Economic evaluation of active assisted living services - Part 1: Framework

IEC SRD 63234-1:2020 provides a descriptive framework and template for the economic evaluation of the implementation of technology-supported home healthcare or wellness services, or AAL services that support communications, transportation, etc. as defined in a series of AAL use cases. The financial analysis is completed from the point of view of the healthcare services funder, aged care services funder, or similar governmental or non-governmental organization (e.g. the government in a state-sponsored system or possibly a health management/health insurance company in a privately funded system, a private or governmental organization financing delivery of home support or specialized transportation services).
This document is structured to provide a means of capturing data for a Reference Scenario (typically the current means of providing care, often known as 'usual care', to the target patient population) to compare against an Alternate Scenario (the service or technology intervention) for an economic comparison. Standard economic measures can be estimated (using an electronic spreadsheet or other analysis tool) such as Return on Investment (ROI), Net Present Value (NPV), and Payback Period of the investment.
This document is applicable to all potential AAL services and AAL systems that may be developed or the development and manufacture of any of the underlying components (whether hardware or software).

General Information

Status
Published
Publication Date
18-Feb-2020
Drafting Committee
Current Stage
PPUB - Publication issued
Start Date
19-Feb-2020
Completion Date
28-Jan-2020
Ref Project
Standard
IEC SRD 63234-1:2020 - Economic evaluation of active assisted living services - Part 1: Framework
English language
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IEC SRD 63234-1 ®
Edition 1.0 2020-02
SYSTEMS
REFERENCE DELIVERABLE
Economic evaluation of active assisted living services –
Part 1: Framework
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IEC SRD 63234-1 ®
Edition 1.0 2020-02
SYSTEMS
REFERENCE DELIVERABLE
Economic evaluation of active assisted living services –

Part 1: Framework
INTERNATIONAL
ELECTROTECHNICAL
COMMISSION
ICS 03.080; 03.100.60 ISBN 978-2-8322-7847-5

– 2 – IEC SRD 63234-1:2020 © IEC 2020
CONTENTS
FOREWORD . 4
INTRODUCTION . 6
1 Scope . 7
2 Normative references . 7
3 Terms, definitions and abbreviated terms . 7
3.1 Terms and definitions . 7
3.2 Abbreviated terms . 8
4 General . 8
4.1 Document objective . 8
4.2 Economic evaluation process overview . 9
4.2.1 Alternate versus Reference Scenario . 9
4.2.2 Time period for analysis. 9
4.2.3 The cost of money . 9
4.2.4 The economic or financial indicators . 9
4.2.5 Multiple Alternate Scenarios . 10
4.2.6 Risks and critical success factors . 10
4.3 Document structure and how to use the framework . 10
5 Overview of the AAL service and analysis results . 11
6 Detailed description of the AAL service or intervention . 11
7 The non-financial benefits of the AAL service . 12
7.1 Overview. 12
7.2 Improving the health and wellness of the population . 12
7.3 Improving the patient experience with healthcare or wellness services. 13
7.4 Improving the work life of healthcare workers. 13
8 The financial/sustainability analysis . 14
8.1 Gathering the financial analysis cost data . 14
8.2 Reference Scenario costs . 14
8.3 Intervention/Alternate Scenario costs . 15
8.4 Intervention/Alternate Scenario health system costs . 17
9 Cashflow analysis and calculating the financial indicators . 18
9.1 A simple cash flow analysis . 18
9.2 Financial indicators . 20
10 Identifying risks and critical success factors . 21
11 Developing conclusions and recommendations . 22
11.1 Developing conclusions . 22
11.2 Recommendations . 22
Annex A (informative)  Financial evaluation data templates. 24
A.1 Overview of AAL service and analysis results . 24
A.2 AAL service description . 24
A.3 Reference Scenario – health system cost data . 24
A.4 Alternate Scenario – AAL service implementation costs . 26
A.5 Alternate Scenario – health system costs (resulting) . 27
A.6 Cash flow analysis . 28
A.7 Financial indicators . 29
Bibliography . 30

