Medical Needs for the Electronics Industry; Market Analysis and Electronic Roadmap Needs.

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Medical Needs for the Electronics
IndustryMarket Analysis and Electronic Roadmap
Needs.

• Terrance J. Dishongh, Ph.D.
• Support from
• Intel (Brad Needham, Eric Dishman, Jay Lundell,
  Margie Morris), Plexsus (Bill Bartel), 3M, ITF,

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Elder care is returning home again
Poor Houses / Almshouses pauper
Home grandma
Insane Asylum inmate
Only way to save costs but increase quality is
home care. Home care is fastest growing segment
of health industry.
Hospital patient
Home grandma
Nursing Home senior citizen
Assisted Living resident
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To care for an aging planet
2002
2050
Percentage of Population over 60 years
old Global Average 10
Percentage of Population over 60 years
old Global Average 21
SOURCE United Nations ? Population Aging ? 2002
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Worldwide age wave is coming
Today 34 million elders in U.S. 550 million
worldwide 5 U.S. workers to 1 retiree 3 Japan
workers to 1 retiree
By 2025 74 million elders in U.S. 1.2
billion worldwide 3 U.S. workers to 1 retiree 2
Japan workers to 1 retiree
Other facts 80 years old is fastest
growing old old are 2 women 1 man
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Nurses/caregivers in short supply
The 10 fastest-growing occupations include
medical assistants, jobs for whom are expected to
grow by 59 percent, or 215,000 new jobs network
systems and data communications analysts,
positions for whom the BLS expects to jump by 57
percent, or 106,000 new jobs and physician
assistants, for whom the BLS projects a 49
percent rise, or 31,000 new jobs.
Source Bureau of Labor Statistics, pub in
CNN/Money.com, Where the jobs will be Greatest
employment growth is likely to be in service
industries, according to new labor study. By
Jeanne Sahadi, Feb 13, 2004.
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Boomers spending big on health

• The biggest growth in health-care spending these
  days isn't coming from today's elderly. It's
  coming from tomorrow's elderly -- the baby
  boomers and their younger siblings.
• Per capita spending among Americans aged 30 to
  50 rose more than 75 between 1987 and 2000.

Source WSJ Tomorrow's Elderly Fuel Health-Care
Spending And Strain the System 1-25-04
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The global challenge simply put

• Increase the quality of care of life
• for twice the number of seniors
• while reducing healthcare costs.

• Current healthcare system is optimized for
  treating disease innovation is clinic-and-pharma
  centric
• Have to invent system optimized for wellness
  (prevention, early detection, compliance,
  caregiver support)
• Must put technologies into everyday lives of
  people must put the home, consumer, informal
  caregivers in the loop and offload formal
  institutions when appropriate
• It will take decades to achieve, but must start
  RD (research debate) now if we ever hope to
  get there

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Worldwide healthcare crisis is here

• Every major world economy has health as biggest
  percentage
• Nursing shortage in many parts of the world
• South Korea and Japan technology infrastructure

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Result Home care inflection point
Healthcares costs, coverage problems and
demographic pressures mean system overload its
formal institutions cant cope with the future.
What will ease the pain? A major shift, enabled
by technology, to self-care, mobile care, home
care. - Forrester
Report, Dec 2002
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Market Analysis

• Prismark estimates that medical electronics
  equipment production will be 39.5Bn in 2004,
  accounting for about 4 of the global electronics
  industry.
• This market is expected to continue to increase
  at an average rate of 4.4 per year through 2008.
  
• Growth is primarily driven by the worldwide
  demographical shift to an older population, which
  indicates a continuing increase in medical care
  spending.
• Medical care is already the single largest
  component of the US GDP.

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Market AnalysisOutsourcing and RD

• Prismark estimates that 62 of medical
  electronics equipment will be assembled in the
  Americas in 2004.
• This region is followed by Europe 21, Japan 10,
  and the Rest of Asia 7,
• Most medical electronics systems (by value) are
  produced in the region where the products are
  consumed.
• However, several major medical electronics
  companies, such as Siemens and GE, are increasing
  design and assembly activities in lower-cost
  regions, such as China.
• As the percentage of medical electronics consumed
  in developing economies increases, a greater
  percentage of medical electronics systems will be
  produced there.

