
DEALS E
RE
TENTIO caregivers to cover
Expect
N
RATES
long-term care insurance
planning, legal assistance,
and Lhospice/funeral
E
LANDS GAL
CAPE and third parties
planning
(members of the health
system) long-term care
referral services.
I want her to be happy and comfortable in her home
with the people she loves for as long as she’s alive.”
Caregiving Innovation Frontiers | 35
34
TIONS
REGULA
TIONS
REGULA
HOME RETROFIT SERVICES, LONG-TERM CARE INSURANCE PLANNING, LONG-TERM
CARE PROVIDER REFERRAL, LEGAL ASSISTANCE, HOSPICE/FUNERAL PLANNING
TRANSITION SUPPORT
LEGAL
E
RANC
INSU
HOS
ANCE
LEGAL
INSUR
PIC
E
HOS
PIC
LEGAL
E
RANC
E
INSU
SOLUTION
CAGR
CUT-R
AT
DEALS
DEALS E
products, services that make
RETEInformation,
RETE
NTION
RATEindependent
living
easier and safer RATE NTION
S
A
T
E
S
G
UT-
LE
LANDS GAL
CAPE
TOTAL
MARKET
15.5%
EXAMPLES IN THE MARKET
LE
LANDS GAL
CAPE
DIRECT
CAREGIVER
SPENDING
?
$
2-3% 2-3%
There are over 650,000
NS
in the United
TIOremodelers
REGULA
States—yet only 5,500 of them
are aging-in-place certified.
CU
RAT
T-RAT
DEALS E purchase guides, quote services
DEALS E
Resources,
A
GET
RIDE
RIDE
$59–$101M
THIS
INCLUDES
C
TE
8.1%
E
TOTAL MARKET OPPORTUNITY
$59–$101M
$2.6–$3.5B
DID YOU KNOW?
36
DIRECT CAREGIVER PORTION
THIS
CUT-RINCLUDES
A
TIONS
REGULA
HOS
PIC
SOLUTION
TOTAL MARKET OPPORTUNITY
$512–$701M
DIRECT
CAREGIVER
SPENDING
E
OPPORTUNITY 2016-2020
DIRECT CAREGIVER PORTION
8.1%
LEGAL
LONG-TERM CARE INSURANCE PLANNING
OPPORTUNITY 2016-2020
A
GET
RIDE
ANCE
INSUR
PIC
HOME RETROFIT SERVICE
CAGR
HOS
!
15.5%
TIONS
REGULA
TOTAL
MARKET
RETEN
TION
RATES
RETEN
TION
RATES
A
GET
RIDE
EXAMPLES IN THE MARKET
LE
LANDS GAL
CAPE
LE
LANDS GAL
CAPE
DID YOU KNOW?
Only 8.1 million Americans are protected with
long-term care insurance. And the best age to
start planning is between ages 52 and 64.
2-3% 2-3%
–American Association for Long-Term Care Insurance
NS
TIO
REGULA
Caregiving Innovation Frontiers | 37
HOME RETROFIT SERVICES, LONG-TERM CARE INSURANCE PLANNING, LONG-TERM
CARE PROVIDER REFERRAL, LEGAL ASSISTANCE, HOSPICE/FUNERAL PLANNING
TRANSITION SUPPORT
LEGAL
E
RANC
INSU
HOS
ANCE
LEGAL
HOS
INSUR
PIC
E
PIC
ANCE
E
INSUR
SOLUTION
OPPORTUNITY 2016-2020
E
HOS
PIC
CUT-R
AT
CUT-R
E
AT
DEALS for
Guides
comparing nursing homes, placement
DEALS E services
RETEN
TION
RATES
DIRECT CAREGIVER PORTION
E
A
GET
RIDE
EXAMPLES IN THE MARKET
LE
LANDS GAL
CAPE
RETEN
TION
RATES
LE
LANDS GAL
CAPE
TOTAL MARKET OPPORTUNITY
$91–$175M
$770M–$1.2B
THIS INCLUDES
DIRECT
CAREGIVER
SPENDING
PIC
LEGAL ASSISTANCE
TOTAL MARKET OPPORTUNITY
None
0%
LEGAL
A
INSUR
OPPORTUNITY 2016-2020
DIRECT CAREGIVER PORTION
A
GET
RIDE
NCE
HOS
SOLUTION
LONG-TERM CARE PROVIDER REFERRAL
CAGR
LEGAL
CAGR
$91–$175M
CUT-R INCLUDES
THIS
ATE
CUT-R
AT
DEALS E
RETEPower
will,
RETliving
NTION of attorney, advance directive,
ENTIO
RATES
N
R
A
A
estate planning
documentation
T
T
E
S
GE
DEALS
A
GET
RIDE
18.7%
DIRECT
CAREGIVER
SPENDING
RIDE
LE
LANDS GAL
CAPE
LEGAL
EXAMPLES IN THE MARKET LANDSCAPE
DID YOU KNOW?
