An ‘insider’ point of view on the Connect America acquisition of Philips Lifeline

This Editor, through a search initiated due to reader Adrian Scaife’s comment on the article below, happened on a back article from a news source on the Connect America acquisition of Philips Lifeline. Who knew (as they say) that there was a newsletter solely devoted to the PERS business? The article was written from a real insider point of view with a complete background on Connect America, Lifeline, and also why Philips put Lifeline up for sale.

  • It’s likely that Philips bought high and sold low. In 2006, Philips purchased Lifeline for a reported $750 million, then HealthWatch for an additional $130 million. At the time of the announcement, PE Hub put the value of the company in the $200-400 million range. It’s understandable that with the rise of smartphones and mobile, wrist-worn band-type PERS, the value of what is largely a traditional PERS company would suffer, but the best case is a 60 percent loss over 14 years.
  • The industry believes that Philips mismanaged the company. Example: dealers did not have 4G/LTE cellular equipment to replace the 3G in the field. The phrases ‘a mess’ for the organization and ‘run the Lifeline name into the ground’ aren’t used lightly.
  • For the past few years, Lifeline has been in the shadow of Philips’ other clinically-oriented healthcare systems. As this Editor noted, Philips has divested or spun off multiple businesses in North America.
  • Philips ran the business without understanding its unique dynamics, including dealer networks and a B2B +B2C market of home health agencies and senior housing combined with direct-to-consumer sales. They focused on the latter and kept it on short rations for the past few years.
  • They were also slow to market with innovations and had a significant amount of negative publicity on the performance of AutoAlert for fall detection starting in 2011 (Editor Steve) and in 2014.

The Philips Lifeline saga was a longer and more costly version of Tunstall’s acquisition of AMAC. At the time of sale, Lifeline was #1 in PERS, and AMAC was #3. Even with Tunstall’s expertise and the addition of remote patient monitoring, the US market was Too Tough For Tunstall. They sold in 2019 to…drum roll…Connect America.

The article includes excerpts from an interview with CEO Janet Dillione, a review of the Connect America team, and well wishes from those insiders. PERS Insider (Subscription to the weekly newsletter is free and found here.)

Another irony: Just prior to the acquisition, Dennis Shapiro, the former head of Lifeline, passed away on 16 February, aged 87. Mr. Shapiro was responsible for the company creating the first modern PERS radio pendant, telephone-connected base unit, and call center monitored service in 1980.

 

Aging and Health Technology Watch’s latest: The Future of Wearables and Older Adults 2021

Laurie Orlov’s latest report takes a look at the state of wearables in the older adult market. She posits that it’s comparable to where voice tech (Alexa et al) stood in 2018–at the early stage, with the present state of minimal adoption ramping up in about a three to five-year time frame. 

From the report, she identifies these tipping points:

  • Self-service hearables have made hearing improvements cool – and cheap. In the US, hearing assistance has become mass marketed and, as a result, has become less of a stigma. While not for all, it’s reduced prices overall.
  • Fitness wearables already appeal to the younger, better educated, and more affluent cohort of older adults. They will carry this trend forward as they age.
  • Designs are improving, from the Apple Watch to mobile PERS. The pendant is the past.
  • Pricing is improving
  • Technology means that one wearable can be multi functional–and research is pouring into new uses, creating new companies and tech
  • Investment is pouring into digital health, accentuating all the above
  • Doctors may be more accomodating of the ‘data overload’–but consumers may drive this with recording their own data

The future for wearables? Personalized, predictive, proactive, smart, integrated, affordable, privacy-protective–and prescribed.

The report is free and downloadable from AgeInPlaceTech.com.

Connect America acquires Philips’ Aging and Caregiving, including Lifeline

Connect America is purchasing Royal Philips’ Aging and Caregiving (ACG) line of business, including one of the top basic personal emergency response system (PERS) device providers, Lifeline. The acquisition is expected to close in a few weeks. Purchase terms, including staff, were not disclosed. The release by Connect America contains two unusual statements: both companies will remain competitive until the closing and that Philips will retain an equity stake in the company.