Table 1 – Overview of the AAL service . 11
Table 2 – Description of the AAL service. 12
Table 3 – Reference Scenario healthcare costs . 14
Table 4 – Alternate Scenario AAL service implementation costs . 16
Table 5 – Alternate Scenario health system cost factors . 17
Table 6 – Cash flow analysis table . 20
Table 7 – Financial indicators . 21
Table A.1 – Overview (template) . 24
Table A.2 – Description of the AAL service or technology (template) . 24
Table A.3 – Reference Scenario healthcare costs (template) . 25
Table A.4 – AAL service or technology implementation costs (template) . 26
Table A.5 – Alternate Scenario healthcare costs (template) . 27
Table A.6 – Cash flow analysis (template) . 28
Table A.7 – Financial indicators (template) . 29

– 4 – IEC SRD 63234-1:2020 © IEC 2020
INTERNATIONAL ELECTROTECHNICAL COMMISSION
____________
ECONOMIC EVALUATION OF ACTIVE ASSISTED LIVING SERVICES –

Part 1: Framework
FOREWORD
1) The International Electrotechnical Commission (IEC) is a worldwide organization for standardization comprising
all national electrotechnical committees (IEC National Committees). The object of IEC is to promote international
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rights. IEC shall not be held responsible for identifying any or all such patent rights.
IEC SRD 63234-1, which is a Systems Reference Deliverable, has been prepared by IEC
systems committee Active Assisted Living.
The text of this Systems Reference Deliverable is based on the following documents:
Draft SRD Report on voting
SyCAAL/153/DTS SyCAAL/165/RVDTS

Full information on the voting for the approval of this Systems Reference Deliverable can be
found in the report on voting indicated in the above table.
This document has been drafted in accordance with the ISO/IEC Directives, Part 2.
A list of all parts in the IEC SRD 63234 series, published under the general title Economic
evaluation of active assisted living services, can be found on the IEC website.

The committee has decided that the contents of this document will remain unchanged until the
stability date indicated on the IEC website under "http://webstore.iec.ch" in the data related to
the specific document. At this date, the document will be
• reconfirmed,
• withdrawn,
• replaced by a revised edition, or
• amended.
– 6 – IEC SRD 63234-1:2020 © IEC 2020
INTRODUCTION
Under the "Triple Aim" [1] concept (now "Quadruple Aim" [2]), a well defined, inclusive set of
objectives for new interventions, leading to improvements in the local and national healthcare
systems, consists of the following:
• improve the health of the population;
• improve the patients' (e.g. AAL care recipients) experience of care;
• lower (or hold constant) the per capita cost of care to the healthcare system to ensure
sustainability; and
• (the recently added fourth aim) improve the work life of healthcare providers (e.g. healthcare
professionals and AAL formal carers), clinicians, and other staff.
Economic evaluations of proposed new healthcare services and technologies involve the
assessment of the costs and effects of any interventions in the healthcare system and provide
input into the economic sustainability objective above. Where there are important health
outcomes that can be evaluated in monetary terms, a cost-benefit analysis can be undertaken
as a 'non-reference case analysis' (Alternate Scenario analysis) with details provided on the
derivation of the monetary value of the health outcomes. Appropriate economic evaluations will
provide evidence to address the financial considerations of proposed new interventions along
with the impact on health outcomes.
To achieve the Quadruple Aim objectives, all new technology-supported homecare or Active
Assisted Living (AAL) services (such as remote monitoring of patient physiological
measurements, in-home medication adherence monitoring and management, as well as mobility
aids and emergency reporting services) should be evaluated to ensure they not only improve
the quality of the patients' lives but also provide economic benefits greater than the cost of
providing the service. Without financial benefits that exceed the cost of the service to the health
system funder, or at the very least an economically neutral situation while improving patient
outcomes over usual care pathways, the services will not be sustainable – or the healthcare
services funder must be prepared to knowingly increase its cost per patient supported by the
system to achieve the population health outcomes.
Furthermore, health system funders may be presented with a choice of options for investment
in new or expanded services. In order to compare options from a financial costs and benefits
perspective (as well as their health outcomes), economic evaluations of the options will provide
an equal basis for comparison of the options.

