Patient Safety in Healthcare,

Forecast to 2022

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Investment Trends, Growth Opportunities,
Challenges, and Future Perspectives

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Global Transformational Health Research Team at Frost & Sullivan

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January 2018
 Contents

Section Slide Number

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Executive Summary 12

 Key Findings—Patient Safety Adverse Events and their Impact 13

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 Key Findings—Segmental Analysis 14

 Key Questions This Study Will Answer 17

 Scope and Segmentation 18

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6 Biggest Patient Safety Adverse Events in Healthcare

Patient Safety in Healthcare—Overview

Patient Safety—Key Concepts and Definitions

Patient Safety—Introduction
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 Patient Safety Adverse Events Across the Care Continuum 23

The Business Case for Patient Safety in Healthcare 24

 Patient Safety—What‘s the Big Deal? 25

 Patient Safety—An Expensive, but Preventable Epidemic 26

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 Contents (continued)

Section Slide Number

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 Patient Safety—Classification of Costs of Adverse Events 27

 Patient Safety Adverse Events—Cost and Epidemiological Impact on Healthcare Systems 28

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 Patient Safety Adverse Events—Cost and Epidemiological Impact, Forecast by Country 29

 Patient Safety Adverse Event Impact on Healthcare Systems—Discussion 30

 Strong Case for Improving Patient Safety 31

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Patient Safety—Dynamics Catalyzing Growth

Preventable Errors in Care Provision Aggravate Adverse Events

Forces Driving the Market for Patient Safety

Market Drivers
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 Market Restraints 36

 Impact Mapping of Drivers and Restraints for Patient Safety Market 37

Patient Safety—A Top Regulatory Priority 38

 Patient Safety—A Top Regulatory Priority 39

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 Contents (continued)

Section Slide Number

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 Major Patient Safety Regulations and Initiatives—US 41

 Patient Safety Regulation and Initiatives—US: Recent Updates 42

Major Patient Safety Initiatives—Europe 43

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

Patient Care Management Segment 44

 Patient Care Management Segment—Description and Future Focus 45

 Patient Care Management—Impact on Healthcare Systems by Country 46

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Patient Care Management—Average Additional Costs Per Patient Safety Adverse Event

Patient Care Management—Stakeholder Focus and Degree of Control: US

Patient Care Management—Stakeholder Focus and

Degree of Control: Europe
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 Patient Care Management Segment—Future Market Potential 50

 Patient Care Management Segment—Discussion 51

Health IT Management Segment 55

 Health IT Management Segment—Description and Future Focus 56

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 Contents (continued)

Section Slide Number

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 Health IT Management—Impact on Healthcare Systems by Country 57

 Health IT Management—Average Additional Costs Per Patient Safety Adverse Event 58

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 Health IT Management—Stakeholder Focus and Degree of Control: US 59

 Health IT Management—Stakeholder Focus and Degree of Control: Europe 60

 Health IT Management Segment—Future Market Potential 61

Health IT Management Segment—Discussion 62

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Surgical Care Management Segment

Surgical Care Management Segment—Description and Future Focus

Surgical Care Management—Impact on Healthcare Systems by Country

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 Surgical Care Management—Average Additional Costs Per Patient Safety Adverse Event 70

 Surgical Care Management—Stakeholder Focus and Degree of Control: US 71

 Surgical Care Management—Stakeholder Focus and Degree of Control: Europe 72

 Surgical Care Management Segment—Future Market Potential 73

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 Contents (continued)

Section Slide Number

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 Surgical Care Management Segment—Discussion 74

Environment and Workforce Management Segment 78

Environment and Workforce Management Segment—Description and Future Focus 79

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

 Environment and Workforce Management—Impact on Healthcare Systems by Country 80

 Environment and Workforce Management—Average Additional Costs Per Patient Safety

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Adverse Event


Europe
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Environment and Workforce Management—Stakeholder Focus and Degree of Control: US

Environment and Workforce Management—Stakeholder Focus and Degree of Control:

Environment and Workforce Management Segment—Future Market Potential

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 Environment and Workforce Management Segment—Discussion 85

Patient Safety—Competitive Environment 88

 Patient Safety—Emerging as a Strong Value Proposition 89

 Patient Safety—A Key Component of Risk and Quality Management Strategies 90

 6 Big Themes for Patient Safety Competitive Environment in Healthcare 91

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 Contents (continued)