11.3%
TIONS
REGULA
TOTAL
MARKET
38
Someone turning age 65 today
has almost a 70% chance of needing
some type of service or support
in their remaining years.
2-3% 2-3%
NS
TIO
REGULA
–US Department of Health and Human Services
18.7%
TIONS
REGULA
TOTAL
MARKET
2-3% 2-3%
TIONS
REGULA
DID YOU KNOW?
Services are emerging that let
consumers hire lawyers and
legal assistants like how they
hail a cab.
LAWYER
ME!
Caregiving Innovation Frontiers | 39
HOME RETROFIT SERVICES, LONG-TERM CARE INSURANCE PLANNING, LONG-TERM
CARE PROVIDER REFERRAL, LEGAL ASSISTANCE, HOSPICE/FUNERAL PLANNING
TRANSITION SUPPORT
ANCE
LEGAL
INSUR
HOS
ANCE
LEGAL
HOS
INSUR
PIC
E
A
GET
RIDE
PIC
E
SOLUTION
HOSPICE/FUNERAL PLANNING
CUT-R
AT
DEALS E
RETEN
TI
RATES ON
LE
LANDS GALPUTTING
CAPE
OPPORTUNITY 2016-2020
DIRECT CAREGIVER PORTION
TOTAL MARKET OPPORTUNITY
$38–$59M
CAGR
$38–$59M
TIONS
REGULA
CUT-R
T-RAT
AT
DEALS E
DEALS E
Provider
evaluation, funeral planning, will/trust
management
RETEN
RETEN
TION
T
IO
RATES
N
RATES
A
GET
THIS
INCLUDES
CU
A
GET
RIDE
12.6%
DIRECT
CAREGIVER
SPENDING
12.6%
TIONS
REGULA
TOTAL
MARKET
RIDE
EXAMPLES
IN THE MARKET
LE
LANDS GAL
CAPE
LE
LANDS GAL
CAPE
2-3% 2-3%
DID YOU KNOW?
TIONS
REGULA
ALL THE DETAILS IN ONE PLACE
Caregiving transitions can
involve a host of tasks and
details, often in unfamiliar
areas. Passare eases the stress
of end-of-life and funeralrelated tasks by delivering
information, planning tips,
and a matchmaking service
for service providers. Funeral
professionals pay annual
subscription fees for these
connections to potential
customers.
Avvo serves as a similar
hub/clearinghouse for
legal services. Funded
2-3%
by advertising and other
products and services
for lawyers, it connects
customers for free to
information on 225,000
participating lawyers,
user reviews, and services
including an online forum.
EXPANDING SERVICES—AND REVENUE STREAMS
Avvo expands upon
this revenue model with
a premium service for
caregivers: the ability to hire
a lawyer for as low as $39
for a 15-minute phone call.
Houzz, the nation’s
largest online community
for home renovation
and design, takes this
diversification even further
with its “3C” strategy:
content, community, and
commerce. Caregivers
can find a wealth of
information for a retrofit
project, from photos
of projects to qualified
designers and contractors.
Professionals can join the
community through listings
and paid advertising. The
platform also makes money
through its extensive online
store of furniture, décor,
and gift items.
Lack of an end-of-life plan, created
well in advance, typically leads to
prolonged hospitalization, soaring
medical bills, and unnecessary pain
and suffering for everyone.
