The more innovation there is, the more some things don’t change. Stroll through this Aging 2.0 Summit link – and you will see pages of logos of new, newer, and newest companies trying to make a technology or product that could be used to serve seniors – or perhaps help those who serve them. Or the AARP Health50 Live Pitch, or the Stanford Longevity Design Challenge or the Quintiles competition at Wake Forest in North Carolina. Yet again and again, the question bubbles up – can firms make money creating and selling technology or other innovations specifically designed for seniors?
Everybody off the bus -- the last convention for AARP. Last week’s Life@50+ National Event in Miami was reportedly the last time AARP will produce one of these national entertainment-filled conventions with speakers and tracks for all interests and crowds of boomer-and-beyond women (mostly, based on observation) -- volunteering to pack lunches, climbing onto buses, and basking in the Florida sunshine. The health-focused startup Live Pitch event on Thursday heard 4 minutes from the 10 finalists, 2 minutes from five Florida-based startups, and short 1-minute pitches from alternates from each of those. Judges selected Splitsecnd, a portable device-plus-service for automatic vehicle crash tracking (similar to GM's profitable OnStar, but currently vehicle brand-independent). The audience voted for Audicus (for buying lower-priced hearing aids online) and Constant Therapy (a mobile solution to help patients improve brain function after stroke or brain injury.)
In tackling aging with tech -- interesting few weeks. Sometimes odd things happen in sequences that beg a backward search for meaning. So let’s recap: within the past three weeks, Silicon Valley VCs invested in a presumably tech-enabled home care agency, Apple and IBM coughed up 5 million iPads for Japanese seniors (to “tackle aging”), and the US Senate held a hearing on the benefits of technology for those aging at home. Some might see these three disparate events, when viewed together, as a trend that shows how tech, big companies, and public policy are all coming together in an age-related trifecta of tech transformation. Whew!
Are ‘drop-in chefs’ an alternative to assisted living? Some headline writers saw an opportunity – and some ran with the title even though the original NPR story stepped back a bit and said ‘help seniors stay in their own homes.’ You probably have heard that cost-sharing is an alternative to assisted living. Or sharing your home with roommates through Room2Care, with the founder wisely observing “Not everyone needs to be in assisted living.” Or let’s take Granny Pods – are they an alternative to assisted living? Remember these – prefab back yard cottages fit up with computers to provide medication reminders? Or maybe Information Week’s Eight Technologies provide an alternative to assisted living -- the article said ‘changing home health care,’ but web designers know SEO and threw in 'assisted living.'
Competitions abound – all need groundwork. Just a few years ago you might have noticed that there were few business plan competitions for products and services targeting the older adult market (the Silicon Valley Boomer Venture Summit begun by Mary Furlong in 2004 was a rare exception.) When its Letter of Intent page appeared at the end of 2011, CMS innovation grant applications included technology submissions behind the scenes, in partnership with non-profits and healthcare delivery organizations. Then came the $1 billion round two announced in December 2014 – and with that, multiple other tech solutions were included to help deliver significant changes, including health information exchanges, patient engagement, the emerging field of population health, and today’s CMS reimbursement for telehealth. With these approvals, CMS effectively laid the groundwork for many of the firms that compete today in health segments.
Does the opportunity with home care rest in its technology? Some Silicon Valley fellows think that it is does, and with a cool $20 million raised, they are launching Honor. What is this oddly named thing? What they've said: it's an in-home care agency that will have a smartphone app for the adult child plus a tablet in the care recipient’s home to say "what time the aide is arriving." Oh, and it seems likely they will have home care aides who are paid better wages, at least in the SF area, where the 'earth revolves around San Jose' – no kidding, that heading is from the San Jose paper. Oh, and did I forget to mention that they will manage a process to help families hire home care aides?
Tech companies want consumers who can be herded forward. There was the magic of the iPhone 6 and the 6-plus. By the time those came out, the old iPhones were tired, maybe too slow -- Apple fans were eager, if not desperate for a better device. Then not so long after Samsung introduced its Galaxy S4 in May 2013, it announced the S5 in February 2014. The Samsung Galaxy S6 and the Galaxy Edge (and their updates) showed up this week -- hustled out the door to keep pace with media mega-hype of the Apple Watch. How wonderful and different are the new Samsung gadgets from the S3 and S5? Wait for it – startup with a finger swipe, a curved edge and again imitating Apple… no removable batteries. Oh, so the new phones have a 12-hour battery life? Well, you can charge the phone within 15 minutes to get 4 hours of life out of it? Not so good when the day is long.
These are tech transition times for everyone – including seniors and their devices. In case you didn’t see it, the Pew numbers about smartphone use are out – 27% of the 65+ have smartphones, up from 19% last year. Given the date of that data (from last fall), let’s just assume that this number is actually lower than today's reality. So why should a PERS reseller or manufacturer care? First because carriers don’t want to sell feature/clamshell phones any more. They make it difficult to even find them. They are selling smartphones to people who don’t want or use all of the features they have, but they’re buying them anyway because that is what they’re being sold. In retrospect, Philips Lifeline might have seen the near term PERS future – and it could be a smartphone – and thus an app. And thus -- why have more than one device? And why not pair a tiny pendant or clip to a smartphone? Or make a watch?
Times change, so do phones. One year ago according to the latest from Pew, 18% of the 65+ had a smartphone – today, 27% have them. Why? Well, for one thing, when a phone breaks, smartphones are easy to find in the store as directed by a rep and online, while ‘basic’ phones (Verizon has 6 unique basic phones) are buried under pre-paid plans. AT&T's two unique brands are very difficult to find, with a handful of non-contract Go Phones – found online after wading through a gazillion smartphone choices. Also, 41% of people aged 65-69 are smartphone owners, perhaps side effects of working longer, greater longevity, families with pics, videos, and chats that must be seen NOW. But still, more than 70% of the 41 million 65+ still do not have smartphones. This likely isn’t because of the cost of the plans (43% of smartphone owners pay between $50 and $100) – only 10% of the 65+ are statistically classified as living in poverty.
