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Smart Payment Strategies Enable Growth in Home Health Care and Disease Management Markets for Remote Patient Monitoring, Finds Frost & Sullivan
Date:8/14/2009

revolution in the healthcare segment with the focus intensifying on preventative healthcare, and self monitoring is an important facet of preventative health," says Frost & Sullivan Industry Analyst Zachary Bujnoch. "Easy-to-use informative devices, including blood pressure monitors, will benefit from this long term change."

As the number of patients afflicted with CD, diabetes, asthma, obesity, and other conditions increase, healthcare providers rely heavily on remote patient monitoring. In response, technology advances at a rapid pace in the home and health care and disease management market segments. Adopting the trial-and-error method, market participants become increasingly adept at providing quality products and services. Participants also portray their services in a better light by unleashing competitive strategies. To promote customer satisfaction, vendors will continue to leverage advancements in technology to establish a firm foothold in this domain.

The lack of policy support in the form of direct reimbursement severely reigns in this promising market; without the guarantee of direct reimbursement, the cost saving capability of these services remains questionable.

"At present, it seems very unlikely that any significant progress will be made toward direct reimbursement in the next two to five years," observes Bujnoch. "As a result, market participants are forced to seek alternative payment strategies, and while some of these have proved successful, the huge billion dollar market potential this space possesses is unlikely to be reached without some form of direct reimbursement."

Innovative payment strategies adopted for the time being include pay for performance methods, episode care models, and grants in the form of individual state Medicaid sponsored programs.

Competition in this market expects to intensify greatly over the next couple of years, an
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SOURCE Frost & Sullivan
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