–Dying in America: Improving Quality and Honoring Individual
Preferences Near End of Life, Institute of Medicine
40
Caregiving Innovation Frontiers | 41
5/6
SOCIAL
SITUATIONS
LIFE
ENRICHMENT
APPS
O
ver the past several years, social networks, smartphones, and digital
technology have emerged to help caregivers and the people they care
for make social and cultural connections and break down the social and
emotional barriers caused by aging. Sharing life’s moments has become easier
and more personalized, with activities synchronized in real time, methods of
sharing embedded in common mobile apps, and advertising funding these freeto-the-consumer innovations.
As care recipients become more comfortable with social media and
increasingly access these networks via smartphones, adoption of such solutions
is rising. According to a 2014 Pew Research Center survey, more than 50
percent of people age 65-plus are using Facebook and 63 percent of those age
50-64 are active users. Yet many new technology innovations remain off of
seniors’ radar. And a great need still exists for more services that gather content
specifically of interest to seniors and deliver it through one easy-to-use and
trusted source.
SOCIAL
WELL-BEING
ANCE
LEGAL
INSUR
HOS
ANCE
LEGAL
INSUR
PIC
E
HOS
PIC
E
MARKET REVENUE FORECASTS 2016–2020
Total market revenue includes out-of-pocket spending from both care recipients and caregivers,
as well as reimbursements from private and public insurers and business-to-business spending.
CAREGIVER OUT-OF-POCKET SPENDING
TOTAL CAREGIVER SUPPORT MARKET
$4.7B
$552M
LIFE
COMPANION
KEY TAKEAWAYS
CUT-R
ATE
“
42
I believe that her ability to stay strong had something to do
with my making sure she had a part in all of her decisions—
whether medical or personal—and to maintain her dignity
as a human being who had gone through a Depression along
with many social changes in her lifetime.”
TIONS
REGULA
CUT-R
AT
DEALS E
Third parties such
RETEN • Digital inclusion
TION
RATES
presents the
as advertisers are
•
• While
RETcaregivers
ENTIO
N
RATES monitor,
A
influence,
GET
RIDE
largest market
supporting services
and often participate
for
digital
inclusion,
in activities,
LEGAL
LE potential—but also
LANDS GALcompetition from
life
enrichment
and
theyLAonly
NDSCpay
CAPE
APE
large, established
empowerment,
out of pocket for
players like
and community
life companion
Instagram and
networking.
services.
WhatsApp.
• All sub-segments
exceptGEcommunity
TA
RIDE are
networking
expected to see
double-digit growth.
DIG ITAL
INCLUSION
DEALS
TIONS
REGULA
Caregiving Innovation Frontiers | 43
EMERGENCY
SOCIAL
WELL-BEING
DETECTION & RESPONSE
CE
URAN
LEGAL
HOS
ANCE
PIC
INS
LEGAL
INSUR
E
DIGITAL INCLUSION, LIFE ENRICHMENT & EMPOWERMENT, COMMUNITY NETWORKING, LIFE COMPANION
HOS
PIC
CE
URAN
E
SOLUTION
DIGITAL INCLUSION
TOTAL MARKET OPPORTUNITY
$19–$100M
CUT-R
CUT-
A
59.8%
TIONS
REGULA
TOTAL
MARKET
HOS
E
PIC
T
RATE
DEALS E
Photo/video
sharing, messaging, video D
chat,
EALS
RETEvirtual
RETEN
NTION reading, games
TIO
RATES
DIRECT CAREGIVER PORTION
$65–$410M
THIS INCLUDES
DIRECT
CAREGIVER
SPENDING
LEGAL
E
OPPORTUNITY 2016-2020
DIRECT CAREGIVER PORTION
51.6%
ANCE
INSUR
LIFE ENRICHMENT AND EMPOWERMENT
OPPORTUNITY 2016-2020
A
GET
RIDE
HOS
PIC
INS
SOLUTION
CAGR
LEGAL
RATES
A
GET
RIDE
LE
LANDS GAL
CAPE
EXAMPLES IN THE MARKET
$5–$25M
CAGR
N
LE
LANDS GAL
CAPE
2-3% 2-3%
ATIONS
DID YOU
REGULKNOW?
