The Economic Viability of an In-Home Monitoring System in the context of an Aged Care Setting

TL;DR

This paper evaluates the economic viability of in-home monitoring systems in aged care, highlighting potential cost savings, revenue opportunities, and improved preventative care through a pilot program analysis.

Contribution

It provides an economic analysis demonstrating how in-home monitoring can be financially viable and improve care in aged care settings.

Findings

Revenue can be generated through additional services like real-time monitoring.

Healthcare costs can be reduced via early intervention and trend analysis.

Monitoring systems enable a shift from reactive to preventative care.

Abstract

The aged care sector in Australia faces significant challenges. While many of these issues have been clearly identified, their urgency has been further highlighted during the COVID-19 pandemic. Technology such as in-home monitoring is one way to address some of these challenges. However, the efficacy of technology must be considered together with its implementation and running costs to ensure that there is a return on investment, and it is economically viable as a solution. A pilot program was run in-home monitoring system to test the efficacy of this system. This paper focuses on an economic analysis to better understand the financial viability of such systems. Using a secondary analysis approach, the findings identified that revenue could be generated by providing carers with additional services such as real-time monitoring of the client, which can foster deeper relationships with the customer, along with savings of healthcare costs to carers, service providers and Government. Savings are related to the earlier intervention of critical events that are identified by the system, as delays in treatment of some critical events can create much more severe and costly health outcomes. Further health costs savings can be made via trend analysis which can show more nuanced health deterioration that is often missed. The implementation of preventative measures via this identification can reduce the chances of critical events occurring which have much higher costs. Overall, monitoring systems lead to a transition from a reactive to a preventative services offering, delivering more targeted and personalised care.