healthcare videoconferencing lifesize wp
TRANSCRIPT
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A Frost & Sullivan White Paper
Prepared by Iwona PetruczynikIndustry Analyst
The Growing Use ofVideocon ferencing in the Healthcare Market
A Frost & Sullivan White Pape
Prepared by Iwona PetruczyniIndustry Analyst
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ContentsAbstract
...............................................................................................................................
3
ExecutiveSummary............................................................................................................. 4VisualCollaborationintheBroaderContextofTelemedicine................................... 4
TheAgingPopulation.......................................................................................................... 5KeyFactorsintheGlobalHealthcareMarket................................................................. 6
PopulationsLivinginRemoteAreas................................................................................... 7FactorAffectingRemotePopulations............................................................................. 7
InformationandCommunicationTechnologiesinHealthcare........................................... 8Top
Industry
Challenges
to
Visual
Collaboration
in
Healthcare
......................................
8
TelemedicineBenefitsOverview........................................................................................ 9KeyIndustryChallengesAddressedbyPricePerformanceLeadership............................ 11
AboutLifeSize................................................................................................................ 11Criterion1:PriceCompetitiveness............................................................................... 12Criterion2:Features..................................................................................................... 12Criterion3:EaseofUse................................................................................................. 13Criterion
4:
Service
Support
..........................................................................................
13
Criterion5:ProductMatchedtoClientsNeeds............................................................ 13ABOUTFROST&SULLIVAN............................................................................................... 14
Abst ract
Theincreasingdemandfortheservicesofbothpublicandprivatehealthcareorganizationsis
beingdriven
by
factors
including
the
aging
population
in
Western
countries
and
the
need
to
accessremotepopulationsfromcentralizedfacilities.
Communicationstechnologyisplayingan increasingly importantroleinallowinghealthcare
providers to extend the reach of scarce or expensive expertise, and videoconferencing
technology iscontributingdirectly inapplications suchaspatientmonitoring,consultation
andcounseling.
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Bothhealthcareorganizationsandvideoconferencingvendorsarerealizingthepotential in
using inexpensive standard offtheshelf videoconferencing products in these types of
applications, helping providers achieve immediate saving benefits, and helping vendors
developbothknowledgeandspecializedproductoffersinthegrowingmarketsegment.
Executive Summary
Thepractice
of
telemedicine
is
undergoing
significant
evolution
along
with
the
advances
taking place in the overall videoconferencing market. These changes are creating new
challengesforvideoconferencingserviceprovidersastheycontinuetoaddressamarketthat
remains highly under penetrated. For these reasons, healthcare practitioners are
increasingly adopting interactive video or videoconferencing applications to deliver
enhanced access to healthcare as well as to improve the quality of that care at reduced
pricesacrosstheglobe.
VisualCollaborationintheBroaderContextofTelemedicine
BroadScopeofTelemedicine
Telediagnosis Telecounselling
Transfertheresultsofthe
patientobtainedfrom
variousteststothephysician
orspecialists
Diagnosisiscarriedoutin
thephysiciansplacewith
theresultsreceived
Thediagnosisresultisthensentbacktothephysician
whorequestedforthe
diagnosis
Consultationregardingthehealth
issuesofapatientbetween
specialistsandphysicians
Counselling given to the
patient regarding their illness
byaphysicianoraspecialist
Teleconsultation/
RemoteCollaboration
Focusforuseofstandardvisualcollaborationproducts
Source:Frost&Sullivan
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The number of telemedicine programs around the country is growing, and they are
encompassing an increasing number of medical fields. A few years back the costs of
telemedicinevideoconferencingsystemsandtransmissionserviceswereamajorbarrierto
deployments. In the last twoyears,equipmentpriceshavecomedowndramatically while
endpointfunctionality,particularlyvideoquality,hasimprovedsubstantially.