In the World of PERS and safety for older adults, this is big news. Our Readers will remember that Connect America, a medical alert company located in suburban Philadelphia, purchased Tunstall Americas in January 2019. Readers who follow the PERS taxonomy will recall that in 2011, Tunstall acquired AMAC, the third-largest PERS company, yet after multiple presidents and acquisitions, failed to make much of a dent in the competitive US and Canada markets. Connect America now has the major ‘name’ brand in PERS, other than Life Alert, famous for the ‘I’ve fallen and can’t get up’ TV commercials of yore and the real pioneer of the PERS pendant. Lifeline itself dates back to 1974 and was acquired by Philips in 2006. Of late, Philips has been on a divestiture tear, especially in North America.

The news hasn’t exactly made the headlines that it would have only a few years ago. One could say that the parade has passed traditional PERS pendants and home units. Replacing them are mobile and smartphones tied to assistance–GreatCall’s 5 Star services. There are bands and wristwatch forms, such as Buddi in the UK and UnaliWear’s Kanega, The latter haven’t yet the market penetration in the US but all three have in common one selling factor–none of them scream ‘old and frail at risk’ like a white pendant around the neck does. Classified now with PERS are more sophisticated but bulky devices mobile-based systems such as GreatCall’s Lively MobilePlus and Lively Wearable2, also listed as an AARP member benefit.

Connect America has been in business 35 years and has amassed a portfolio of PERS brands, traditional home and mobile devices including fall detection, plus 24/7 monitoring services. It claims to be the nation’s largest independent provider of medical alert systems under various brand names, with more than 1,000 healthcare network partners, and cumulatively over 1 million customers. Their other business is remote patient monitoring under the ConnectVitals brand and a cellular-connected device for medication management.

Another big win for Connect America is Lifeline’s agreement with AARP, marketed as part of their extensive member benefits, and other products that Philips has in this category. 

There are millions who still use traditional and mobile PERS pendants, including in the huge market of assisted living, and a multiplicity of brands, which indicate the size of the market and its longevity. The stats haven’t changed much since this Editor was with QuietCare, attempting to make PERS obsolete back in the mid-oughts. According to Freeus, the average customer is a woman, 78 years old, and keeps it for about 39 months–a little over three years. Not all of them, nor their families, feel comfortable with a smartphone which can be hard to use, break, or simply not be handy in the bathroom or bedroom. So the market is still there, albeit not a headline-making one. Hat tip to a UK Reader who wishes to remain anonymous.

News roundup: Phreesia’s IPO, Chiptech enters UK telecare market, PatientsLikeMe goes to UHG, Medopad-Tencent UK Parkinson’s pilot, Oxford VR goes to HK, Cigna Singapore’s telehealth intro, HIMSS exiting Cleveland

Patient check-in tablet Phreesia is preparing for an IPO, filing of its S-1 form this week. The number of shares and pricing is not yet announced. Phreesia, which specializes in patient intake in the office via a rugged PhreesiaPad tablet and software that integrates with major EHRs such as Epic, Cerner, and Allscripts, has survived not only 14 years, but also in New York City. Phreesia has enjoyed a relatively low profile on the health tech scene, yet it has raised close to $100 million through a Series D (Crunchbase) and maintained much the same founding leadership (Chaim Indig, Evan Roberts, Michael Weintraub). Their business includes 1,600 health firms and 70 million patient intakes annually, for $100 million in revenue in its last fiscal year, up 25 percent from previous. Timing of the IPO is not yet forecast. Mobihealthnews, Business Insider.

Coming to the UK and Europe markets are New Zealand’s Chiptech telecare systems. Chiptech has both traditional in-home and mobile monitored PERS, pill dispensers, and a smartphone-based lone worker alert device. According to their website, they are the leading provider of monitored personal alarms in Australasia. Chiptech also announced a new CEO, veteran David Hammond, whose background includes leadership roles at UTC and Chubb. 