60% of adults
age 50-59 own
smartphones.
TOTAL MARKET OPPORTUNITY
$11–$71M
CUT-RINCLUDES
THIS
ATE
CUT-R
AT
DEALS E
RETEMood-sensing
apps, self-organization
tools,
RET
NTION
ENTIO
RATES
N
R
A
A
T
personal enrichment
apps
T
E
E
S
G
DEALS
A
GET
RIDE
54.5%
DIRECT
CAREGIVER
SPENDING
59.6%
TIONS
REGULA
TOTAL
MARKET
RIDE
LE
LANDS GAL
CAPE
EXAMPLES IN THE MARKET
LE
LANDS GAL
CAPE
DID YOU KNOW?
2-3% 2-3%
TIONS
REGULA
Almost half of women age
75 and above live alone.
—The Administration on Aging
—The “Getting to Know
Americans Age 50-Plus”
report by AARP
44
Caregiving Innovation Frontiers | 45
EMERGENCY
SOCIAL
WELL-BEING
DETECTION & RESPONSE
CE
URAN
LEGAL
HOS
ANCE
PIC
INS
LEGAL
INSUR
E
DIGITAL INCLUSION, LIFE ENRICHMENT & EMPOWERMENT, COMMUNITY NETWORKING, LIFE COMPANION
HOS
PIC
LEGAL
CE
URAN
E
DIRECT CAREGIVER PORTION
TOTAL MARKET OPPORTUNITY
None
T-RAT
DEALS E
Social
networks,
RETEN
TION
RATES
ET A
digital meetup
G
RIDE
CUT-R
ATE
DEA
bulletins,
neighborhood
LS
RETEN
TION
RATES
EXAMPLES IN THE MARKET
LE
LANDS GAL
CAPE
CAGR
$13–$84M
THIS
INCLUDES
CU
T-RAT
DEALS E
apps
LE
LANDS GAL
CAPE
TOTAL MARKET OPPORTUNITY
$13–$84M
$548–$785M
THIS
INCLUDES
CU
DIRECT
CAREGIVER
SPENDING
E
OPPORTUNITY 2016-2020
DIRECT CAREGIVER PORTION
0%
PIC
LIFE COMPANION
OPPORTUNITY 2016-2020
A
GET
RIDE
E
HOS
SOLUTION
COMMUNITY NETWORKING
CAGR
LEGAL
ANCE
INSUR
PIC
INS
SOLUTION
HOS
A
GET
RIDE
62.8%
DIRECT
CAREGIVER
SPENDING
Digital companion services, online
for care recipients
RETEN
TION
RATEgroups
S
A
GET
RIDE
LE
LANDS GAL
CAPE
EXAMPLES IN THE MARKET
CUT-R
ATE
D
supportEALS
RETEN
TION
RATES
LE
LANDS GAL
CAPE
DID YOU KNOW?
DID YOU KNOW?
8.5%
TIONS
REGULA
TOTAL
MARKET
2-3% 2-3%
NS
MoreTIOthan
REGULA
50 percent
of people age 65-plus
are using Facebook.
—2014 Pew Research Center survey
46
TIONS
REGULA
62.8%
TOTAL
MARKET
2-3% 2-3%
TIONS
REGULA
Mature and boomer generations have
become more comfortable with social
media and social network services,
including online dating services.
Caregiving Innovation Frontiers | 47
SOCIAL
EMERGENCY
WELL-BEING
RESPONSE
LONGINCLUSION,
-TERM
GDETECTION
ROWTH
POTENTIAL
DIGITAL
LIFE
ENRICHMENT
&&EMPOWERMENT,
COMMUNITY NETWORKING, LIFE COMPANIONS
DIGITAL INCLUSION, LIFE ENRICHMENT & EMPOWERMENT, COMMUNITY NETWORKING, LIFE COMPANION
“GENERALISTS” FOCUS ON CAREGIVERS AND CARE RECIPIENTS
THREE EXAMPLES OF HOW TECHNOLOGY IS MAKING SHARING EASIER
A company doesn’t have to
be a specialist in caregiving
to offer solutions for social
inclusion.
