GreatCall enlarges remote monitoring profile with Healthsense acquisition (US) (Updated)

Updated. GreatCall, the older adult-targeted mobile phone/PERS company, on 20 December announced the acquisition of telecare/RPM developer Healthsense. Terms were not disclosed. Healthsense was one of the earliest developers (close after Living Independently Group’s, now Intel Care Innovations’, QuietCare) of a sensor-based residential system, eNeighbor, to monitor ADLs for activity and safety. It has been primarily marketed to senior living communities after an early start in home sales, and currently monitors 20,000 lives according to the press release. Healthsense acquired a similar system, WellAWARE, in 2013.

GreatCall is best known for its older adult-targeted mobile phone line, but in recent years they have expanded into mPERS services on phone and devices, including an emergency call center. The San Diego-based company acquired the remnants of the Lively in-home monitoring system a year ago and incorporated its watch-wearables into its medical alert product line.

This Editor speculates that one direction GreatCall may take is to expand into the senior community monitoring and home care business beyond mPERS. To date, GreatCall has been a highly successful, direct-to-consumer driven company which has popularized not only products to make technology simpler and more usable for older adults, but also led in a non-condescending approach to them. If the company decides to enter senior housing and home care, it presents a different and new marketing challenge, as both have been to date late technology adopters. Another concern is the cost/financial model, usability and reliability of Healthsense’s remote monitoring system.

The other direction is more conventional–GreatCall could incorporate the Healthsense technology and ADL algorithms into home monitoring, with a design resembling Lively’s original self-installed, attractively designed in-home telecare system.

Minnesota-based Healthsense in 15 years of operation raised what some would term a paltry $46 million of equity and debt financing in ten rounds (Crunchbase). Over this time, Healthsense’s investors were a small group, including New York-based Radius Ventures, Mansa Capital, West Health and Fallon Community Health Plan. After the $10 million venture round in 2014, the last investment was a small $2.6 million in February. Early investor Ziegler HealthVest Management, which purchased a significant interest in 2007, is not listed in Crunchbase’s roster, though one of their senior financial managers is on their board. This Editor senses (sic) that the investors were seeking to exit after a long time in.

The release has a summary of an earlier Healthsense study of interest to marketers of telehealth and telecare as a reference:

An independent 12-month study with Fallon Health (an investor–Ed.) found that using Healthsense remote monitoring in connection with Fallon’s model of care for seniors reduced total medical expenses by $687 per member per month — a nearly 16 percent reduction for pilot members as compared to a control group. The Fallon population using Healthsense demonstrated a 32.2 percent reduction in fees for inpatient hospital visits, a 39.4 percent reduction in emergency department costs and a 67.7 percent reduction in expenses for long term care vs. the control during the year-long study.

More in Mobihealthnews, MedCityNews, Minneapolis-St Paul Business Journal

(Updated with further information on early investor Ziegler and the senior housing market; hat tip to reader Andrea Swayne)

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