In M&A news, UnitedHealth Group bought the contested PatientsLikeMe, which runs an online service that helps patients find people with similar health conditions. PatientsLikeMe had raised $100 million in 2017, selling a majority stake to Shenzhen-based iCarbonX, backed by Chinese giant Tencent. That investment put the company under scrutiny by CFIUS–Committee on Foreign Investment in the United States. CFIUS is especially looking at Chinese investment in companies that deal with sensitive data, trade secrets, and national security–and coming down hard. Companies like Tencent are working with the Chinese government to amass millions of patient records and data points, with no regard for consent, and to build massive medical databases [TTA 17 Apr].

Tencent has multiple strategic investments in data-driven health companies, including an interesting Parkinson’s clinical trial in the UK with London startup Medopad, which developed an app that tests cognitive abilities across a series of tasks and captures it into what’s dubbed the Markerless Motion Capture and Analysis System (MMCAS). It is being tested on about 40 patients at a private mental health clinic in London called (appropriately) Dementech NeurosciencesForbes

Mental health is hot, and Oxford VR, a spinout of Oxford University, is pairing with AXA HK and the Chinese University of Hong Kong (CUHK) to develop treatments for common mental health conditions such as social avoidance, anxiety and depressive symptoms. ‘Yes I Can’ uses virtual reality (VR) sessions over three to six weeks. In the true Chinese model (it’s free, but you don’t control where your data goes), it will also be offered to AXA’s corporate customers as part of their employee benefits services to drive better mental health outcomes in Asia. Mobihealthnews

Elsewhere in Asia-Pacific, Cigna Singapore launched a telemedicine service, Cigna Virtual Clinic, where users can access real-time doctor consults via a mobile app. Cigna is using Doctor Anywhere for the service. Telemedicine in Singapore is supervised by the Singapore Ministry of Health’s Licencing and Adaptation Programme (LEAP), “a regulatory sandbox initiative that allows the safe development of new and innovative healthcare models to be piloted in a controlled environment”. Insurance Business Asia

Back in the US, HIMSS is exiting its 30,000 square foot bricks-and-mortar office in downtown Cleveland’s Global Center for Health Innovation (a/k/a the Medical Mart). The exit will be over the next year. This is after a three-year extension of its lease inked in 2018. According to Crain’s Cleveland Business, their sources “described the move as a shift in strategy by the nonprofit that has gone through a leadership change.”

Best Buy buys Critical Signal Technologies, increasing telehealth footprint

Late last month, Best Buy with little fanfare bought Critical Signal Technologies (CST) of Novi, Michigan. CST is a device-agnostic telehealth monitoring and social work services platform through its Care Center, covering services such as PERS monitoring, medication management, and remote patient monitoring. Terms were not disclosed for this private company founded in 2006, but CST cares for 100,000 patients and has partnerships with 1,500 payers, including many Medicare Advantage plans. 

For those seeking the sunnier uplands of digital health, it’s surprising but gratifying to see Best Buy place another sizable bet in the home health area. The recent acquisition of GreatCall for $800 million is larger, but GreatCall is a turnkey, profitable company. The partnership with Tyto Care [TTA 17 April] to retail their system is relatively low risk, limited in scope, and follows their Midwest intro pattern (followed over 12 years ago with, believe it or not, QuietCare when owned by Living Independently).

Best Buy has gained kudos for moving into specialty areas in healthcare when its fellow retailers have been falling by the wayside. It covers both their bricks-and-mortar–where older adults still like to shop–and online, delivering a large slice of health tech directly to consumers. One asset, the tech-oriented Geek Squad, is a ready made unit for installing and walking older adults through using home tech. MedCityNews, MarketWatch

3rings’ well-handled transition to their March shutdown (updated)

In late summer [TTA 19 Sep] we learned that one of the most innovative UK companies in sensor-based assistive technology, 3rings, was ceasing operations as of March 2019’s end. We noted it was a planned shutdown that gave subscribers nearly six months to switch over to other technologies. Steve Purdham and his team have recommended three companies that in their estimation are good alternatives to 3rings in both their original electrical Plug (electric usage as a proxy for being up and around) and cloud-based IoT service. Three companies are recommended in detail based on needs. 3rings presents all three in detail with special offers, including a handy ‘how to’ on transitioning services.

