Aging in place in the U.S.

AGING IN PLACE: FOCUS ON THE U.S.MARKET
Prepared by Helene Andre, Market Research Analyst & Luka Grujic, Strategy Manager - Healthcare
For French Tech Hub
March 2016

ACCELERATING GROWTH FOR FRENCH TECH COMPANIES IN THE U.S. 2
Copyright © 2015. All Rights Reserved
The aging population is expected to sky rocket in the next decade and the United States has to rethink how it
will deliver care for its elderly.
With recent advancements in technology, Aging in Place has emerged as strong solution to address this
pressing need.
In this presentation, French Tech Hub explores the dynamics of the U.S. aging population and gives an
overview of the solutions that are being developed for Aging in Place.
I. Current challenges with the aging population
II. Opportunity for Aging in Place
AGENDA

The US population age 65+ was 44.7M in 2013 and represented 14.1% of the U.S. population. It is expected
to grow to 21.7% of the population by 2040.
By 2060, there will be about 98 million elderly.
IN THE COMING YEARS, THE US ELDERLY POPULATION WILL SURPASS THE
YOUNG POPULATION IN MAJORITY
2015 2040 2060
Baby Boomers
Baby Boomers Baby Boomers
Source: AARP 2015

1 in 4 elderly Americans live in one of three states:
California, Florida, and New York.
Illinois, Michigan, New Jersey, Ohio, Pennsylvania, and
Texas —account for another one-quarter of Americans
age 65 or older
80+ senior facilities are concentrated in Florida counties.
• Marion County, FL, which has 22,000 people age 80
or older, is home to The Villages, an entire city built
up around retirees.
• Palm Beach County has 89 home health agencies, 3
senior centers, and many in-home care providers
Louisville, Kentucky is a very big player in long-term
care, being one of the "headquarters in nursing home,
rehabilitation, assisted living and home health
administration”.
.
SOME KEY LOCATIONS IN THE U.S. WHERE THE ELDERLY LIVE
Source: FTH analysis

THE CURRENT CARE SYSTEM WILL NOT BE ABLE TO SUSTAIN THIS INCREASE DUE
TO 3 KEY PROBLEMS 1) COST 2) ACCESS 3) DISCONNECT
Being old is expensive
• For the government through the healthcare programs of Medicare and Medicaid
• 94% of people aged 65+ paid for a portion of their health care out of pocket.
The existing settings will not be able to absorb the increasing number of seniors
and there will be a lack of care givers available
89% of seniors wish to remain in their homes for as long as possible with the key
reason being able to live under one’s own rules.
COST
ACCESS
DISCONNECT

Baby boomers are reaching closer to retirement and will put a huge burden on the cost of health care.
Medicare will drive costs from 2016-2023, with an average annual increase of 7.3 %.
For this reason, the government is pushing for action to :
1. Develop in home health products
2. Increase patient compliance
3. Improve disease prevention measures
THE RETIREMENT OF THE BABY BOOMER GENERATION IS DRIVING COSTS FOR
MEDICARE AND MEDICAID TO UNPRECEDENTED LEVELS
COST
Source: PBS 2014

Americans rely a lot on family caregivers.
In 2015, around 43.5 million families provided care for an
older relative, and 14.9 million for a relative with
Alzheimer’s or dementia.
Given the future population changes, the caregiver support
ratio will decline from its 2010 level of 7 potential caregivers
for each person aged 80+ down to a ratio of 4:1 in 2030 and
3:1 in 2050
Caregiver support ratio (CSR) – "the number of potential family
caregivers aged 45-64 for each person aged 80+"
WITHIN THE NEXT 15 YEARS, THE US WILL FACE A SIGNIFICANT LACK OF
CAREGIVERS FOR ITS ELDERLY POPULATION
ACCESS
Source: AARP, 2013

THE 5 MAIN CARE SETTINGS FOR THE AGING POPULATION ARE EXPENSIVE AND
LIMITED IN CAPACITY
Independent Living
Community
Assisted Living
Facility
Residential Care
Facility
Continuing Care
Communities
Nursing
Homes
245,000 units
$1500-$3500 /month.
Largest single provider:
Holiday Retirement with
40,440 units in 315 retirement
communities
Independent living
communities are for aging
individuals who are active and
want full control over all
aspects of life
1,233,690 units in
31,100 facilities
$2500-$4000 /month
From 2007 to 2010, supply
has increased almost 18 %
Assisted living facilities are
for aging individuals who
value independence but may
need minimum help for their
daily living
851,400 units in
22,200 facilities
$3,500-$4,500 /month
Proportion of residential care
communities with for-profit
ownership: 78.4%
Residential care facilities
are for aging individuals that
require assistance with
personal care or medical
needs
570,000 units in
1,900 communities
Entrance fee $20,000-$1M
then $500-$5,000 /month
Continuing care retirement
communities are multi tier
campus’ that offer all the
services of care under one
roof
1.7 Million units
in 15,700 nursing homes
$4,000-$8,000 /month
Proportion of nursing homes
with for-profit ownership:
68.2%
Nursing homes are for aging
individuals that require
serious health assistance with
personal care or medical
needs
ACCESS
Source: AARP, 2012 ; Center for Disease Control & Prevention, 2012 ; Leading Age 2011; FTH analysis

