Home health monitoring adoption to rise, despite payor resistance

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The digital health industry still faces challenges in convincing private insurers to adopt home health monitoring technologies. Yet, vendors can overcome payor resistance by providing verifiable trial results and further education regarding the benefits of home health monitoring technologies, according to a new study by Parks Associates.

“With U.S. market potential of $2.5 billion in device and service revenues by 2012, the home health monitoring industry has every incentive to convince private insurers, along with other potential payers, of the technology’s value and feasibility,” said Harry Wang, senior analyst at Parks Associates, a market research firm.

The study outlines ten recommendations for vendors to strengthen home health monitoring technologies’ visibility and value proposition, including providing independently verifiable trial results, gaining recognition from the medical community, and presenting a practical plan that will prevent over-utilization of the technology.

“While meeting private payors’ requirements—like providing a drilled-down explanation about the operational details on how the technology is used by consumers and caregivers—is important, the technology industry must also rally support from consumers, caregivers and employers—many self-insured—to influence private insurers’ perception and the technology review process,” said Wang, who believes efforts from industry organizations like Continua Health Alliance, American Telemedicine Association, the Patient-Centered Primary Care Collaborative and Technology CEO Council, are significant starts.