Telemedicineis
unique
among
all
videoconferencing
end
user
applications
in
the
fact
that
it
involves the most critical and sensitive cases. There has been resistance from physicians,
healthcarestaffaswellaspatientsduetoalackofconfidenceinthetechnologyanddueto
cultural and behavioral factors. Doctors who have traditionally considered facetoface
contactwithpatientasaprimarymodeoftreatmenthaveyettoaccepttelemedicineasa
properstandardofmedicalcare.
While videoconferencing remains a primary telemedicine technology, several other
communicationelementssuchasInternetcommunications,teleradiologyandtelepathology
equipment,storeandforwardvideoorvideoondemand(VOD)areincreasinglybeingused
asprimaryinformationdeliverysourcesforthetelemedicineindustry.
Thereare still significantobstacles to fullacceptanceandwidespreaduseof telemedicine
technologies.However,oncetheobstaclesareovercome,thereexistsa largepotentialfor
growth.The successof videoconferencing in telemedicineenvironments in the futurewill
depend mostly on how well it can be aligned with the specific needs of the healthcare
institutions.
Some of the most significant benefits of telemedicine are demonstrated in its ability to
extend the geographic reach of medical care and provide access to medical specialists in
remote and rural areas. However, restrictive reimbursement and legislative policies are
limitingthereachofexistingtelemedicineprograms.
Since
telemedicine
technology
offers
training
and
educational
benefits
to
medical
professionals and organizations at reduced costs, there is great interest in the medical
community regarding telemedicine. However, there remains a resistance from traditional
healthcare facilities thatareunfamiliarwithnewtechnologies. Inaddition,manypotential
adoptersoftelemedicineareseeingresistancefromtheirmedicalstafffearingthattheywill
bereplacedbynewandmoreefficientpracticesbroughtbytelemedicineprograms.
The Aging Population
The rising median ages of the worlds population is caused mainly by a decline in the
fertilityrateandariseinaveragelifespan.
Increase
in
the
percent
of
individuals
who
remain
unmarried
or
do
not
have
children
is
one
ofthemainreasons inthedeclineof fertilityrate,andbythesametokenthedecline in
birthrate.Moreover,averagelifespanorthelifeexpectancyincreasedoverthelastdecades
thankstosignificant improvements inhealthcondition,mainlyduetoadvances inmedical
technology.
By2010,thefirstbabyboomgenerationwillreach65yearsofageandby2030,itwillbein
their 80s and the second baby boom generation will be in their 60s. Despite great
successesinextendingpeopleslives,theagingthepopulationcreatesmajorchallengesto
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countrieseconomicconditions,as it financing isputtinga strainon the sustainabilityof
publicfundsincountriesaroundtheworld.
KeyFactorsintheGlobalHealthcareMarket
Thedisparity innumbers between retirees andactive workers willmagnify spending on
public pensions, health and longterm care and will put great pressure on legislative
branches to keep a balance between increasing public spending and tax revenues. The
socialimplicationwouldincludelongtermelderlycaremainlyduetothechangingdisease
profilefromchronicandinfectiousdiseasestononcommunicablediseaseswhichprolongs
apatient'slife.
As a result of trends like falling birth rate and rising life expectancy, the total worlds
populationwilldeclineandthepercentofpeopleaged65yearsandabovewill increase.In
economicterm,
the
working
age
population
in
the
15
to
64
year
age
group
will
decrease.
Thedependency ratioofpeopleaged65yearsandabove relative to thoseaged15 to64
yearswillincreaseby2050.
Forexamples, inEuropethedemandfor laborwillgrow,as20.0millionworkerswill leave
theworkforcebetween2008and2050.Thisimpliesthattherewillbetwopersonsinsteadof
fourintheworkingageforeverycitizenaged65andabove.
Canada
Relativelyhighgovernment
spendingonhealthcare,small
numberoflocalmarket
players,sizeable
market
UnitedStates
Hugehealthcaremarketand
growing,largeopportunities,
nicheplayerswillbemore
successful
Venezuelaand
Colombia
ConstitutingpartoftheAndean
Region,thesearethefastest
growingcountriesinmany
healthcarecategoriesdueto
largepublic investment
BrazilandMexico
Twolargesthealthcare
marketsinLatin
Americaandgrowingat
asustainedpace
GermanyandSwitzerland
Highspendingonhealthcare,
largemarketwithnottoo
manymarketplayers,
increasingfocusoneHealth
and digitization
UKandtheScandinavian
Countries
Highgovernmentspendingon
healthcareIT,largemarket,
highnumber
of
healthcare
IT
players
SubSaharanAfrica
Limitedcurrentgovernment
spendingonhealthcareIT,
increasesplannedinthefuture.