I. Current challenges with the aging population
II. Opportunity for Aging in Place
AGENDA

Aging in place
“The ability to live in one's own home and community safely, independently, and comfortably, regardless of
age, income, or ability level.“
Centers for Disease Control and Prevention
Assistive domotics or internet of caring things are home automation technologies that focus on making it
possible for older adults and people with disabilities to remain at home, safe, and comfortable. This field
uses much of the same technologies as home automation for security, entertainment, and energy
conservation.
“Assistive technology for aging in place is expected to grow from $2 billion today to more than $20 billion
by 2020.”
RECENT ADVANCEMENTS IN TECHNOLOGY ARE MAKING AGING IN PLACE MORE
AFFORDABLE & ACCESSIBLE
Source: AARP 2015, Infinaims 2016, Aging In Place Technology Watch 2012

At an individual level, aging in place (even when including remodeling costs) is significantly less expensive
than senior care facilities that includes recurring annual fees.
At a federal level, aging in place allows savings for both Medicaid and Medicare enabling savings of $45K
annually per participant, or $2-$3 Billion total annually (low estimate).
AGING IN PLACE IS A MORE ECONOMIC SOLUTION AT BOTH THE INDIVIDUAL
AND FEDERAL LEVEL
Aging in Place
Independent Living
Communities
Assisted
Living Facility
Residential
Care Facility
Continuing Care
Communities
Nursing
Homes
Individual
Cost
$ 70K-100K
One time
$ 180K-420K
for 10 years
$ 300K-480K
for 10 years
$ 420K-540K
for 10 years
$ 480K-960K
for 10 years
$ 80K-1.6M
for 10 years
Source: U.S. Department of Housing and Urban Development 2013 ; French Tech Hub analysis

AGING IN PLACE BENEFITS FROM THE TECH ADVANCEMENTS IN BOTH SMART
HOME AND DIGITAL HEALTH MARKETS/SEGMENTS
Telemedicine
to transmit key information to HCP
Communications
to contact loved ones
Security
To detect unusual behaviors
& activities
Safety
To detect falls & shocks
Lighting
To adapt lighting to user’s
path & activities
Communications
to contact emergency services
Quantified self
to keep track of daily activities
Wearables
to collect data from users
Remote monitoring
to check adherence to a medication regimen
AGING IN PLACE
Digital HealthSmart Home
“Home is the fastest growing setting for healthcare”
Rick Valencia, Sr. Vice President Qualcomm & General Manager, Qualcomm Life

AGING IN PLACE HAS BOTH PRIVATE & PUBLIC AND FOR PROFIT & NON PROFIT
STAKEHOLDERS THAT COMPANIES NEED TO BE AWARE OF
Government
SENIOR CITIZENS AND THEIR FAMILIES
45M PEOPLE Associations/Non
Profit
Senior Care
Settings
Independent Living
Community
Assisted Living
Facility
Residential
Care Facility
Continuing Care
Communities
Nursing Homes
Health Care Providers
Nurses
Hospitals
Clinicians
Solution Providers

AGING IN PLACE IS COMPRISED OF SEGMENTS THAT ARE SCATTERED WITH BOTH
INCUMBENTS AND YOUNG STARTUPS
Smart Home & Home Safety Health Care

THE MOST ACTIVE IOT INVESTORS 2010-2015 by CB Insights

FUNDING CAN BE FOUND FROM ANGELS, VENTURE CAPITAL, CORPORATE
VENTURE, AND CROWDFUNDING
Business Angels & VCs
Shasta Ventures: Nest
Cota Capital: Canary, Luna
Generator Ventures is a stage
agnostic investment fund focused on
aging and long-term care
Link-age Ventures: $27M fund
dedicated to seniors
Crowdfunding & Others
AARP launched a $40 million fund to
develop technology for seniors
CVCs
Samsung Ventures invests in digital
health and smart home; 2 dedicated
funds: Samsung Catalyst fund
($100M) and Digital Health Challenge
($50M)
Intel and General Electric formed a
joint venture in 2011 to transform the
way that health care is delivered at
home

HOW TO CONTACT US
ACCELERATING GROWTH FOR FRENCH TECH COMPANIES IN THE U.S.
Boston
50 Milk Street, 16th Floor
Boston, MA 02109
San Francisco
2415 Third Street, Suite 231
San Francisco, CA 94107
Marie Buhot-Launay, Sales and Marketing Director
Marie.buhotlaunay@frenchtechhub.com
@frenchtechhub
www.frenchtechhub.com
French Tech Hub supports companies with
a solid ability to succeed on the US market.
We assess elements such as quality,
disruptive character of the innovation,
overall market potential, team agility and
ambition, and financial capacity.
If you think you are a good fit, tell us about
your project:
http://frenchtechhub.com/questionnaire/

Aging in place in the U.S.

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