Wellness Oasis: Transforming the Medical Home
Introduction
With more companies designing devices and implementing programs for remote patient monitoring (RPM), reimbursement is one of the challenges these companies have to face. The good news is that both Centers for Medicare and Medicaid Services (CMS) and private payers are allocating more attention to companies involved in home care and RPM, which ultimately translates into increased care for patients and lower costs for the healthcare industry.
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Home care and remote patient monitoring
RPM is a sub-category of Telehealth that manages patients’ health data from electronic devices. This data is collected, transmitted, evaluated, and communicated to a healthcare professional in real-time with the help of healthcare technology.
Remote patient monitoring is also a set of activities that meets the following criteria:?
Wearable technology is gaining ground in RPM
Health wearable technology refers to electronic devices that patients can wear: smartwatches, wearable sensors, Fitbits, handheld instruments, or implanted equipment. These wearables collect data about the patient’s health and exercise and promote behavioral changes that lead to a decrease in first-time visits and readmissions to the hospital caused by improper management of personal health. The increased use of health wearables is influencing the decisions of insurers, HCPs, and employers.?
By covering wearables, insurers can reduce the cost per patient as the customer's life value increases. For HCPs, monitoring patients’ health remotely, with the help of devices these patients wear, means more than diminishing the risks associated, with the COVID environment, with in-person visits. It allows them to make recommendations or prescribe treatments and prescriptions from any corner of the world.?
Companies are aware that it’s important to provide their employees with risk-free, remote solutions to manage their health as a healthier corporate culture improves staff turnover.
What payers are willing to reimburse
The increased demand in recent years for virtual care has prompted the Centers for Medicare and Medicaid Services (CMS) to extend reimbursement for RPM to support providers.
Amid the COVID-19 pandemic, Medicare coverage has been expanded to cover remote patient monitoring for patients with?acute conditions ?and?new patients as well as existing patients . Little by little, payers have shifted their attention toward home care devices, which can decrease the demand for healthcare services.?
For four years, the US Veterans Health Administration has conducted a large-scale study regarding the use of home care devices. The study, which included 30,000 participants, proved that the use of home monitoring devices has decreased the number of visits to ERs, diminished the number of hospitalization days and readmissions, and reduced mortality.
Payers will be interested in reimbursing the cost of these devices, which is a lot lower compared to the costs of hospitalizations or expensive treatments.
Another element that needs to be taken into consideration is the proof that supports the efficiency of these devices. In a relatively new and fragmented market, providing this type of proof is difficult. Difficult, yet not impossible. That is why having studies to support the claims made by home care devices helps gain payers’ attention and of course, reimbursement.?
Creating reusable or disposable devices at lower costs is also a proper strategy to attract reimbursement, especially if it’s needed to meet a specific timeline or a regulatory requirement.?
Partnerships between home care device designers and healthcare professionals can provide payers with insights regarding the medical response of these devices to high amounts of data. This is also a potentially successful strategy for home care companies to be reimbursed for their products.
How to create devices that will be reimbursed by payers
Make them user-friendly
Patients and HCPs are already accustomed to devices with intuitive technologies, that are easy to use, and that meet their needs. They expect nothing less from home care devices and that is a critical point that manufacturers can turn into an advantage. Equipping regular consumer electronics with home care monitoring functions is also a winning bet. Smartwatches or wrist bracelets that can measure ECGs, for example, are already part of the RPM reality.?
Philips for example has created a wearable biosensor in the form of a patch that can collect data regarding temperature, movement, heart rate, and respiratory conditions. Those who wear it can move freely whilst this data is collected.?
Know your target clients
When we say “smart devices”, we expect tech-savvy millennials to be the pioneers in embracing them. Yet, the senior citizens are the target segment taken into consideration by designers when creating, testing, and integrating devices for home care.?
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With more than 700 million people in 2019 age 65 or older and estimations that this number will double by 2050, creating home care devices suitable for them is a strategy that will pay off. Life span has increased in the past decades. Often affected by frailty, senior citizens need support and assistance in managing their health and having satisfactory life conditions. Many senior citizens affected by reduced cognitive or motor functions or even infirmity or illness are transferred to various retirement homes, depending on the type of care they need. Several surveys have indicated, however, that senior citizens’ transfer to such retirement facilities has been associated with anxiety, insomnia, or depression.?