With HomeTeam, launched
in 2015, Panasonic entered
the caregiving market with a
service that connects friends
and family members across
distances and generations.
A free membership enables
unlimited video chat. Like
many such services for social
inclusion, the revenue model
is subscription-based; an
$8.99 premium membership
delivers unlimited access to
an online library of books
and games.
GiveGab, another
example, operates primarily
as a fundraising tool.
However, the platform also
has a feature through which
users can find volunteering
opportunities based on
skill and interest, making
it well suited for a senior
conducting a specialized
search. Once a volunteer
is signed up, he or she can
share opportunities with
friends, connect with others
through online games, track
their volunteering impact,
and receive email reminders.
NUCLEUS LIFE
SMART INTERCOM
EASE OF USE CAN HELP ENTRANTS STAND OUT
While apps dominate the
sharing experience, solutions
also are emerging that
prioritize a simple look and
intuitive use. One example
is Teamup, a cloud-based
calendar system for managing
and sharing events. Events
are shared via web links in
emails—no user login or
account required—and the
base service is free.
48
It has to be
easy to use...
...and work great.
MOBILE
APPS
BREEZIE
TABLET
Caregiving Innovation Frontiers | 49
6/6
COMPANION
SERVICES
T
he job of a caregiver is neither easy nor short-lived. On average, people
spend $19,525 and two to six years of their lives in this role, according
to the National Alliance on Caregiving.
Often the struggle to maintain balance is a silent one. The National
Alliance for Caregiving found 50 percent of working caregivers to be
reluctant to tell their supervisor about their caregiving responsibilities. And
often important questions go unanswered. When I need a break or have an
emergency at work, who can fill in for me? How do other caregivers handle
challenges like mine?
Finding answers isn’t easy. Social support networks especially for
caregivers can be hard to find. Respite care services vary in quality and
accountability. Meanwhile, employer wellness programs may not address
caregiving-related stress and issues.
Yet the marketplace is moving swiftly to address these needs. An aging
population of care recipients is driving demand for backup caregiver services
(and driving up the average cost of these services as well). More and more
caregivers are joining caregiving communities, generating the advertising
revenue that makes such communities viable. And employer investment is
rising in work-life balance programs.
CAREGIVER
QUALITY OF LIFE
HEALTH
& WELLNESS
BACKUP
CARE
ANCE
LEGAL
INSUR
SOCIAL
SUPPORT
FINANCIAL
& JOB SECURITY
ADULT
DAY CARE
HOS
ANCE
LEGAL
INSUR
PIC
E
HOS
PIC
E
MARKET REVENUE FORECASTS 2016–2020
Total market revenue includes out-of-pocket spending from both care recipients and caregivers,
as well as reimbursements from private and public insurers and business-to-business spending.
CAREGIVER OUT-OF-POCKET SPENDING
TOTAL CAREGIVER SUPPORT MARKET
$17.2B
$13.7B
KEY TAKEAWAYS
CUT-R
ATE
“
E
RID services
support from
funded
L
EGAL by third-party
LANDSrevenue
models.
CAPE
•
RE•TENYet caregivers will
TION
RATES increasingly
A
GET seek social
• Expect caregivers to spend
out ofGEpocket
to get backup
TA
RIDEstay healthy.
care and
DEALS
CUT-R
AT
DEALS E
RE
Employer-funded
services
TENTIO
N
RArelated
to financial/job
TES
security are expected to
increase,
LEGA joining existing
LAsolutions
NDSCA L by large,
PE
established players.
It truly takes a toll on a single caregiver to NEVER be given
‘time off’ from the 24 hours of care each day.”
