Category: Medical

Medical expenses are the leading cause of bankruptcy in the U.S. As the Boomer generation hits retirement age, paying for healthcare will only get more challenging. So what’s the solution?

Some people turn to crowdfunding to fill in the gaps that Medicare and Social Security leave. The medical category is growing exponentially on sites like GoFundMe. According to a recent article in Time, “Medical, Illness and Healing” is GoFundMe’s most popular section, bringing in 26% of all donations. In 2014, it helped raise $147 million for medical costs, up from $6 million in 2012.

Crowdfunding does have drawbacks, especially for members of the 65 and over crowd, who often suffer from common chronic conditions of aging, not exotic diseases. According to a 2014 Georgia Tech study, showing that a condition is rare or unique drives people to donate. And in a New York Times story, a healthcare expert said, “The need for geriatric care is so far and wide that it’s hard to draw out interest.”

Some families with older relatives, having run out of options, feel they have no other choice but to ask for donations via crowdfunding. But what’s it like to be on the receiving end of these heartfelt electronic pleas? ?

In one case we know of, an entire group of extended family and friends received emails with a link to a crowdfunding site. One branch of the family was facing major financial expenses for their father, an elderly man with serious health issues. Because the father’s healthcare expenses had decimated his funds, his children felt they had no other option but to ask for contributions through the crowdfunding site. They plan to care for their father at home, and part of the donated money will go toward making the house wheelchair accessible.

Upon receiving the emails, the potential donors felt sympathetic to the situation, knowing how difficult it was for the man’s children to reach out. Still, the request caused a few ripples of controversy, as many of the family and friends were dealing with their own serious financial challenges. They pulled together and raised some money, but the man’s children are still short of their goal.

That’s not uncommon. Although some people are lucky enough to raise thousands of dollars through crowdfunding, most campaigns do not go viral and most pledges come from the user’s personal network of family and friends. The average amount raised at GoFundMe is just $1,126. Then, there are taxes to deal with, the site fee and the risk that the insurance company will deduct the amount received from its part of the payment.

For many people, crowdfunding is not a magic bullet. But, with hundreds of sites out there and more popping up all the time, it looks like it’s here to stay.

As healthcare expenses keep rising as our population ages, it seems that our inboxes may not only be clogged with medical bills, but with crowdfunding appeals.

According to the National Parkinson Foundation, around 1 million people currently suffer from Parkinson’s disease in the U.S., and 50,000-60,000 new cases being diagnosed each year.

For those suffering from the disease, simple tasks such as eating can become increasingly difficult as tremors increase. The LiftWare spoon, developed by Lift Labs, addresses that issue by providing a simple way for sufferers to maintain their independence in one area of their life.

Created by Anupam Pathak, a student at the University of Michigan, the spoon features anti-tremor technology, which counter-balances the user’s shaking hand and allows them to eat without spilling.

Here’s how it works: An embedded computer captures motion signals detected by sensors, identifies the user’s tremor, and then moves the spoon in the opposite direction of that tremor – a process the company calls “active cancellation.” You can read more from the developer and the research behind the technology here.

The LiftWare spoon will be available in September at an MSRP of $295, and includes “Lift Pulse,” a free iOS and Android app that records and calculates the magnitude of the tremors using the phone’s built-in accelerometers.

MARKETING INSIGHT: Although the disease can affect any age group, it’s more prevalent among Boomers and seniors, so just like memory issues, we’re bound to see a subsequent increase in the occurrence of the disease as the population ages. Most existing utensils that are used for therapeutic or restorative dining are focused on ergonomics – this unit is “smart.”

Raised awareness and high-profile persons suffering from disabilities (thank you, Michael J. Fox) have helped to stimulate the number of products and services catering to those consumers. Food and beverage brands, as well as houseware companies, senior care and therapy providers would be wise to partner with smart tech innovations and find ways to cater to the physical ailments suffered by Boomers and seniors.

Regards,

The Varsity Team

Less than two years ago, analysts were predicting the market for anti-aging products, services and innovations would grow to more than $114 billion, thanks to increasing demand from Boomers and seniors.