Section Slide Number

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Patient Care Management Segment—Competitive Landscape 92

 Patient Care Management Segment—Key Vendor Solutions 93

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 Patient Care Management Segment—Vendor Landscape 94

 Patient Care Management—Notable Solutions and Case Examples 95

 Patient Care Management Segment—Market Opportunities 97

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Health IT Management Segment—Competitive Landscape

Health IT Management Segment—Key Vendor Solutions

Health IT Management Segment—Vendor Landscape

Next-gen Wearables for Enhanced Safety, Care Coordination, Reduced Costs

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 Big Data Analytics and Patient Safety Risks Mitigation 102

 Health IT Management Segment—Market Opportunities 103

Surgical Care Management Segment—Competitive Landscape 104

 Surgical Care Management Segment—Key Vendor Solutions 105

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 Contents (continued)

Section Slide Number

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 Surgical Care Management Segment—Vendor Landscape 106

 Surgical Care Management—Notable Solutions and Case Examples 107

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 Surgical Care Management Segment—Market Opportunities 111

Environment and Workforce Management Segment—Competitive Landscape 112

 Environment and Workforce Management Segment—Key Vendor Solutions 113

Environment and Workforce Management Segment—Vendor Landscape 114

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Environment and Workforce Management Segment—Market Opportunities

Patient Safety—Growth Opportunities and Strategies for Success

 Patient Safety in Healthcare—5 Major Growth Opportunities

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 Patient Safety in Healthcare—Implementation Challenges and Strategies for Future Success 118

The Last Word 119

 The Last Word—3 Big Predictions 120

 Legal Disclaimer 121

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 Contents (continued)

Section Slide Number

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Appendix 122

• List of Exhibits 123

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The Frost & Sullivan Story 127

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 Methodology

Secondary Research

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The research team conducted a comprehensive review of secondary information sources including
Frost & Sullivan in-house databases, previous research services, online databases, trade journals, and
the Internet.

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The team then drew up a research plan on the basis of the research objectives and the resources
allotted. The research plan primarily consisted of the following:
Research Instruments

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The best research instrument suitable for this project was identified as an open-ended questionnaire,
developed separately for different types of target candidates such as manufacturers, distributors, end
users, and industry experts. These instruments were made, checked for clarity and thoroughness, and
whether they motivated the candidates to respond. Duplication and overlaps allowed corroboration and
cross-checking of data.
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Primary Research
Frost & Sullivan obtained primary data directly from industry participants. The analysts' finely honed
interviewing skills enabled the team to elicit valuable strategic information from industry participants.
Using Frost & Sullivan's uniquely designed research techniques, the analysts were able to obtain
information invaluable for identifying trends, threats, and opportunities in the marketplace. Primary
research is focused on interviewing key personnel of relevant companies and organizations.
Source: Frost & Sullivan

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 Methodology (continued)

'Bottom-up' Approach

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Frost & Sullivan used a 'bottom-up' methodology to assess the market, where each final market
measurement represents the sum of many detailed, bottom-rung measurements. Frost & Sullivan
calculated market size by interviewing (or analyzing annual reports of) industry competitors and deriving

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each company's revenues, average selling price, and unit volume within each defined market. To
calculate the total market size, the analyst team first cross-verified all measurements, then added them
to derive the final measurement of the total market.

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'Bottom-up' versus 'Top-down' Approach

The 'top-down' approach is to ask a few industry participants to estimate the total size of the market,
assess its growth rate, and make a forecast. These numbers are then averaged to make a final
projection. This methodology is commonly used, but is highly imprecise and can lead to serious
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problems when used to make strategic decisions. This approach assumes that the average industry
participant has a strong perception of market measurements of an entire market segment or industry.
Frost & Sullivan has found that this is often not the case. It is very rare for a spokesperson to accurately
portray the intricacies of his/her own company, let alone gauge the entire market segment or industry.
Frost & Sullivan has thus chosen a 'bottom-up' approach to market measurement.
Source: Frost & Sullivan

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Executive Summary

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 Key Questions This Study Will Answer

What is patient safety? What are adverse events? Who are the key stakeholders in the healthcare

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ecosystem?

What are the implications of patient safety for healthcare providers? What is the country-wise current cost

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burden, incidence, and mortality of each adverse event? What is the forecast cost burden?