Caregiving Innovation Frontiers | 51
50
TIONS
REGULA
TIONS
REGULA
CAREGIVER QUALITY OF LIFE
E
ANC
INSUR
LEGAL
HOS
RESPITE & BACKUP CARE, SOCIAL SUPPORT, HEALTH & WELLNESS, FINANCIAL/JOB SECURITY
ANCE
LEGAL
INSUR
PIC
E
HOS
PIC
E
ANC
INSUR
E
SOLUTION
LEGAL
PIC
E
SOLUTION
DIRECT CAREGIVER PORTION
TOTAL MARKET OPPORTUNITY
$1.4–$2.3B
CUT-R
AT
DEALS
DEALS E
Respite
care
such
as
home
companion
services,
RETEN
RETEN
TIO
TION
RATESadultNdaycareAservices, proxy caregivers
R
ATES
GET
E
CAGR
RIDE
LE
LANDS GAL
CAPE
EXAMPLES IN THE MARKET
TOTAL MARKET OPPORTUNITY
None
$1.4–$2.3B
THIS
CUT-R INCLUDES
AT
DIRECT
CAREGIVER
SPENDING
E
HOS
OPPORTUNITY 2016-2020
DIRECT CAREGIVER PORTION
13.3%
LEGAL
SOCIAL SUPPORT
OPPORTUNITY 2016-2020
A
GET
RIDE
ANCE
INSUR
PIC
RESPITE AND BACKUP CARE
CAGR
HOS
LE
LANDS GAL
CAPE
$22–$156M
THIS
CUT INCLUDES
-RATE
A
GET
RIDE
0%
DIRECT
CAREGIVER
SPENDING
CUT-R
DEALS
DEALS
Caregiver
support groups, social networks,
RETEN
RETEN
T
IO
N
TION
platforms
RATEknowledge-sharing
R
S
ATE
ATES
A
GET
RIDE
LE
LANDS GAL
CAPE
LEG
EXAMPLES IN THE MARKET LANDSCAPAEL
DID YOU KNOW?
13.3%
TIONS
REGULA
TOTAL
MARKET
52
2-3% 2-3%
Despite the need for
support,
of family
S
TION85%
REGULA
caregivers receive no
respite services at all.
–Caregiving in the U.S.
2015 Report
62.1%
TIONS
REGULA
TOTAL
MARKET
DID YOU KNOW?
2-3% 2-3%
TIONS
REGULA
Four in ten caregivers consider
their caregiving situations to be
highly stressful.
–Caregiving in the U.S. 2015 Report
Caregiving Innovation Frontiers | 53
CAREGIVER QUALITY OF LIFE
E
RANC
LEGAL
INSU
HOS
ANCE
RESPITE & BACKUP CARE, SOCIAL SUPPORT, HEALTH & WELLNESS, FINANCIAL/JOB SECURITY
LEGAL
HOS
INSUR
PIC
E
PIC
E
RANC
E
INSU
SOLUTION
DIRECT CAREGIVER PORTION
PIC
E
HOS
PIC
E
SOLUTION
RAT
DEALS E
Wellness
programs,
RETEN
TION
RATES
ET A
DIY tools
G
RIDE
EXAMPLES IN THE MARKET
LE
LANDS GAL
CAPE
CUT-R
AT
DEALS E
RETEN
TION
RATES
TOTAL MARKET OPPORTUNITY
$63–$77M
$1.1–$1.7B
THIS
CUT- INCLUDES
DIRECT
CAREGIVER
SPENDING
LEGAL
DIRECT CAREGIVER PORTION
TOTAL MARKET OPPORTUNITY
$730–$913M
6.1%
ANCE
INSUR
OPPORTUNITY 2016-2020
OPPORTUNITY 2016-2020
A
GET
RIDE
HOS
FINANCIAL/JOB SECURITY
HEALTH AND WELLNESS
CAGR
LEGAL
CAGR
THIS
INCLUDES
CU
T-RATE
D
E
A
LS
Personal
budgeting/financial
A
GET
RIDE
5.2%
LE
LANDS GAL
CAPE
$155–$200M
DIRECT
CAREGIVER
SPENDING
RETEN
TION
RATEwork-life
S
balance programs
A
GET
RIDE
LE
LANDS GAL
CAPE
CUT-R
ATE
D
planning, EALS
RETEN
TION
RATES
EXAMPLES IN THE MARKET
LE
LANDS GAL
CAPE
DID YOU KNOW?
11%
TIONS
REGULA
TOTAL
MARKET
2-3% 2-3%
Caregivers often tend to overlook
their Town
well-being and they
IONS
REGULA
have a higher-than-normal
incidence of getting sick.
?
54
6.5%
TIONS
REGULA
TOTAL
MARKET
$
2-3% 2-3%
TIONS
REGULA
DID YOU KNOW?
