Global Market for Med.

Apps June 2012

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CHAPTER ONE: EXECUTIVE SUMMARY ..........................................................1

Healthcare Industry ............................................................................................................ 1
Methodology......................................................................................................................... 2
Size and Growth of the Market .......................................................................................... 3
Issues Facing the IT Healthcare Market ........................................................................... 5

CHAPTER TWO: INTRODUCTION .......................................................................6

PDAs and Smartphones: Industry Overview .................................................................... 6
Smartphone/Tablet Applications ....................................................................................... 8
Defining Smartphones and PDAs ..................................................................................... 9
Growth of Smartphones and Tablet PCs ........................................................................ 11
Smartphone Design ......................................................................................................... 11
Mobile Media Device Profit Comparison ....................................................................... 12
Smartphone-Specific Service Fees .................................................................................. 15
Wireless Device Connection Speeds ............................................................................... 15
Healthcare Efficiency ........................................................................................................ 17
Are Electronic Healthcare Systems More Efficient? ...................................................... 18
Mobile Medical Record Apps ......................................................................................... 20
Healthcare Establishments .............................................................................................. 22
Hospitals.......................................................................................................................... 23
Physicians ........................................................................................................................ 28
Nursing Homes................................................................................................................31
Pharmacies ...................................................................................................................... 32
Handheld Device Technology Adoption by Physicians .................................................. 34
Population Statistics .......................................................................................................... 35
U.S. Demographics ......................................................................................................... 35
World Demographics ...................................................................................................... 39
U.S. Food and Drug Administration Requirements for Mobile medical Applications43

CHAPTER THREE: TECHNOLOGIES AND COMPETITORS .......................46

Medical Applications ......................................................................................................... 46
Business Model for Device/Platform Developers ........................................................... 47
App Developer Business Strategy ................................................................................... 48
Smartphones in Healthcare .............................................................................................. 49
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Benefits of Healthcare Smartphones ............................................................................... 49

Challenges in the Implementation of Smartphones in Healthcare Settings .................... 49
EMR/EHR App Integration............................................................................................. 50
Apps and Tablet PCs ....................................................................................................... 51
Apple App Stores Top-Grossing Apps .......................................................................... 52
Profit in Apps ..................................................................................................................... 54
Leading Apps and App Developers.................................................................................. 54
Epocrates, Inc. ................................................................................................................. 55
Critical Care ACLS and Nursing Essentials ................................................................... 57
Sanford Guide to Antimicrobial Therapy........................................................................ 57
Medscape Mobile ............................................................................................................ 58
Skyscape Medical Resources .......................................................................................... 58
Nursing Central ............................................................................................................... 59
Care360 Mobile ............................................................................................................... 60
The ECG Guide ............................................................................................................... 60
STAT ICD-9 LITE .......................................................................................................... 61
Lexicomp Medical Apps ................................................................................................. 61
Tarascon Pharmacopoeia................................................................................................. 62
Netters Atlas of Human Anatomy.................................................................................. 63
Apps for Diabetes Management ...................................................................................... 64
Sunrise Health System and the iTrage App..................................................................... 64
Electronic Medical Records and Apps ............................................................................ 65

CHAPTER FOUR: MARKET OVERVIEW..........................................................75

The Overall Mobile App Market ..................................................................................... 75
Reviewing the Market for Medical Apps ........................................................................ 80
Analysis of Medical Apps by Type/Category .................................................................. 85
The Medical App Market Forecast 2016 ......................................................................... 89
Regional App Markets ...................................................................................................... 92
Market Summary ............................................................................................................. 94
Market Drivers and Inhibitors ......................................................................................... 99
Growth Drivers................................................................................................................ 99
Growth Inhibitors ............................................................................................................ 99
Emerging Trends ............................................................................................................. 100
Case Studies .................................................................................................................. 101

APPENDIX: LIST OF COMPANIES ...................................................................104



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CHAPTER ONE: EXECUTIVE SUMMARY ..........................................................1

Figure 1-1: The Global Market for Medical Mobile Apps 2009-2016 ............................ 4

CHAPTER TWO: INTRODUCTION .......................................................................6

Table 2-1:Leading Smartphone Operating Systems ...................................................... 10
Table 2-2: Comparison of Early and Current Smartphone Technologies ................... 12
Table 2-3: Income Comparison for Apple, HTC, and RIM for Fiscal Year 2011 ....... 14
Table 2-4: Smartphone Data and WiFi Download Connection Speed Comparison ... 16
Table 2-5: U.S. Registered Hospitals by Type, 2010....................................................... 24
Figure 2-1: Number of Hospitals in the US, 1975-2005, Estimated 2015 ..................... 25
Table 2-6: Select For-Profit U.S. Hospital Chains, 2010 Data....................................... 26
Figure 2-2: Number of Hospital Mergers in the US, 1998-2007 .................................... 27
Figure 2-7: Number of Physician Offices, 2000-2009 ..................................................... 29
Figure 2-3: Number of Nursing Homes, 2000-2009 ........................................................ 31
Figure 2-4: Number of Pharmacies and Drug Stores, 2000-2009 ................................. 33
Table 2-8: Medical Doctors per 1,000 Population by Country ...................................... 34
Table 2-9: The U.S. Population, 1980-2050 ..................................................................... 35
Figure 2-5: The U.S. Population, 1980-2020 ................................................................... 36
Table 2-10: Percent U.S. Population Over Age 65 by Year ........................................... 37
Figure 2-6: Estimated Population by Age Group, 2000 and 2050 ................................. 38
Table 2-11: The World Population, 1980-2050 ............................................................... 39
Figure 2-7: The World Population, 1980-2020 ............................................................... 40
Table 2-12: Percent World Population Over Age 65 by Year ....................................... 41
Figure 2-8: Estimated Population by Age Group, 2000 and 2050 ................................. 42