____________
Numbers in square brackets refer to the Bibliography.

ECONOMIC EVALUATION OF ACTIVE ASSISTED LIVING SERVICES –

Part 1: Framework
1 Scope
This part of IEC SRD 63234 provides a descriptive framework and template for the economic
evaluation of the implementation of technology-supported home healthcare or wellness
services, or AAL services that support communications, transportation, etc. as defined in a
series of AAL use cases. The financial analysis is completed from the point of view of the
healthcare services funder, aged care services funder, or similar governmental or non-
governmental organization (e.g. the government in a state-sponsored system or possibly a
health management/health insurance company in a privately funded system, a private or
governmental organization financing delivery of home support or specialized transportation
services).
This document is structured to provide a means of capturing data for a Reference Scenario
(typically the current means of providing care, often known as 'usual care', to the target patient
population) to compare against an Alternate Scenario (the service or technology intervention)
for an economic comparison. Standard economic measures can be estimated (using an
electronic spreadsheet or other analysis tool) such as Return on Investment (ROI), Net Present
Value (NPV), and Payback Period of the investment.
This document is applicable to all potential AAL services and AAL systems that may be
developed or the development and manufacture of any of the underlying components (whether
hardware or software).
2 Normative references
There are no normative references in this document.
3 Terms, definitions and abbreviated terms
3.1 Terms and definitions
For the purposes of this document, the following terms and definitions apply.
ISO and IEC maintain terminological databases for use in standardization at the following
addresses:
• IEC Electropedia: available at http://www.electropedia.org/
• ISO Online browsing platform: available at http://www.iso.org/obp
3.1.1
AAL service
action or function of an AAL system creating an added value for customers
EXAMPLE 1 Configuration and maintenance of AAL systems.
EXAMPLE 2 Assistant systems to support the home environment.
[SOURCE: IEC 60050-871:2018, 871-01-04]

– 8 – IEC SRD 63234-1:2020 © IEC 2020
3.1.2
AAL user
person who uses or benefits from, or uses and benefits from, AAL devices, systems or services
[SOURCE: IEC 60050-871:2018, 871-02-05]
3.1.3
AAL care recipient
person who receives and consumes AAL care services
3.1.4
AAL informal carer
person who provides informal (or lay) services to the AAL care recipient
3.1.5
AAL formal carer
person who provides personal or homemaking services to the AAL care recipient
3.1.6
AAL system
for set of interrelated elements as a whole and separated from the environment
Note 1 to entry: A system is generally defined with the view of achieving a given objective, e.g. by performing a
definite function.
Note 2 to entry: Elements of a system can be natural or man-made material objects, as well as modes of thinking
and the results thereof (e.g. forms of organization, mathematical methods, programming languages).
Note 3 to entry: The system is considered to be separated from the environment and the other external systems
by an imaginary surface, which cuts the links between them and the system.
Note 4 to entry: The term "system" should be qualified when it is not clear from the context to what it refers, e.g.
control system, colorimetric system, system of units, transmission system.
[SOURCE: IEC 60050-151:2001, 151-11-27, modified – The domain "" has
been added. In the definition, "in a defined context" has been deleted.]
3.1.7
remote monitoring
condition monitoring and monitoring of persons from a distance by using telecommunication
[SOURCE: IEC 60050-871:2018, 871-04-27]
3.2 Abbreviated terms
AAL Active Assisted Living
NPV Net Present Value
ROI Return On Investment
CSF critical success factors
4 General
4.1 Document objective
This document provides a framework and template for the economic evaluation of the
implementation of technology-supported home healthcare, wellness or AAL services. This
analysis is completed from the point of view of the healthcare system or services funder (for
example, the government in a state-sponsored system or possibly a health management/health
insurance company or Accountable Care Organization in a privately funded healthcare system).

