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Medical alert systems and personal emergency response systems (PERS) are becoming an important part of aging-in-place. While home care companies and HME providers are able to furnish most of the products and services that a senior needs to remain at home—from specialized home medical equipment to services to help maintain homes, prepare meals, shop, clean house, administer medicines and keep track of health—there is one critical difference between home care and nursing home or hospital care. When a patient is admitted into a hospital or nursing home, calling for help is only a button away. In the home, where constant care is not always present, a medical alert system or PERS can serve the same purpose. Many times, family members are acting as caregivers while still working and taking care of their own homes and lives. This is a tremendous responsibility, and family caregivers often worry about times when they cannot be present. An alert system can notify family or medical personnel immediately so that the situation can be addressed. This leaves the family to go about their business and still be available. The medical alert system will certainly help in a medical emergency, but there are many circumstances that merely require a bit of assistance from a family member or friend. In these situations, a senior can press the medical alert button and simply tell the emergency operator that he or she needs a caregiver. The emergency operator will contact the caregiver for assistance. Home care companies can use medical alert systems in the same manner. They can monitor patients and be available in the same way, offering 24-hour service and security. Medical alert systems also offer a retail avenue for HME providers, as they can be sold over the counter. There are more than 40 million seniors in the United States, and aging baby boomers are increasing this number, as 10,000 adults reach 65 years old every day. This trend will continue until 2030. At present, there are approximately 2.5 million medical alert systems in use in the U.S. With these numbers, the potential for profit is obvious. There are two types of medical alert systems on the market today—monitored and non-monitored. While both can summon help, each functions differently. This allows home health providers a choice in marketing medical alert systems to fit a particular business model.

Monitored Medical Alert Systems

Monitored systems are connected to a central dispatch center. When the button is pushed, it connects directly to an emergency operator, who may then react personally to the patient’s request. The operator can dispatch the EMS and/or contact a family member or friend. It is 
a controlled situation and only the people or services requested will be contacted. For example, if the senior just needs her daughter, the emergency operator will call the daughter and give her a briefing of the situation before she responds. If the senior needs the EMS, the operator will dispatch the proper authorities and then contact a person on the emergency list to make them aware of the circumstances. These situations are controlled by a person trained in handling emergencies. A monitored medical alert system is typically paid for monthly. Home care companies or HME providers that offer this service to patients or customers can build a very nice recurring monthly income business model. This model is especially attractive to a company that offers other recurring services in the home because the medical alert system can simply be included in that monthly fee.

Non-Monitored Medical Alert Systems

These systems are programmed to make emergency calls automatically. Typically, a non-monitored system can be programmed with up to four contact numbers. When the button is pushed the system begins calling the emergency numbers in sequence. It will also dial 911 if no one answers so that the patient is not left unattended. If one of the emergency contacts answers, and within the conversation it is determined that EMS is necessary, the contact person can dial 911 from their phone and it will connect the senior directly. Non-monitored systems are ideal for customers who do not wish to pay monthly for a service but still need the ability to call for help. The one-time charge for this type of system is typically between $295 and $395. The profit margin at these prices is normally between 70 and 130 percent. This is a perfect type of medical alert system to be offered by HME providers or health care companies that want to market the product to customers, but not be involved in monthly billings or service. Medical alert systems give patients and customers not only the equipment or service they may need, but also the ability to age in place with peace of mind. They allow caregivers to monitor activities without giving up their own freedom. And they can provide a substantial revenue source for both home health providers of all facets. This article is the first of a seven-part home monitoring and PERS series. Six segments will focus on a particular aspect of the market to provide the insight and resources necessary for success. The final article will answer reader questions; direct yours to [email protected] with “Home Monitoring Series” in the subject line. Read the other articles in this series here.