!
One in seven of the sandwich generation
caregivers are providing financial support
for both their children and their aging parents.
—2013 Pew Research Report
Caregiving Innovation Frontiers | 55
CAREGIVER
LIFE HEALTH & WELLNESS, FINANCIAL/JOB SECURITY
RESPITE & BACKUPQUALITY
CARE, SOCIALOF
SUPPORT,
EASING THE QUEST
FOR RELIEF
Having a backup plan in
case of work or family
events or just the need
for a break is a caregiver
essential—and a formidable
challenge. Even as more
caregivers find themselves
juggling unpaid care with
rising work demands and
children, infrastructure
growth hasn’t kept up.
For instance, there was
no growth in the number
of adult day care centers
between 2006-2012.
Finding these centers
and other options in the
fragmented respite/proxy
care marketplace can be a
complex and inconvenient
process.
Companies old and
new are stepping in to fill
these needs. Room2Care,
founded in 2014, connects
caregivers in South Florida
through vetted members
of the community with an
extra room and extra time.
And LifeCare, a 30-year-old
work-life rebalance service
for employers, has a Backup
Care Connection service
that helps employees secure
and pay for temporary
senior care.
Relief can take the
form of understanding, a
listening ear, and advice
RESPITE & BACKUP CARE, SOCIAL SUPPORT, HEALTH & WELLNESS, FINANCIAL/JOB SECURITY
CUMULATIVE MARKET REVENUE OPPORTUNITY OVER NEXT FIVE YEARS
Total caregiver support solution market
Caregiver out-of-pocket spending
300
$279
$207
200
as well. Marketed through
care providers and insurers
throughout the United
States, Big White Wall lets
caregivers anonymously
share their challenges and
concerns with peers and
trained professionals who
can provide support as
needed.
$145
$91
100
$43
$20
$10
$60
$45
$32
0
2016
2017
2018
2019
2020
(2016–2020, in $ billion)
EMPLOYER INVESTMENT IN WORK-LIFE BALANCE
INVISIBLE NO MORE
As caregiving increasingly
touches all generations—
Baby Boomers and Gen Xers
caring for parents, more and
more Millennials getting to
know their grandparents—
56
the business world is taking
notice. Of the companies
surveyed in a 2014 Family
and Work Institute study,
three out of four provide
either paid or unpaid
leave. In a 2015 survey by
CareerArc, 53 percent are
planning to invest more in
work-life balance programs
to improve workers’ quality
of life. Financial services
companies also are addressing
caregivers’ needs for lowcost, personalized help with
financial planning.
53% of employers plan to invest
more in their work-life balance
programs in 2015, according to the
“2015 Workplace Flexibility Study”
sponsored by workplacetrend.com
and CareerArc.
53%
PLAN TO INVEST IN
WORK-LIFE BALANCE
PROGRAMS
Caregiving Innovation Frontiers | 57
CAREG IVING
INNOVATION
FRONTIERS
JANUARY 2016
DOWNLOAD THE FREE 2016 REPORT
58
You can download a free copy of the full report from http://goo.gl/jaUyhH
Other Caregiving and Healthy Living Insights can be found at http://www.aarp.org/cif
Caregiving Innovation Frontiers | 59
AARP is a nonprofit, nonpartisan organization, with a membership
of more than 37 million, that helps people turn their goals
and dreams into real possibilities, strengthens communities
and fights for the issues that matter most to families such as
healthcare, employment security and retirement planning.
AARP’s vision is to catalyze innovation and entrepreneurship
in the marketplace around breakthrough products, experiences,
and business models for health technologies benefiting the 50+.
At AARP we are collaborating with the industry in the
following areas:
· MARKET AWARENESS: Raising awareness of the market
opportunity, needs, and wants of the 50+
· MARKET DEVELOPMENT: Influencing ecosystem
development for consumer-centric health tech for the 50+
· INNOVATION SHOWCASE: Creating platforms for
showcasing innovative technologies
· MEMBER INVOLVEMENT: Engaging AARP members in
providing early feedback on emerging trends and innovation
©2016 AARP
www.aarp.org
60