4.2 Economic evaluation process overview
4.2.1 Alternate versus Reference Scenario
The economic evaluation process proposed is a comparison of a Reference Scenario against
an Alternate Scenario, the AAL service or technology intervention, using a cashflow analysis
over an appropriate time period.
The Reference Scenario (also commonly referred to as a "base case" or "base scenario") is
typically the current means of providing healthcare or health services, often known as "usual
care", to the target patient population. This can be for a specific disease or more general care
as provided by the healthcare funder prior to the AAL service or technology being considered.
The Alternate Scenario describes AAL service or technology, the specific intervention or
benefits it hopes to achieve, and outlines the impacts on the delivery of healthcare. In an
economic evaluation context, these impacts would typically be financial cost savings to some
part(s) of the healthcare system.
In some interventions under consideration, the focus of benefits can be almost entirely on
population health outcomes (for example, improved quality of life for the AAL care recipient)
with limited or no financial benefits. In this situation, the expected health outcomes should be
validated and the objective of the analysis becomes largely determining the net cost to the
healthcare system of achieving these outcomes.
4.2.2 Time period for analysis
While a five-year time period of analysis is very common, an appropriate time period should be
determined based on specific aspects of the proposed intervention. For example, if components
of the equipment (hardware, software, etc.) require a significant investment and have an
expected seven-year lifecycle, then it may be more appropriate to complete a cashflow analysis
for the seven-year period.
4.2.3 The cost of money
This cashflow analysis should also include the "cost of money" or time value of money to the
organization proposing the new service. This cost of money could be interest rate on a loan by
the organization required to invest in the intervention or setting up the AAL service. A stricter
definition would be the opportunity cost (forgone income) of the money invested in government
bonds.
4.2.4 The economic or financial indicators
The proponent of the intervention or introduction of the service will gather the appropriate cost
details of the two (or more) scenarios and calculate standard financial measures (using an
electronic spreadsheet or other analysis tool). These measures should include, as a minimum:
• Return On Investment (ROI) – the gain or loss generated by an investment relative to the
amount of money invested (typically expressed as a percentage);
• Net Present Value (NPV) – the difference between the discounted future cash flows from an
investment and the original investment amount;
• Payback period – the length of time to recoup the initial investment in a project, product
development or service implementation.
A sustainable AAL service or intervention will have a positive ROI and NPV. The Payback Period
will vary based on the size of the initial investment required to implement the service and the
rate of economic benefits realized.

– 10 – IEC SRD 63234-1:2020 © IEC 2020
4.2.5 Multiple Alternate Scenarios
Comparing multiple Alternate Scenarios is common. If multiple Alternate Scenarios are being
evaluated or contemplated, they should each be compared to the Reference Scenario, the same
economic indicators determined, and the different Alternate Scenarios compared to each other
on an economic sustainability basis using the financial indicators described above.
4.2.6 Risks and critical success factors
The term "estimated" is used intentionally above. While it is assumed that the evaluator will use
evidence-based inputs in the economic model to the greatest extent possible, as a forward-
looking model there will always be an amount of uncertainty in future outcomes. Similarly,
critical success factors (CSFs) in the implementation of the service should be identified at the
outset.
For identified areas of uncertainty and critical success factors, the user of this template should
also:
a) identify which inputs are the most sensitive in determining economic results and either try
to reduce the margin of uncertainty in the values used in the calculation; or
b) conduct a sensitivity analysis by trying a range of potential values for these factors to
determine if the level or risk is too high to continue to implement the intervention
(for example, a positive, sustainable project could turn into a costly unsustainable service).
If a decision is made by the healthcare funder to implement a new service and/or underlying
technology, then special attention should be paid to the identified critical success factors during
the implementation stages of the project.
4.3 Document structure and how to use the framework
This document provides a descriptive framework and a set of templates. It is structured as a
step-by-step means of completing the evaluation process outlined above and coming to a set
of conclusions and recommendations about the proposed intervention. Users should complete
the set of blank templates contained in Annex A while progressing through the descriptive
aspect of the framework in the main body of this document.
Clause 5 presents a format for a summary overview or abstract (sometimes known as an
Executive Summary) of the AAL service, its analysis and recommendations.
Clause 6 recommends a format for providing a descriptive overview of the AAL service or
intervention.
Clause 7 describes a template for gathering the information required to complete the economic
evaluation, for both the Reference Scenario and the Alternate Scenario(s).
Clause 8 provides a means for calculating the economic and financial indicators.
Clause 9 describes critical success factors in more detail and proposes a set of considerations.
Lastly, Clause 10 suggests a format for developing final considerations and recommendations
which would be made as a result of the economic evaluation.
Annex A contains a set of empty templates for the user to complete an analysis.

