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Because chronic conditions are difficult to manage by patients at home, with complications, hospitalizations and other expensive interventions sometimes necessary, they account for more than 75% of healthcare costs worldwide. To meet this need, Moseda Technologies has developed innovative, secure mobile software solutions for the $20 billion community/home care market. In this interview with The Life Sciences Report, Moseda’s CEO, Dr. Lisa Crossley, describes the company’s comprehensive hardware and software solution, dubbed CareKit, which allows patients to receive high-quality care in the home, improving health outcomes and enhancing quality of life for patients and families while reducing the cost of care.

Chart courtesy of Moseda Technologies Corp.

Management Q&A: View From the Top

The Life Sciences Report: Can you elaborate on the costs associated with long-term care, which Moseda Technologies Inc. (MSD:TSX.V) (FLNTF) can address?

Dr. Lisa Crossley: Chronic conditions account for over 75% of healthcare costs worldwide. These conditions are often poorly managed by patients at home, leading to complications and the need for emergency room (ER) visits, hospitalizations, long-term care facility admissions and other costly interventions. Readmissions cost the healthcare system precious funding, and U.S. hopitals are subject to payment penalties when a Medicare beneficiary is readmitted within a prescribed period with a complication that Medicare considers preventable. Approximately 20% of Medicare patients who are hospitalized end up back in the hospital within 30 days. Patient transport wastes precious healthcare dollars. In the U.S. each year, 2.2 million (2.2M) patients are transported between ERs to access the appropriate specialized care, at a cost of $1.39 billion ($1.39B). U.S. correctional facilities spend over $450M annually transporting inmates to ERs and doctors’ offices. Assisted living facilities in the U.S. incur over $5B in transportation and medical costs associated with ER and physician office visits.

TLSR: We understand that Moseda is at the intersection of healthcare and technology. Please explain what this means, and describe the market opportunity in front of you.

LC: Over the last decade, there has been a dramatic increase in the development and adoption of information technology (IT) solutions for healthcare. From digital imaging to electronic medical records to consumer health apps, IT solutions have been developed to address the needs of health systems, clinicians, payors and patients. Healthcare IT solutions can improve health outcomes, reduce healthcare costs, enhance clinician and patient satisfaction, and increase access to care.

The global healthcare IT market grew from $99.6B in 2010 to $162B in 2015, at a compounded annual growth rate (CAGR) of 10.2%. Moseda is targeting the large and rapidly growing global market for community-based care, or virtual healthcare. According to BCC Research, this market reached $19.2B globally in 2014 and is expected to grow at a CAGR of 17.7%, exceeding $43B by 2019.

Moseda is targeting the large and rapidly growing global market for community-based care, which is expected to grow at a CAGR of 17.7%, exceeding $43B by 2019.

Support from governments worldwide in the form of stimulus packages has been a powerful driver in this market. Initiatives in Canada, the U.S., Europe, China and other jurisdictions to implement province-, state- or nationwide health records have fueled significant government investment in healthcare IT. In the private sector, a survey by industry research firm peer60 showed that the top priority for spending in 2015 for U.S. hospitals with greater than 250 beds was population health management, which can best be achieved through cost-effective high technology, low-touch solutions like Moseda’s.

On the investment front, mobile health (mHealth) companies have received more than $3.5B in over 500 deals since 2010. In 2015 alone, over $1.3B in venture capital funding was invested in mHealth ventures.