  1. Clever Contact from Alertacall–a daily contact and reminder service
  2. Canary Care--motion sensor/IoT service which is fairly close to the way that 3rings developed. Canary Care has reorganized since last summer with new ownership [TTA 8 Nov].
  3. PPP Taking Care–pendant alarm

When asked to comment on Canary Care’s recent release (PDF) related to their service as a close fit to 3rings, Steve remarked that “As we plan our graceful close the key for us was to give all our customers significant notice of our intentions (almost 6 months) and where possible provide guidance as to ways forward. We also wanted to help as many of our customers to transition to technologies that would help them continue looking after their loved ones after March 1st 2019. Looking after all our customers means a lot to us so providing this help made sense. The team at Canary wanted to do a press release regarding their deal and I was happy to support it.”

The 3rings closing is regrettable, but the transition of their services to protect their customers deserves a ‘Well Done’. (Undoubtedly we will be hearing from Steve and the 3rings team in future.) Hat tip to Steve, Nicola Hughes of Canary Care/Lifecycle Software, and James Batchelor of Alertacall.

Unaliwear’s model/muse, Joan Hall, passes at 85

imageJoan Hall, the mother who inspired the creation of the stylish wearable PERS, Unaliwear’s Kanega watch, has died aged 85. Jean Anne Booth, Unaliwear’s CEO, founder, and Mrs. Hall’s daughter, wrote her memorable bio on the company’s website. 

Your Editor met Jean Anne in 2014 or 2015 at the mHealth Summit and in showing me the design, she explained that she wanted a wrist-worn emergency alert device/fall detection/assistant device that was stylishly designed to her mother’s exacting standards–and that didn’t require tethering to a smartphone. Mrs. Hall was also her chief style guide and model.

Joan Frances Goss Hall was an Auburn University graduate, professional model, and Army wife and mother who called Fort Sam Houston home. She opened and managed the gift shop at Fort Sam Houston, the well-regarded Army Medical Museum (AMEDD), created a memorial there, and consulted on clothing and props for the Vietnam War TV series, China Beach. For her extensive work, Lt. Gen. James Peake awarded Joan the Army’s highest civilian award, the Outstanding Civilian Service Medal, in 2000.

It strikes this Editor that through Mrs. Hall, we are reminded that this is not wholly a chilly business of seeking funding, avoiding data breaches, AI, sensors, and chips. There’s a human factor here that we are designing technology to help people.

There is much more, which you should read here

Our TTA team’s sympathy to Jean Anne and her family.

The Apple Watch, ECG and fall detection–a trend too far?

[grow_thumb image=”https://telecareaware.com/wp-content/uploads/2018/10/apple-watch-series-4-elektrokardiogram.jpg” thumb_width=”125″ /]Mid-September’s Apple Fans kvelled about the Apple Watch Series 4 debut. Much was made in the health tech press of Apple’s rapid FDA clearance and the symbolism of their further moves into medical devices with the Series 4 addition of a built-in atrial fibrillation-detecting algorithm and an ECG, along with fall detection via the new accelerometer and gyroscope.

This latter feature is significant to our Readers, but judging from Apple’s marketing and the press, hardly an appealing Unique Selling Proposition to the Apple FanBoys’n’Girls who tend to be about 35 or wannabe. The website touts the ECG as a performance feature, a ‘guardian and guru’ topping all the activity, working out, and kickboxing you’re doing. It positions the fall detection and Emergency SOS in the context of safety during or after hard working out or an accident. It then calls 911 (cellular), notifies your emergency contacts, sends your current location, and displays your Medical ID badge on the screen for emergency personnel, which may not endear its users to fire and police departments. 

Laurie Orlov in her latest Age In Place Tech article points out the disconnect between the fall risk population of those aged 70+ and the disabled versus the actual propensity (and fisc) to buy an Apple Gizmo at $400+. PewInternet’s survey found that 46 percent of those over 65 actually own a smartphone, though this Editor believes that 1) much less than 50 percent are Apple and 2) most smartphone features beyond the basic remain a mystery to many. (Where store helpers, children, and grandchildren come in!)