5 Overview of the AAL service and analysis results
Table 1 provides an overview of the AAL service or system, the existing problem or need being
addressed, and a short description of the expected benefits and financial impact. More detailed
information is developed and presented in Clauses 6 through to 10.
Table 1 – Overview of the AAL service
Element Description of entry
Title The name of the AAL service or intervention.
Summary A short description of the AAL service or intervention.
Current need or existing Provide a short description of the need or the problem to be addressed by the
problem addressed intervention.
(For example, improved transportation or socialization among the aged population,
high usage of the acute care facilities by chronic disease patients, high incidence of a
particular morbidity, or limited quality of life among a particular population.)
Target Population – Describe the relevant characteristics of the addressable AAL care recipient population
Overview such as age range, health morbidities/conditions, geographic distribution, socio-
economic factors, addressable population size, etc.
AAL Service Description Provide a short description of the AAL service and how it would be used by the AAL
(intervention scenario) care recipients, their families (AAL informal carers) if relevant, and the supporting
clinicians (AAL formal carer or healthcare professional).
Expected benefits Provide a short description of the expected non-economic value (e.g. improved
population health or wellness outcomes) delivered to the AAL care recipients and
sustainable economic value to the healthcare system or aged care services system.
Financial impact Provide a short description of the financial impact of the implementation considering
factors such as total up-front investment required and financial result indicators such
as Net Present Value and Return on Investment if available.
Conclusion and As a result of the detailed analysis, state what conclusions have been drawn and state
recommendation(s) the recommendation for the implementation (or not) of the AAL service.

6 Detailed description of the AAL service or intervention
Table 2 provides a descriptive overview of the important aspects of the specific intervention
(e.g. remote patient monitoring or other tele-homecare or AAL service) being considered in the
economic evaluation.
– 12 – IEC SRD 63234-1:2020 © IEC 2020
Table 2 – Description of the AAL service
Factor Details
Current need or existing Describe the healthcare problem, aged care need, or other assisted living need to be
healthcare problem addressed (e.g. improving transportation or socialization among the aged population,
addressed high usage of the acute care facilities by chronic disease patients, hospital
overcrowding, high incidence of a particular morbidity, or limited quality of life among
a particular population).
Target Population – Describe the relevant characteristics of the target population (patients, aged
Description population, physically challenged, etc.) such as age range, health
morbidities/conditions, geographic distribution, socio-economic factors, etc.
In a research project, members of the control group and experimental (intervention)
group would be members of this population.
Reference Scenario Describe the current situation or "usual care"; how the assisted living problem is
currently addressed, or healthcare service provided, standard care pathway, etc.
AAL service description Describe the proposed service and how it would be used by the AAL care recipients,
or Intervention to be their families (AAL informal carers) if relevant, and the supporting carers or clinicians
evaluated (AAL formal carer or healthcare professional). An overview of any technology
deployed should be provided, the length of the deployment (if short term) and the
specific clinician or user interventions required.
Description of Expected Provide an overview of the expected non-economic value (improved population health
Benefits or wellness outcomes) delivered to the members of the target population and
sustainable economic value to the healthcare system (e.g. reduced hospitalizations
and/or in-patient days, reduced homecare nursing visits, etc.).
Patient Population – The maximum number of patients (AAL care recipient) that could be addressed by the
Overall Size AAL service within the proposed scope of the patient population described above.
Patient Population – Identify how many patients (AAL care recipients) the intervention proposes to address
Addressed by the (specific number or percentage of the identified patient population) distributed over
Intervention the years of the economic evaluation period.
Length of Evaluation The number of years considered in the economic evaluation (five years is typical).