Which adverse events are the top pain points for care providers? What are the current investment trends?
Which ones would drive future investments in the field of patient safety?

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How is the current competitive environment? How big is the industry? Which are the most impactful
vendors and their solutions addressing each patient safety concern? What is their future market
opportunity?
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Which are the most innovative and promising emerging solutions capable of disrupting the market? Which
are the new technologies entering the field? What are the convergence trends?

What are the most compelling future growth opportunities? What are the key strategies for future growth?
What are the implementation challenges?

Source: Frost & Sullivan

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 Scope and Segmentation

Market/Segment/Program Area
Scope
The market comprises 30 patient safety adverse events which impact care

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Study period 2016–2022 providers across the care continuum. These events are segmented as below.
Segment Adverse Events Segment Adverse Events
Base year 2016 • CAUTI
Patient Care
• Medication Safety • Vascular Catheter
Forecast period 2017–2022 Management
• Patient Falls Infections

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Adverse events
• Pressure Ulcers Surgical Care • Sepsis
Monetary unit US Dollars occurring due to
• Antibiotic Management • DVT/PE
lapses in
Resistance Adverse events • HAP/ VAPI
Geographic Coverage communication
• Wrong Patient/ and surgical • Incisional/ Organ Space
• US and care
Site/ Indication complications SSI
protocols while
• Europe • Patient Handoff occurring before, • Intravascular
the patient is in
Safety during, and after a Air-Embolism
o UK
o Germany,
o France
o Spain
o Italy
o Benelux (Belgium,
m the ICU, normal
ward, rehab, or
under primary or
long-term care.

Health IT
Management
Adverse events
•
•

•
•
Maternal Death
Patient Diagnostics
Safety

Alarm Fatigue
EHR/ EMR
Records Safety
surgical procedure • Foreign Object Post
Surgery
• Off-label Drug and Device
Use

Environment and • Burns/ Thermal Injuries

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• Lack of Patient Workforce • HCW immunization
occurring due to
Netherlands, Engagement Management • Electrocution
errors in a
Luxembourg) • Hospital Outcomes Adverse events • Medication/ gas/ oxygen
hospital‘s existing
Data Transparency during patient care misuse
o Scandinavia IT systems and
• PHI Compromise which affect both • Occupational Patient
(Sweden, patient safety
• Unnecessary ED patient and HCW Safety Hazards
need, which
Finland, could be best
Admissions as work-related • Poor Psychological Health
Denmark, • Medical Device/ injury or death of HCW
addressed via
Implants Cyber-
Norway) HIT systems
security

Source: Frost & Sullivan

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 6 Biggest Patient Safety Adverse Events in Healthcare
Detailed below are the six top opportunity areas driving future investments, with high potential for vendor
consolidation, appetite for disruptive technologies, and adoption potential of innovative solutions.

Medication Safety Patient Diagnostics Safety

The market has benefitted from innovative Improper diagnosis of acute conditions is the

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medication management solutions developed single biggest concern. Additionally, risks
over decades. High adoption potential still related to timely reporting of test results and
exists. Value chain and HIT integration and loss of specimen are sufficiently high and will
cost synergies will be the key. drive the market for lab management systems.

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Antibiotic Resistance
Healthcare systems are wide awake to the
menace. Limited next-gen antibiotic pipelines
have led to huge disruption potential for fast
and effective diagnostics and preventative

Sepsis

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Exceptionally high incidences lead to high
opportunities for diagnostics, therapeutic,
monitoring, as well as surveillance solutions
solutions.
Unnecessary ED Admissions
Ageing patient population, acute conditions,
and other comorbidities have necessitated
significant focus on remote care models, as
well as sensor-based, home-health devices,
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and wearable technologies

Cyber-security of Medical Device and

Patient Data Privacy
A fast-emerging area capable of significant
disruption in terms of adoption of newer
technologies such as blockchain

Source: Frost & Sullivan

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Patient Safety in Healthcare—Overview

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 Patient Safety—Key Concepts and Definitions

Key Takeaway: Patient safety essentially revolves around how hospitals and other healthcare organizations
protect patients from ―harm‖ or ―adverse event‖ resulting from ―preventable errors‖ of commission

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or omission during care delivery.

• Harm — ―impairment of structure or function of the body and/or any deleterious effect arising therefrom, including
disease, injury, suffering, disability and death. Harm may be physical, social or psychological‖ (WHO, 2004).