Privatesectordeveloping
increasingfocusoneHealth.
Moderatenumberofplayers
mainlyoperatingfromSouth
Africa.
AustraliaandNew
Zealand
Highgovernments
pendingonhealthcareIT,
smallnumberoflocal
marketplayers,increasin
focusoneHealthand
digitization
India
Largemarket,lowoperating
costs,excellentlocalskills,
highlocal
competition,distribution
hubtotheMiddle and
SouthEastofAsia
HongKong
Highgovernment
spendingon
healthcare,small
domesticmarket,
gatewaytoChina
Source: Frost &
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In Japan thehealthcarecost is risingwith the increase inelderlypopulation.Around40.0
percentofthehealthcarecostgoestowardelderlyhealthcare.TheJapaneseGovernment's
spending on medical insurance and pension benefits is expected to grow significantly by
2030.
Currently, theU.S.Government'sexpenditureson thoseaged65 yearsandaboveare3.9
timeshigher
than
that
on
children
aged
under
18
years.
The
next
three
decades
will
pose
significantchallengesfortheSocialSecurityprogram,thefederalGovernment,andtheU.S.
economy,withtheretirementofthe77.0millionbabyboomerswhowillsoonbegintodraw
benefits.
Populations Living in Remote Areas
Oneofmajorissuestheworldhealthcaremarketisfacingisthehighnumberofpopulations
living in remoteareas. Forexample, in India,72.0percentof thepopulation lives in rural
areas.
Vast landareawithdifficult/ inaccessibleterrainmakes itconducive for technologytobe
acceptedasamethodofhealthcare. Seasonalisolationofsometractsoflandduetofloods,
snowandotherfactorsareseverelylimitingaccesstomedicalinpersoncare.
Healthcareprofessionals located inruralcommunitiesneedtomaintaintheirskillsthrough
continuingeducation.Theyalso facesignificantbarriers,since theyoftendonothave the
time to travel to cities where continuing education is offered and they often lack the
requiredcommunicationsinfrastructuretoaccesstrainingsessionsremotely.
Anotherchallengethatremoteareasaredealingwith isthatsmallruralhospitalsarebeing
closed,whileothersreducethe levelofserviceandthenumberofbeds.Additionallymany
ruralhealthcare facilitiesare facingconsiderable financial restraints.This ispartlybecause
these hospitals are small, offer a limited scope of specialty services, and are especially
vulnerableto
policy
and
market
changes.
The distances to main metropolitan centers oftenimplyrestrictions onaccess to essential services
Great Distances
In recent years many small rural hospitals have closed
Lack of Healthcare
Infrastructure
Only a small percent of the countrys physicians andspecialistspractice in ruralareas
Lack of Healthcare
Resources
Changes to the paymentsystemhave had a negativeimpacton the financialviabilityofruralhospitals
Medicare Reimbursement
Rural populationsaregenerallyolder Tendto experience higherpovertyrates Tendto be in poorerhealth Generallylesseducated Characterizedbylowerlevelsof insurancecoverage
Generallyexperiencehigherratesofchronicdisease
Rural Versus Urban
Populations
Source: Frost & Sullivan
FactorAffectingRemotePopulations
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Information and Communication Technologies in Healthcare
Information and communication technologies (ICT) are a major tool for information
intensivesectorsthathandle,store,shareandprocessmassiveamountsofdata,information
andknowledge.
Telehealth is a combination of telemedicine and telecare along with the management of
healthcareservices.
This
acts
as
an
umbrella
to
define
all
the
services
that
have
resulted
in
revolutionizing the healthcare sector which is being facilitated by the innovations in ICT.