CHAPTER THREE: TECHNOLOGIES AND COMPETITORS .......................46

Table 3-1: Apple App Stores Top Grossing iPhone Medical Apps* ........................ 53
Table 3-2: Epocrates Purchase Plan ................................................................................ 55
Table 3-3: Percent of Office-based Physicians Using EMRs, 2001-2010* .................... 66
Figure 3-1: Percent of Office-based Physicians Using EMRs, by Level
of EMR System, 2006-2010 .............................................................................................. 67
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Table 3-4: State Data: Percent of Office-based Physicians Using EMRs,

Preliminary 2010 ............................................................................................................... 70

CHAPTER FOUR: MARKET OVERVIEW..........................................................75

Figure 4-1: Number of Available Apps* (Estimates; All Types), 2008-2011 ............... 76
Figure 4-2: Share of All Available Apps by Platform/Store 2009 ................................. 77
Figure 4-3: Share of All Available Apps by Platform/Store 2010 ................................. 78
Figure 4-4: Share of All Available Apps by Platform/Store 2011 ................................. 79
Table 4-1: Market for Medical Apps by Platform, 2010 and 2011 ............................... 81
Figure 4-5: Sales of Medical Apps by Platform, 2010 vs. 2011...................................... 82
Figure 4-6: Share of Medical Apps Sales by Platform 2010 .......................................... 83
Figure 4-7: Share of Medical Apps Sales by Platform 2011 .......................................... 84
Table 4-2: Estimated Sales of Medical Apps by Product Type, 2011 ........................... 86
Figure 4-8: Sales of Medical Apps by Product Type, 2010 vs. 2011 ............................. 87
Figure 4-9; Estimated Distribution of Sales by Product Type, 2011 ............................ 88
Table 4-3: The Market for Medical Apps, 2011 vs. 2016 by Platform ......................... 89
Figure 4-10: Sales of Medical Apps by Platform, 2011 vs. 2016.................................... 90
Figure 4-11: Share of Medical Apps Sales by Platform 2016 ........................................ 91
Table 4-4: Cellular Phone Subscribers by Country ....................................................... 93
Table 4-5: Estimated Products Sales for Mobile Medical Apps by
World Region, 2011 ........................................................................................................... 97
Figure 4-12: Estimated Products Sales for Mobile Medical Apps by
World Region, 2011 .......................................................................................................... 98


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Two: Introduction
20

medical devices. One survey found that physicians reported up to one hour time
savings per day spent doing the same daily tasks with a tablet computer.
In 2011, the U.S. Department of Veterans Affairs (VA) announced plans to
purchase 100,000 tablet computers for its medical providers. This was reported in
conjunction with plans to establish a nationwide mobile management solution.

Mobile Medical Record Apps

Hospitals, especially large hospital networks, have significant investments in
large EMR systems. For example, Kaiser Permanente is based in California, but it has
hospitals located in and out the state increasing the expense of a complete system.
The Kaiser electronic health system cost several billion dollars.
Mobile apps are available as a compliment to a large system or a smaller
clinic-based system. Apps may even be offered as standalone EMR systems. The
ability to use a small standalone system can be appealing to smaller providers using
mobile devices such as tablets. Clinics with only a couple of physicians and nurses
are reluctant to make the investment in complex systems due to cost, skepticism, and
the learning process.
DrChrono, Inc. offers a portfolio of medical iPad apps for professionals in
health systems management and patient care. It has a certified complete EMR/EHR
solution that meets ONC-ATCB stage 1 criteria which entitles users to stimulus plan
funding if all requirements are met.
DrChrono also offers a patient check-in app called, OnPatient. This system is
iPad based and it automatically updates patient information. A patient fills out their
information after checking in at an office center, reducing the paperwork from the
very beginning.

Cloud-Based Mobile Healthcare

Cloud-based services or websites use a simple process where data is stored at
a central location. With some systems, there may be a large number of providers and
payers that all work on connection to access and deliver goods or services.
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in whole or in any part, is strictly prohibited.

Four: Market Overview

86
Table 4-2

Estimated Sales of Medical Apps by Product Type, 2011

Product Type

Revenues Estimates
(in millions)

Share of
Total Market

Clinical Decision Support Systems

Medical Reference
Study Tools/Games/Flashcards
Drug References
Nursing Tools
Others
Total

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in whole or in any part, is strictly prohibited.

Four: Market Overview

102

Medical Claims Billing

Medical workers are often working with insurance companies and other payers to receive
the reimbursement for their services. This can result in an untimely accounts receivable
turnaround for the health provider. If there is a breakdown in the communication between heath
provider, patient, and payer, the system is frustrating for providers. Some of the reasons for long
accounts receivable cycle or a loss of revenues are:
x

poor management of claims

poor management of co-pays at time of service

untimely follow-up of claims

coding errors

There are a growing number of medical apps to assist with billing for medical claims.
Some of these apps are geared to assist the billing office in claims management while other apps
are used for health professionals to gather billing information and send to the billing office
allowing the health professional to focus on patient care rather than billing issues.

Mobile Healthcare Workers

A segment of healthcare that has experienced a benefit in using mobile apps is mobile
healthcare, such as home hospice. One large health provider reported saving $XXXX a year in
costs by implementing a mobile system for its workers. It used a network of smartphones for
over XXX workers, providing care to XXX patients. Some of the benefits included:
x

reduced time to receive Medicare reimbursement

reduced paper waste

reduced travel costs for workers

improved efficiency for workers

Copyright 2012 Kalorama Information

Reproduction without prior written permission, in any media now in existence or hereafter developed,
in whole or in any part, is strictly prohibited.