Revenue from digital-home health services in the U.S. will quadruple over the next five years to exceed $2.1 billion in 2010, according to a new report from Parks Associates. The two fastest growing areas, wellness monitoring services and e-health services, will both achieve a compound annual growth rate (CAGR) of over 50 percent over the next five years, while geriatric care monitoring services will achieve a CAGR of 22 percent and acute care monitoring services a CAGR of 35 percent over the same time period.
"Due to the aging population in the U.S. and the gradual change in the healthcare service model from clinical intervention to preventive care, home-based healthcare services demonstrate strong long-term growth potential," said Harry Wang, research analyst at Parks Associates.
"Delivering Quality Healthcare to the Digital Home" is less bullish on the industry's near-term growth potential, however, which is inhibited by several factors, including a lack of documentation on the clinical efficacy and financial benefits of home care services. As a result, payors in both private and government sectors are less likely now and in the next two years to proactively reimburse care providers for these types of services.
"This industry will start to grow rapidly around 2008-2010, when enough clinical data and cost-saving evidence exist to influence payors' attitudes towards home-based care services," Wang said. "Meanwhile, services that are easily comprehensible to consumers and subject to less stringent clinical standards, such as e-health services and wellness monitoring, will see faster adoption by consumers, service providers, and payors."
"Due to the aging population in the U.S. and the gradual change in the healthcare service model from clinical intervention to preventive care, home-based healthcare services demonstrate strong long-term growth potential," said Harry Wang, research analyst at Parks Associates.
"Delivering Quality Healthcare to the Digital Home" is less bullish on the industry's near-term growth potential, however, which is inhibited by several factors, including a lack of documentation on the clinical efficacy and financial benefits of home care services. As a result, payors in both private and government sectors are less likely now and in the next two years to proactively reimburse care providers for these types of services.
"This industry will start to grow rapidly around 2008-2010, when enough clinical data and cost-saving evidence exist to influence payors' attitudes towards home-based care services," Wang said. "Meanwhile, services that are easily comprehensible to consumers and subject to less stringent clinical standards, such as e-health services and wellness monitoring, will see faster adoption by consumers, service providers, and payors."