Oncepatientsbecomeacquaintedwithanewtechnology,theconceptofvirtualdoctorwill
becomemoreacceptable.Issuesliketheneedtotaketimeofftogotoadoctororageneral
reluctancetowardshealthcareproviderswilllikelylessenamongpatients.
According to the World Health Organization, telemedicine is "the delivery of healthcare
services,wheredistanceisacriticalfactor,byallhealthcareprofessionalsusinginformation
and communication technologies for the exchange of valid information, for diagnosis,
treatment and prevention of disease and injuries, research and evaluation, and for the
continuingeducationofhealthcareproviders,allinthe interestsofadvancingthehealthof
individuals
and
their
communities.
Source: Frost & Sullivan
Human Patient/provider reluctance Medium Medium Low
Financial Research funding
Reimbursement
High
High
High
High
Medium
Medium
Medico-legal Security and confidentiality
Risk of malpractice
Medium
Medium
Medium
Medium
Medium
Medium
Technological Limitedaccesstoequipment
Needforinteroperability
High
High
High
High
Medium
Medium
1-3YEARS 4-5YEARS 6-7YEARSCHALLENGE
TopIndustryChallengestoVisualCollaborationinHealthcare
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Conclusions Evolving patients needs, limited number of medical specialists in remote areas, and the
technological advances are some of the most important factors driving interest in visual
collaboration in healthcare. Patients are becoming keener to get faster access to
professional advice and are striving to achieve the same convenience in healthcare they
benefitfrominotherserviceindustries.
Thereareseveralissuesthatthemarketofvisualcollaborationinhealthcaremustovercome
toachieveawideradoption.Thefinancialchallengesinvolvereimbursementoffunds,issues
of how to pay doctors for longerterm care, and how tojustify use of telemedicine in
hospitalswhentheendresultwillbeacutinhospitalstays.
Additionally,on the technology side, the telemedicinewillhave tobe integratedwith the
electronicmedicalrecords,aswellassysteminteroperabilityissueswillhavetoberesolved.
Moreover,medicalstaffwillhavetobetrainedtobeabletocoordinateremotecare,and
willhavetocopewithlegalliability,accreditationandlicensingissues.
Itisafactthatinformationandcommunicationtechnologieshavetremendouspotentialfor
improving
health
care,
but
it
should
be
borne
in
mind
that
to
take
advantage
of
that
potential, adequate infrastructure is necessary. In the rural areas of many developing
countries,thelackoftheinfrastructureismoreevident.Notonlyistherenotahighrateof
broadband access; even the more basic amenities and telecommunications modalities,
includingtelephonenetworks,computersandelectricity,canbescarce.
Anotherimportantfactoristheoftendeficientandinadequatetransportationinfrastructure.
The negative consequences of these deficiencies include poorly trained personnel,
inappropriate maintenance and control systems and limited ability to gain access to
expensivetelecommunicationinfrastructure.
Visual collaboration vendors are finding that there is an opportunity for off the shelf
videoconferencingproducts
as
an
entry
point
into
the
healthcare
market.
It
is
acheaper
optionforhealthcareprofessionals,astheyarenotpurchasingdedicatedcarts,butstandard
videoconferencingsystems,whicharemorepriceeffectiveandeasiertouse.Itisafootina
door for visual collaboration manufacturers because they are not only familiarizing the
healthcare professionals with videoconferencing, but also are introducing their dedicated
pieces of equipment. Effectively, as the market becomes more commoditized and more
competitive, thedirectionthatvisualcollaborationvendorsneedtotake inordertoavoid
thiscommoditizationistoaddvalueintocertainverticalmarkets.
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Key Industry Challenges Addressed by Price Performance LeadershipThe global healthcare market is undergoing a rapid evolution, with new technologies
introduced constantly. Now, conducting a surgery remotely across countries or even
continentsisnotadreamanymore,itisarealitythankstovisualcollaborationtechnologies.
