the outlook for telehealth and csp early movers

The Outlook For Telehealth And CSP Early Movers

© Analysys Mason Limited 2015

IIC Singapore – TRPC Forum Smart Health, IoT and the Empowerment of Patients

24 November 2015

Sherrie Huang

Research Programme Head, Asia Pacific [email protected]

The Outlook For Telehealth And

CSP Early Movers

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Changes:

• Governments and healthcare stakeholders are introducing value-based models:

Evidence/Performance-based; New way to reimburse healthcare providers.

Goals:

• Manage the rising cost of healthcare provision

• Address the increasing prevalence of chronic disease

• Provide better-quality services to patients.

Ageing populations

↑ Chronic diseases

↑Pressure

on healthcare resources

2

The healthcare sector is being forced to change, leading to

new opportunities underpinned by telehealth applications



Figure: Converging telehealth application groups

3

Telehealth solutions will play an

important role to address the

challenges:

• Assisted living solutions can address

some of the needs of an ageing

population.

• Remote patient monitoring (RPM) and

telemedicine facilitate remote

monitoring or provide non-urgent

medical advice to relieve the burden on

traditional resources.

• Wellness platforms (health apps,

wearables) monitor consumer health.

The four application groups are slowly converging to provide

health monitoring and disease prevention to solve the issues

Source: Analysys Mason

Disease and

Health

Management

REMOTE PATIENT

MONITORING TELEMEDICINE

WELLNESS

ASSISTED

LIVING



Survey results: Good penetration levels of apps + ~60% of people

pay for their own healthcare insurance Strong potential

Figure: Respondents with medical insurance, and insurance

payment bearers [Source: Analysys Mason, 2015]

Figure: Respondents who use healthcare or fitness apps, by

country [Source: Analysys Mason, 2015]

0%

10%

20%

30%

40%

50%

60%

South Korea Malaysia Indonesia

Pe

rcen

tage

of

resp

on

de

nts

Fitness (steps, heart rate) Nutrition (diet, calories)

Wellness (sleep, posture) Medical reference

Medical condition management Use some fitness/health app

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Indonesia Malaysia South Korea

Pe

rce

nta

ge

of

resp

on

de

nts

Yes, I pay Yes, family pays

No, I pay when needed Yes, employer pays

Yes, someone else pays No, healthcare is free

No, for another reason Unsure

4

Q: “Do you have private healthcare

cover/insurance?”; n = 3000.

Q: “If you use health or fitness apps on your mobile phone,

what do those apps track? (select all that apply)”; n = 3000



Figure: Telehealth market KPIs, worldwide, 2020, and

selected growth rates, 2013–2020

5

Telehealth connections and revenue

will grow during the forecast period but

will not be a large market in 2020.

• Assisted living, Remote patient monitoring

(RPM) and telemedicine often require

different technologies and adopt different

business models.

• RPM and assisted living may generate

connectivity revenue but most of the value is

found higher up the value chain.

• Standalone telemedicine services generate

revenue through subscription and ‘visit’ fees.

• Few holistic services are available.

Note: We do not provide forecasts for the size of the wellness

market. We will track the market and progress in corporate

wellness plans, and may size the market in the future.

Forecast: The telehealth market will grow significantly from a

very small base, but the overall opportunity will be small

15M 30%

Assisted living (personal emergency response systems

(PERS) and mobile PERS (mPERS))

Remote Patient Monitoring (RPM)

Telemedicine

Subscribers

13M

Connections

50%

Mobile share

17M 1.3bn

Subscribers Subscriber service

revenue (USD)

Mobile share

3.4bn Service

revenue (USD)

6.8bn Connectivity and application (USD)

CAGR 22%

CAGR 50%

CAGR 36%




Figure: Distribution of initiatives [Source: Analysys Mason DERI Tracker]

Mobile health

Mobile financial services

Mobile education

Smart homes

Mobile commerce and advertising

Cloud-based services

Mobile agriculture

Mobile identity and security

Venture capital – accelerator

Key:

