Revenues from Digital Home Health Services to Top $2.1 Billion in 2010

Parks: Fastest Growth Areas are Wellness Monitoring and e-Health Services. Revenue from digital-home health services in the U.S. will quadruple over the next five years to exceed $2.1 billion in 2010 . The two fastest growing areas, wellness monitoring services and e-health services, will both achieve a compound annual growth rate (CAGR) of over 50% over the next five years, while geriatric care monitoring services will achieve a CAGR of 22% and acute care monitoring services a CAGR of 35% 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.

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. 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.

For additional information on Delivering Quality Healthcare to the Digital Home , Bundled Services & Residential Gateways: 2005, Publ 20060302