Despite rising popularity, there are several issues that the
marketof
visual
collaboration
in
healthcare
must
overcome
to
achieve a wider adoption. The financial challenges involve
reimbursementoffunds,issuesofhowtopaydoctorsforlong
term care, and how to justify the use of telemedicine in
hospitals when the end result will bea reduction in hospital
stays.
Additionally,onthetechnologyside,thetelemedicinewillhave
tobe integratedwith theelectronicmedical records,and the
issuesofneededaccessibilityandbandwidthinfrastructure,as
well as system interoperability will have to be resolved.
Moreover,medical
staff
will
have
to
be
trained
to
be
able
to
coordinate remote care, and will have to cope with legal
liability,accreditationandlicensingissues.
The lack of interoperability between some video endpoints, poor infrastructure in certain
regions in the world and a general mistrust of the technology by those who have
experiencedpreviousgenerationsofvideoconferencingandfind it isdifficulttouse,pricey,
andnotmatchingtheirneeds,alsohindersthevisualcollaborationmarket.
Insuchsituations,effectivepricingstrategiesareofparamount importance,astheybetter
positionvisualcollaborationvendorstomeetthemarketneeds.Theabilitytoprovidevisual
collaboration technologies at a lower price will likely leverage their use in providing
healthcareservices,
as
more
facilities
will
be
able
to
afford
them,
and
thus
be
more
inclined
tousethem.
About LifeSize
LifeSize is the first company todevelopanddeliverhighdefinition video communications
products. Founded in 2003 by industry veterans and headquartered in Austin, Texas,
LifeSizesawardwinningsolutionscombinesuperiorqualityofexperience,uniqueflexibility
and unmatched price performance to make communicating at a distance as natural and
effectiveasbeinginthesameroom,foranyone,anywhere.
LifeSize became a division of Logitech in December 2009, sharing a vision of everywhere
there
is
voice
there
should
be
video.
The
company
has
subsidiaries
in
Europe
and
Asia
Pacific,
andanetworkofchannelpartnersreachingmorethan80countries.
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Measurementof110(1=lowest;10=highest) AwardCriteria
Price Features EaseofUse ServiceEffectivenessProduct
MatchedtoClientNeeds WeightedRating
RelativeWeight(%) 20% 20% 20% 20% 20% 100%LifeSize 9 9 8 7 6 7.8
Competitor1 6 8 8 7 7 7.2Competitor2 6 8 8 7 7 7.2
Criterion 1: Price Competitiveness
Rising interest inhighdefinitionand immersivevisualcollaboration,aswellas themarket
consolidation, are leading to increased competition among valueadded resellers and
equipmentvendors,fuellingpricingpressure.
Toaddressthistrend,LifeSizeoffersoneofthemostpriceeffectiveproducts,whileatthe
same time providing its clients with the best performanceprice ratio. These attractively
priced solutions offer not only lowest acquisition costs, but also a low total cost of
ownership.LifeSizeproductsstartat$2,499,whichplacesthematabout1/3ofthepriceof
theircompetitorsmostcloselymatchedsolutions.
Criterion 2: FeaturesRisingcompetitioninthevisualcollaborationmarketdrivescompaniestoconstantlyfightfor
new customers by offering innovative features that will better suit their clients needs.
LifeSizeisovercomingthischallengewithprovidingHighDefinitionequipmentthatrequires
lower bandwidth than its competitors products. It is especially important in regions that
face the issues of the needed accessibility and have poorly developed bandwidth
infrastructure.FromaHDcallat1.1MBtoacrystalclear,30framespersecondcallat384KB,
LifeSizedeliversperfectwidebandaudioqualityandfullmotionvideofrom128KBup.
Oneofseveralhindering factorsthatvisualcollaboration inhealthcare isalso facing isthe
adoptionstandardsrelatedto legal,cultural,administrative, financial,andtechnical issues.
Inthe
last
case
the
most
important
is
the
issue
of
interoperability
between
other
collaboration systems and medical devices like medical scopes, cameras, mobile medical
carts,anddigitalstethoscopes.LifeSizewasabletoovercomethischallengebyallowingfora
seamless interoperability with the Avaya Aura unified communications platform. The
platform is able to reduce costs through process integration and equipment tracking,
increaseefficiencyofclinicalstaff recoupupto4hoursofadministrativetimepernurse,
andincreaserevenuewithcommunicationsenabledadmittanceanddischarge.