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• Patient Harm — any unintended and unnecessary harm resulting from, or contributed to by, healthcare. This includes
the absence of indicated medical treatment.

• Patient Safety Adverse Event — an incident during care that results in patient harm (The report focuses primarily on
adverse events which impact patient‘s safety. The only exception to this is ―Occupational Safety Hazards‖ which

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considers HCW safety as well).

• Error — failure to carry out a planned action as intended or application of an incorrect plan through either doing the
wrong thing (commission) or failing to do the right thing (omission) at either the planning or execution phase of
healthcare intervention. Errors may not necessarily cause harm.
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• Patient safety — the reduction of risk of unnecessary harm associated with healthcare to an acceptable minimum. An
acceptable minimum refers to the collective notions of current knowledge, resources available, and the context in which
care was delivered and weighed against the risk of non-treatment or alternative treatment (WHO, 2004).

Source: OECD, WHO, Frost & Sullivan

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 Patient Safety—Introduction

• Patient safety is a relatively newer focus area in healthcare that seeks to prevent harm to patients. The components of

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patient safety include nurturing a culture of safety to limit blame to individual providers, redesigning systems to create
high reliability, promoting transparency and learning from medical errors, and making healthcare systems accountable to
eliminate preventable harm. (Emanuel L, Berwick D, Conway J, et al. What exactly is patient safety?, 2008)

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• The global patient safety movement was first spurred by the Institute of Medicine‘s landmark report, ―To Err is Human‖.
Nearly two decades later, while progress has been made, harm to patients still remains a reality in health systems across
the world.

• Over the past few decades, a range of formidable patient safety threats have emerged. The Agency for Healthcare

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Research and Quality (AHRQ) and its counterparts in European countries (NHS England, for example), provide a list of
―Never Events‖ grouped into various categories such as surgical, product or device, patient protection, care
management, environmental, radiologic, and criminal.

Over and above the ―Never Events‖, a host of other patient safety issues such as antibiotic resistance and medication
errors impair the provision of efficient and effective care. Additionally, newer, health IT related patient safety issues have
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popped up over the last two decades concerning areas such as cyber-security of medical devices, EHR, care
management and coordination, as well as patient monitoring.

• While there are already a number of tools available to improve patient safety, the situation is complicated by an
increasingly ageing patient population, often with multiple chronic conditions, coupled with the evolution of new treatment
and care practices and healthcare systems partially impaired by the reduced ability to spend on these tools crucial for
patient safety.
Source: OECD, WHO, NHS, Frost & Sullivan

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 Patient Safety Adverse Events Across the Care Continuum

Patient Safety in Healthcare: Patient Safety Adverse Events Across the Care Continuum—
Market Segmentation, US and Europe, 2016

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Patient Care Health IT Surgical Care Environment and
Management Management Management Workforce Management

Medication EHR/ EMR CAUTI Burns/

Alarm Vascular Catheter

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Safety Records Thermal
Fatigue Infection
Wrong Safety Medication/ Injuries
Patient/ Patient Lack of Patient gas/ oxygen
Site/ Falls Engagement HAP/ misuse
Indication DVT/ PE
VAP Electrocution
Hospital Outcomes Traced to
Pressure Data Transparency Faulty

Hospitals/
ICUs
Home/
Extended
Care
Antibiotic
Resistance

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Ulcers

Patient
Handoff
Safety
PHI
Compromise

Unnecessary ED
Admissions
Incisional/
Organ/
Space SSI
Intervention

Intravascular
Air-Embolism
Sepsis
Healthcare
Worker
(HCW)
Immunization

Occupational
Physical
Safety
Tertiary
Care
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Maternal Medical Device/ Foreign
Ambulatory Centers Death Implants Cyber Object Post Hazards
Secondary
Outpatient Clinics security Surgery
Care

Patient Off-label Psychological

Diagnostics Drug/ Health of
GP/ Specialty Clinics Safety Device Use HCW
Primary
Diagnostic/ Path Labs Care
Patient Safety Issues
Care Setting Type Care Paradigm Type
Note: Definition and scope of each issue could be found in the respective segmental analysis section Source: Frost & Sullivan

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 Legal Disclaimer

Frost & Sullivan takes no responsibility for any incorrect information supplied to us by

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