The same studies have concluded that seniors want to remain in their homes with independence for as long as they can. By designing trackers, cameras, sensors, or any other in-home devices, adjusted to senior citizens’ needs, companies make it possible for elderly people to age in the comfort and safety of their own homes. These devices also enable cost savings for the healthcare system. This is one of the main criteria payers are looking at when it comes to reimbursement. These savings originate from fewer hospitalizations, reduced number of first-time visits to ERs, re-admittance to hospitals, or even expenses on medication.?
Create solutions for important problems
It is estimated that technology can save between $100 and $300 billion in healthcare from proper administration of medication. That is the cost that the healthcare system must support from people who do not take their medications as prescribed. But this goes beyond cost: medication non-adherence can result in 100,000 deaths every year , deaths that can be prevented with the help of smart home care devices.?
“Smart” pill bottles that light up, scheduled text messages, or even devices connected to the internet are just a few examples of how home care companies remind their clients it’s time for their scheduled medication and how they prevent them from getting (more) sick.?
Put the right people on the right tasks
In many cases, there are not enough physicians to monitor health data received from various home care devices, which could make collecting this data an expensive process that is wasted. However, inventive companies have figured out that the key is not to place all the responsibility in the hands of physicians, who are often focused on other tasks, but to identify and use the proper support based on the RPM’s specifics. For example, pharmacists can be enrolled in monitoring programs.?
Specifically, with the help of a digital program, pharmacists have monitored the blood pressure of 6,000 patients at high risk . Following up with these patients by text messages or e-mail resulted in a high number of patients reaching their blood pressure targets. It’s important to have the right professionals in key roles so that complex tasks can deliver outcomes that can be later used as proof of home care devices, services, or projects’ efficiency, especially in negotiations with payers.
Design devices that blend into homes
Devices with designs that fit into homes are equipped with features that monitor, collect, and transmit users’ data to medical professionals. Devices that look like printing cylinders measure important indicators in just a few minutes such as the number of lymphocytes, white blood cells, or neutrophils from a drop of blood placed on special test strips. The science behind this type of device is a valid argument for reimbursement and hence a successful approach for companies who want to create similar devices.?
Others – like the smart toilet seat – focus on more specific health areas, such as cardio activity. The smart toilet seat monitors cardio health with a photoplethysmograph, an electrocardiogram, and a ballistocardiogram. Data like blood pressure, blood oxygenation levels, and heart rate are collected after just 90 seconds of skin contact. A report is sent to a cardiologist who determines if intervention is required. The best thing about this device is that it doesn’t require any behavioral change since it is part of regular habits and its cost will be significantly lower compared to a heart-monitor implant.
Smart mattresses are another example of objects that blend into homes and that collect data regarding respiration, the quality of sleep, and heart rate without any effort from these devices’ users.???
Medical devices that blend into homes will represent a first choice for many patients, especially since they don’t require home re-decorations, behavioral changes, or additional expenses. And once these devices are on a high trend of demand, payers will want to reimburse them.?
User behavior is the key
Knowing the behavior of target clients is crucial in the high-competitive market of medical devices. Users’ feedback has become so important in designing new products and in improving existing features that many home care companies have built it into their business models.
Several home care companies use their customer service centers (rather than outsourced centers) to communicate with their clients, assist them in fixing bugs, improve their user experience, and adjust the devices’ settings to better meet users’ behavior and needs.?
Conclusion:
Home care has been a promising trend in the healthcare industry and has accelerated with the COVID-19 pandemic for the design, testing, implementation, and integration of home care devices. These benefits include improved diagnosis and treatments, healthcare cost savings, remote monitoring of chronic diseases, and improved care for patients anywhere. Home care will deliver innovative products that will ultimately provide advantages to all stakeholders in the healthcare industry.?
Co-founder at Atta Systems & Medicai | VC-backed | Innovation through technology in healthcare
7 个月Liz, appreciate you sharing this.