Selling to older adults is obviously not the way that Apple is going, but there may be a subset of ‘young affluent old’ who want to sport an Apple Watch and also cover themselves for their cardiac or fall risk. (Or have children who buy it.) This is likely a sliver of a subset of the mobile PERS market, which is surprisingly small–only 20 percent of the total PERS market. But monitoring centers–doubtful, despite it being lucrative for GreatCall.

Buddi looking for two dynamic Sales Account Managers (UK)

[grow_thumb image=”https://telecareaware.com/wp-content/uploads/2014/12/lavender_set_34.jpg-buddi.jpg” thumb_width=”150″ /]A note from reader Fiona Carmichael advises us that the Buddi personal emergency response system is seeking two professionals to become UK Sales Account Managers. “Your role will have a key focus on driving new business within a B2B environment, as well as building and developing existing customer accounts for organic growth.” Please contact Fiona directly after you read the job description (docx). (This closes 28 Feb.)

(A reminder to our Readers that Who’s Hiring–and Who’s Available–are free services of TTA and a great way to connect with thousands of readers in the UK and the US. We post initially in Latest News and archive in ‘Who’s available?’ and ‘Who’s hiring’.)

UnaliWear’s Kanega PERS watch nears US launch

[grow_thumb image=”https://telecareaware.com/wp-content/uploads/2017/02/531571-unaliwear-kanega-watch.jpg” thumb_width=”175″ /]Catching up with UnaliWear’s Kanega watch, which (unbelievably) we haven’t written about since 2015 but have noticed in the Austin tech news, we are cheered to hear that the company is nearing a market launch. This is after two 2016 raises: a November $3.5 million Series A at a $15 million valuation and a February $3.4 million seed round (CrunchBase). This Editor spoke with founder/developer Jean Anne Booth at the 2015 HIMSS Connected Health Conference/mHealth Summit (now PCHA Connected Health Conference) after seeing it in 2014, and was impressed by the design and workmanship of the watches at that time. Ms Booth, a self-described tech geek who developed and sold Luminary Micro, which created a microcontroller (MCU) platform, to Texas Instruments and is also an AMD alumna, wanted an emergency alert device that was stylishly designed to her mother’s exacting standards (a former fashion model and impeccable dresser, left above) and functionally advanced. Her initial designs were funded through a Kickstarter campaign [TTA 27 Mar 15]. As we reported before that in February, it’s quite apart from the usual run of PERS. [grow_thumb image=”https://telecareaware.com/wp-content/uploads/2017/02/531584-unaliwear-kanega-watch.gif” thumb_width=”100″ /]Kanega is fully cellular, self-contained and voice-controlled with no buttons: GPS, emergency response connection, fall/inactivity detection, ‘guide me home’ location based voice assistance and medication reminder/assistance behind a high-contrast digital time display which makes it look like a regular (albeit fashionably chunky) watch (left). In mid-year, which is the scheduled market launch, the activation fee will be $50 with a monthly charge of $49.99. If you can’t wait, pre-orders are being takenPC Magazine

A curious ‘Ripple’ of an announcement involving Tunstall Americas

[grow_thumb image=”https://telecareaware.com/wp-content/uploads/2017/02/ripplenetwork_5890862790fc7.jpg” thumb_width=”300″ /] A startup company in the US, Ripple Network Technologies, announced on 31 January its Kickstarter campaign for what appears to be a small, stylish personal safety device styled like a small metal lock or locket. The release states that “Ripple users can discreetly signal their monitoring team for help with the click of a penny-sized Bluetooth wearable, designed by the creators of 360fly and Misfit Shine” that connects to a smartphone. One of the features is that there’s a partnership with Tunstall Americas to provide that 24/7 monitoring, with an extensive quote from CEO/president Casey Pittock.

It’s clearly aimed at a younger market than typical for PERS, concerned with stylish safety in ‘lone’ situations and not with ‘falling and I can’t get up’. The stated Kickstarter price is also appealing: $129 for the standard sensor, $199 for a specially designed sterling locket style, both inclusive of one year of monitoring service. Release is scheduled for April.