18%

20%

8%

2%

15%

24%

4% 9%

APAC:116

initiatives

Cloud-based

services

Mobile financial

services

Mobile health

Mobile commerce

and advertising

Digital Economy Readiness Index (DERI): Mobile healthcare is

one of the key focuses of the CSP initiatives in Asia-Pacific

Asia–Pacific

6

http://www.analysysmason.com/Research/Content/Data-set/digital-economy-readiness-index-RDMY0/#28%20February%202015

http://www.analysysmason.com/Research/Content/Data-set/digital-economy-readiness-index-RDMY0/#28%20February%202015



Figure: CSP roles in the telehealth market value chain

7

Telehealth represents an interesting long-

term opportunity for CSPs willing to commit

resources over the long term.

• CSPs need to address national market

requirements with regard to policy and demand.

• Telehealth services are complex:

• Address disparate stakeholders

• Require different technologies

• Synergies are not always clear.

• The role of the CSP in the value chain is unclear.

• Moving up the value chain will be challenging.

• Telehealth will remain a small opportunity for

CSPs during the next 5 years.

CSPs entering the telehealth market must be prepared to

make significant investment and take a long-term view

Enabler

Platform

Healthcare

provider


Connectivity



Lack of scale

Funding and reimbursement

Regulation

Figure: Barriers to adoption and growth in the telehealth market

8

CSPs may identify some

near-term opportunities in

connectivity provision…

…but these will be low

value and subject to

intense competition.

These issues will only be

resolved in the long term.

The telehealth market has persistent barriers to entry, which

will only be resolved in the long term


Long lead times for medical device certification

Stringent data protection laws

Lack of clarity on new delivery models

Funding mechanisms for new delivery models not

always in place

Insufficient proof points in the market

Fragmented demand-side dynamics in healthcare

Lack of interoperability and standards between

health IT solutions



Case study 1: The M2M end-to-end patient monitoring

solution of a leading CSP in Malaysia

Server and

3G gateway

hardware

Connectivity

Management

Platform

Bluetooth

enabled patient

device

Patient

monitoring

application

Mobile M2M

service for

connectivity

‘Off the shelf’ end-to-end patient monitoring solution

9



Case study 2: The mobile healthcare service of a India leading

CSP addresses the unserved need and brings differentiation

Figure: Number of initiatives and average readiness score, by

vertical [Source: Analysys Mason, DERI]

0

5

10

15

20

25

30

35

40

45

0 1 2 3 4

Ave

rag

e r

ea

din

ess s

co

re

Number of initiatives

Mobile Commerce and Advertising

Mobile Education

Mobile Health

Mobile Fincancial Services Cloud-based

Services

10

• mHealth SMS alert packs Low

income: Make health information readily

available to the large segments of the

population in India which do not have

access to the Internet.

• Mediphone Mid-high income:

Exclusive to Airtel mobile subscribers.

The service is powered by a clinical

decision support solution from Medibank

Health Solutions, and is staffed by

accredited nurses and doctors.

Mobile Health service of a

leading CSP (India)

Mediphone brings the much

needed differentiation


© Analysys Mason Limited 2015 11

Key Takeaways

Health industry is being forced to change:

Ageing populations and the prevalence of chronic diseases are putting increasing pressure on healthcare resources.

Mobile health has good potential in Asia Pacific:

Consumer survey shows high app penetration and high incentive for health monitoring and management.

Telehealth is estimated to have strong growth globally:

But it’s complexed and it will remain a small opportunity for CSPs during the next 5 years.

Healthcare is the #3 market that APAC CSPs invest in:

Challenges: No significant returns in the near term; ; Positioning; Difficulty to move up the value chain; high investment and risk…



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12

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Contact details

13

Sherrie Huang

Research Programme Head

Asia Pacific

[email protected] Boston

Tel: +1 202 331 3080

Fax: +1 202 331 3083

[email protected]

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Sherrie Xiaoyu HUANG

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