To uncover part of that demand, we need look no further than Project Looking Glass II. What does skincare have to do with senior services? On the surface, nothing. But in that study, many of our retirement community subjects were still in the workforce and planned to remain there. Apply that mindset nationwide, and you’ve got tens of thousands of potential customers who are still looking to maintain a youthful appearance to remain relevant in the workplace.

The analysts were right and wrong. While the market has indeed grown, it has become saturated, and the category’s main contingent consists of women over 55 who report being confused by the number of products as well as their claims.

The industry has responded (wisely) with a “stage not age” push, launching new products that address skincare beyond the physical signs of aging such as wrinkles, lines and age spots. New innovations include products that address skin needs due to changes in life stage – including hormonal changes. Yes, you read that correctly.

Manufacturers claim that decreased estrogen production associated with menopause or aging can affect the skin’s ability retain moisture or repair itself.

Anti-aging skincare products that address changing skin needs beyond just treating wrinkles may help to bolster category sales. Murad leads the way with its Resurgence® line, targeting consumers going through menopause. Vichy Laboratories collaborated with not only dermatologists, but also obstetricians, gynecologists and psychologists to understand how women’s hormonal changes impact the skin. Finally, Naterra International’s Phase+ line of skincare products is specifically designed to address the effects of diabetes, which tends to cause extremely dry, cracked skin.

It’s an interesting trend. And although it’s currently relegated to the high-end brands, experts are quick to point out that, given the competitive nature of the skincare industry, consumers will eventually see a lot of “me too” mass marketing.

MARKETING INSIGHT: The health and beauty market has always been a bit ahead of the curve, and they were early to realize the spending power of the mature market. Products that create unique positioning while addressing typical consumer concerns, as well as connecting a youthful appearance to workplace success are the opportunities.

Smart mature consumers already agree that lifestyle choices such as diet, sleep and exercise impact aging and its effects. However, products that speak to overall wellness, as opposed to just treating the physical signs of aging, could be winners.

Regards,

The Varsity Team

The first impressions of health information technology (HIT) – including electronic health records (EHR) and electronic medical records (EMR) – was that it held great promise for improving healthcare quality and safety, along with reducing the costs of providing care in the post-acute or long-term care setting.

The last time we covered HIT, and specifically EHR in the senior living industry, several multi-campus communities had already made the switch into the paperless realm.

Some preliminary data from LeadingAge and Ziegler‘s jointly commissioned LZ 100 survey shows that 79% of the largest LeadingAge members currently have an EHR system in place and plan to increase their investment over the next 12 months.

Note that we said largest.

Despite the advantages of EHR adoption for the long term care facilities using them and payers, the systems don’t come cheap, and costs vary depending on the type of system being deployed.

The study noted that, under a Software as a Service (SaaS), where a provider contracts directly with an EHR/EMR vendor for an annual service charge, implementing the technology could cost nearly $260,000 for a 25-bed facility over a period of five years. A third party-hosted solution would cost the same facility $254,279, while an in-house solution would ring in at more than $355,000 for the same five-year period.

Add to this the fact that EMR and point of care solutions can place a strain on a community’s current IT infrastructure, and require new measures to be put in place for security and access.

The benefits of going “paperless” are well-documented. EMR systems have a direct effect on positive outcomes, staff efficiency, the virtual elimination of medication errors, increased face time with residents and family members, and yes, cost savings.

As assisted living and skilled providers begin partnering with hospitals and other care providers in Accountable Care Organizations (ACOs), it will become more important to be able to move data seamlessly between those organizations, as well as provide hard data showing that they’re providing quality care.

MARKETING INSIGHT: For smaller facilities, adopting an EHR system remains cost prohibitive, and the likelihood of widespread adoption in the next three to five years remains low. Clearly, policy initiatives, programs and financing options must be put into place.

Those who are on the fence about such systems should consider the following:

• Being seen as thought leaders with state-of-the-art technology;
• The federal mandate requiring all healthcare facilities to have electronic health records;
• The ability to align with an ACO or become a preferred destination for post-acute therapy;
• Marked improvements in quality, efficiency and effectiveness of care;
• Improvements to the quality of documentation; and
• Reduced the paperwork for employees.