Despite this announcement, the Kickstarter site is not up yet. The Ripple website has a flashy animation homepage without detail, found only through their LinkedIn company page which also is bereft of details. Other than the release pickup on ReadItQuik.com, this Editor cannot locate the release on the standard PR release sites such as Business Wire or PRWeb. (The Tunstall Americas website has not been updated for news since last August.) A curious start indeed.

Update: Ripple’s communications director in the Comments has supplied the Kickstarter link which went live on 1 Feb, and is here. The website now has an Order Now button which links to the Kickstarter page. Key features: click once to receive a call from the monitoring center, or click 3 times or more to summon emergency help or a call per your profile setup. A potential drawback: no two-way communication except via phone and the BTE connection, which if you are separated from it (for instance, your purse is stolen), the system won’t work.

The requested raise is $50,000 by 3 March. PRNewswire release.

Tunstall Americas adopts belle

We haven’t heard much from Tunstall Healthcare in the past two months, but Tunstall Americas has announced that the belle PERS unit has been added to the US line of products which now . The belle is on the AT&T GSM cellular network for two-way voice communication with their 24/7 call center and GPS location technology. The pendant has a rechargeable battery that can last up to 30 days on a single charge, and can be either worn or carried in pocket or purse. Also new in the line is the Tunstall flood detector which signals the call center through the Vi+ and CEL.  Release, Tunstall Americas website.

Ireland telecare monitoring a relative price bargain

Our former Ireland editor Toni Bunting, in her business development capacity with TASK Community Care in County Meath and Belfast, notes that Irish pendant alarm (PERS) monitoring charges are on average considerably lower than charges in the UK and in Europe. At current advertised rates of approximately €65 – €80 annually, the rates are lower than the 2010 study of UK rates of £170-200 and £200 – £300 in Europe. (Of course with fluctuations in the pound, that may change!) Toni is asking if there are rates in Ireland which fall substantially outside this range, so please be in touch here or on Telecare.ie-Ireland’s Telecare Magazine, which provides information on emergency pendant alarms, telecare and 24/7 monitoring for Irish individuals, community workers and health professionals.

Chubb expands Community Care into Scandinavia (UK)

[grow_thumb image=”https://telecareaware.com/wp-content/uploads/2016/08/Care_Call_website_medium.jpg” thumb_width=”150″ /]Chubb Community Care, a UK company which provides home and mobile technology enabled care solutions (TECS) for independent, assisted, sheltered and extra care housing, announced their expansion into Norway, Sweden and Finland, partnering with Norwegian equipment supplier HEPRO which provides local service and market knowledge. Their first project is in HEPRO’s home country with the new Chubb Care Call. Care Call (left) is a colorful wall-mounted mobile-connected unit with simple buttons that connects the resident to onsite staff and remote call centers in case of emergency or need for assistance. HEPRO will be installing the units in seven municipalities. Release. Earlier this summer, Chubb won a contract with Places for People to install their CareUnity at 16 independent living locations across the North West, Hull and Bristol. Care Unity is a PERS/carephone-based system that integrates a wide range of safety and security peripherals. Release

Tunstall Americas’ Vi+ offers free temperature monitoring

[grow_thumb image=”https://telecareaware.com/wp-content/uploads/2014/07/Big-T-thumb-480×294-55535.gif” thumb_width=”150″ /]Last week Tunstall Americas emerged from a long period of quiet with their introduction of Tunstall’s Vi+ telecare home unit [TTA 3 Aug]. We noted that Vi+ included an integral ambient temperature sensor which could alert their response center on extremes in home temperature and that the release highlighted it. This week, we learned the reason why, as on Tuesday they announced marketing that capability as free Temperature Extremes monitoring for subscribers of their medical alert monitoring service. When the ambient temperature sensor is activated, their call center will be alerted when the room temperature rises above 89°F or falls below 50°F. The subscriber and registered contacts are then notified so that the person can be checked and the situation corrected. Tunstall release (PRWeb)