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Criterion 3: Ease of Use
TheLifeSize intuitive,colorcodedremotecontrolandonscreenmenuallowsnontechnical
userstousethesystemwithouttheneedforITstafftobeonassistance.Thebenefitofsuch
simple operation of LifeSize tools and its impressive priceperformance is appealing to
healthcareprofessionals.Withaccess tovisualcollaboration thesehealthcareworkerscan
reach out to patients at home and in more remote areas indirectly reducing costs of
hospitalstays
and
continue
their
medical
education
without
the
disruption
of
physically
attendingseminars.
Criterion 4: Service Support
Aswithany technologicalsolution,servicesupport isan importantaspect foranyvendor.
ThecaseisnodifferentforLifeSizeitprovidesexcellentsupporttoitsclientsviahelpdesk,
Global Deployment Program (GPS), remote installation, and extended warranty and
advancedreplacement.Theservicesupportisespeciallycriticalinhealthcareservices,where
timelytroubleshootingcansometimesmeansomeoneslife.Worthfocusingonherearethe
HelpDeskAssuranceServiceprogramandtheGlobalDeploymentProgram.
TheLifeSize
Helpdesk
Assurance
Service
program
provides
core
services
intended
to
provide
organizationswithdirectphoneandvideoaccesstoLifeSizeserviceandsolutionengineers.
LifeSizehasdevelopedanexpertiseintroubleshootinganddiagnosingtheIPandISDNbased
technologies.HelpdeskAssuranceService incombinationwithLifeSizeWarrantyAssurance
serviceprovidesaccesstothelatestsoftware,knowledgebase,softwareemailnotifications
andtheLifeSizeserviceandsupportorganization.
TheLifeSizeGlobalDeploymentProgramisdesignedtoremovethebarriersrelatedtoglobal
implementations including scheduling delays, higher product and installation costs and
excessivecoordinationefforts.Withoutthesebarriers,LifeSize solutionsaredeployed ina
timelyandeffectivemanner,enablingthecustomersimmediatereturnontheirinvestment
andachieving
productivity
benefits.
Criterion 5: Product Matched to Clients Needs
With millions of baby boomers now retiring, technology innovators are designing and
buildinganewmarket for them thatwillallow thoseseniorcitizenstocommunicatewith
healthcareprovidersand their familymembers from theirhomes.Thatcreatesaneed for
remotehealthcare oratleasttheabilitytogotoamedicalcenterthatsupportsthevisual
collaborationbetweenthemandthedoctors.
Becauseofthechallengesfromregulatoryissues,someclientsneedsremainunmet.LifeSize,
like other companies is restricted by countrylevel issues, as each country has different
policies and regulations on implementing visual collaboration in healthcare and other
sectors,and,asmentionedabove,thetechnologicalbarriercontinuestobeamajorobstacle,
asmany regions in theworldhavepoorlydeveloped infrastructure,preventingthem from
takingfulladvantagesofvisualcollaboration.
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ABOUT FROST & SULLIVAN
Based in Mountain View, California, Frost & Sullivan is a global leader in strategic growth
consulting. This white paper is part of Frost & Sullivans ongoing strategic research into the
InformationTechnology industries.Frost&Sullivanregularlypublishesstrategicanalysesofthe
majormarketsforproductsthatencompassstorage,management,andsecurityofdata.Frost&
Sullivan also provides custom growth consulting to a variety of national and international
companies.
Theinformation
presented
in
this
publication
is
based
on
research
and
interviews
conducted
solely by Frost & Sullivan and, therefore, is subject to fluctuation. Frost & Sullivan takes no
responsibility for any incorrect information supplied to us by manufacturers or end users. All
copyrightandotherproprietarynoticesmustberetained.No licensetopublish,communicate,
modify,commercializeoralterthisdocumentisgranted..
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