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Market Analysis
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Market Analysis
Product 2004 Units (Est.) Major Suppliers
Hearing Aids 6M Siemens, GN Resound
Pacemakers 0.8M Phonak, Starkey, Oticon, Widex
Implantable External Defibrillator (ICD) 0.2M Medtronic, St. Jude, Guidant
Automated External Defibrillator (AED) 0.13M Philips, Medtronic, Zoll Medical, Cardiac Science
Ultrasound 0.06M Philips, GE, Siemens, Toshiba
Magnetic Resonance Imaging (MRI) 0.003M GE, Siemens, Philips, Hitachi, Toshiba
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NEMI Roadmap Issue

• Situation Analysis
• NEMI is addressing the rise in the electronic
  healthcare sector.
• Convergence of Market Demands and Regulatory
  Issues are Driving Action in two different
  directions.
• Critical (Infrastructure) Issues
• American Retirees should double by 2025 putting
  excessive demand on the healthcare system.
• Demand for Healthcare is outpacing the supply.
  Especially as boomers age.
• No-lead issues with chlorine bleach.

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Convergence new home health platform

• Digital home entertainment infra can be used for
  health
• Everyday health through everyday devices
• Personalized, proactive health info/reminders/agen
  ts

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NEMI Roadmap Issue

• Needs in the Industry
• Greater IT infrastructure to drive diagnostics
  and patient records. (Bush has 100M into Patient
  Electronic Records Research)
• There is not a complete architecture between POC,
  monitoring, compliance, diagonistics and records.
  (New Technology is not needed as much as
  integration).
• Growing number of PAN based companies show
  constant monitoring and sensor networks are close
  at hand.

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Issues and Future Trends

• MEMs and Implantable Devices are a growing
  market segment.
• New Research near to market
• Ion Sensitive Field Effect Transistors
• Inductive recharging
• Impact to national economy on healthcare will
  force the need for less expensive systems.
• 74 million elders in 2025
• Impact is a national trend toward home health
  technologies in the long term
• Integration and Interface Design are strongly
  needed. Eric Dishman Testimony to House
  Subcommittee on Aging.

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Why is Intel here?

• Grow our markets supply computing and
  communications technologies to a broadly defined
  home health wellness market which is poised for
  massive growth worldwide
• Healthy workforce insure our own 80,000
  employees worldwide have tools, technologies, and
  training to care for their own aging parents
• Healthy economy for business catalyze new
  paradigms of health care to head off looming
  worldwide economic crisis from high-cost,
  clinic-centric care that cannot scale to meet the
  needs of the age wave

We will never be a healthcare company. We supply
technology ingredients. But we continue to lead
RD in new areas. And some new players will shape
next generation technologies for the next
generation of seniors.
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Intels Proactive Health Lab
Evidence-Based Technology Research
Evidenced-Based Technology Research
http//www.intel.com/research/prohealth/
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Intels Proactive Health Lab
http//www.intel.com/research/prohealth/
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Intels Proactive Health Lab
http//www.intel.com/research/prohealth/
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Ion Sensitive Field Effect Transistor (ISFET)
DNA Polymerase Marker for ACGT Nucleotides by pH
changes

• Purushothaman and Toumazou
• IEEE PROC 2001

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Intels Precision Biology Lab
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Intels Research Council grants
http//www.intel.com/research/university
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CAST partnership with AAHSA
http//www.agingtech.org
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CAST partnership with AAHSA
http//www.agingtech.org
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ETAC consortium with Alz Assoc
http//www.alz.org
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• Health care is the mother of all big businesses
  . this is life and deathsome people will get
  access to this health-care mainframe, and
  everybody else dies.
• - Andy Grove

Source Intel's Andy Grove The Next Battles in
Tech The IT visionary says tech needs to learn
to think bigger, by Brent Schlender, FORTUNE,
Monday, April 28, 2003