7 The non-financial benefits of the AAL service
7.1 Overview
Clause 7 captures a description of the non-financial benefits provided by the AAL service.
These benefits follow aspects of the Quadruple Aim [2] and each area may or may not be
applicable to the specific implementation of the AAL service.
7.2 Improving the health and wellness of the population
The evaluation team should assess and describe the potential positive effects on the health of
the broader population, at least those for whom the AAL service will be deployed, the AAL care
recipients. A non-exhaustive list of potential population health benefits includes
• longer population lifespan;
• improved quality of life for a number of years across the population;
• reduced incidence of acute or chronic diseases or personal impact of chronic disease;
• improved target population safety;
• improved target population mobility or transportation, communications or socialization;
• improved efficacy of the healthcare services delivered (which may or may not also have an
economic sustainability impact);
• improved collection of healthcare and population data which will assist in the planning of
the healthcare system and services delivery.

NOTE Reduced usage of healthcare services by the AAL care recipients may be noted here, but resulting reduced
costs are identified in the financial analysis in Clause 8.
7.3 Improving the patient experience with healthcare or wellness services
The evaluation team should assess and describe the potential positive effects on the experience
of the AAL care recipients, as well their caregivers or AAL informal carers. A non-exhaustive
list of potential population benefits includes:
• reduced usage of healthcare services by the AAL care recipient, not from a cost impact, but
as an AAL care recipient experience improvement (for example fewer appointments to
attend);
• improved ability to access services and reduced wait times to receive healthcare or related
aged care services;
• feeling that the AAL care recipients own health has improved, also known as “patient
reported outcome measures”;
• eliminating the need to travel to receive care services (for example, by now receiving care
in their home rather than in a care clinic or hospital);
• reduced length of stay in hospital or other care settings resulting in faster return to work or
other personal life activities for the AAL care recipients (which will also have an economic
impact on the healthcare system);
• a better understanding of the care services being provided and the expected outcomes from
the care;
• reduced strain on the AAL care recipients' family members, AAL informal carers, because
of the assistance provided through the AAL service.
Improved AAL care recipient and family (AAL informal carers) experience with the healthcare,
aged care, or assisted living systems is usually measured through self-reported feelings of
satisfaction or other experiences with these systems, often captured through AAL care recipient
experience surveys.
7.4 Improving the work life of healthcare workers
The evaluation team should assess and describe the potential positive effects on the experience
of the workers in the healthcare system impacted by the AAL service. These workers may be
healthcare professionals (for example, physicians, nurses, therapists) and/or AAL formal carers
(personal support workers, personal attendants, etc.). A non-exhaustive list of potential benefits
to healthcare workers includes:
• simplified diagnosis and treatment of the patients;
• easier-to-use technology supports the delivery of healthcare or other care services, resulting
in improved (self-reported) user satisfaction;
• reduced injuries or potential for physical or psychological injuries that would be avoided by
the healthcare professionals (for example, avoiding a number of back injuries from lifting of
heavy care recipients);
• improved personal productivity (which may or may not have resulting economic benefits);
• improved satisfaction in the ability to deliver healthcare, personal support, or other services
to patients;
Improved healthcare professional and AAL formal carer experience with the AAL service is
usually measured through self-reported feelings of satisfaction with the service or technology
and their ability to deliver care, often captured through user (AAL user) experience and
competency surveys.
– 14 – IEC SRD 63234-1:2020 © IEC 2020
8 The financial/sustainability analysis
8.1 Gathering the financial analysis cost data
Clause 8 provides aspects for consideration in the development of the Scenario costs, both
Reference Scenario and the Alternate Scenario, for services in the Active Assisted Living
domain. Because AAL services generally involve health and wellness, they generally include
aspects of healthcare services delivery and in the Alternate Scenario include the costs of the
AAL technology and service implementation (as well as the, hopefully lower, healthcare delivery
costs).
Not all of these costs will be relevant to all AAL services, and perhaps there will be additional
costs not identified. In addition, while current technology costs have not been considered in the
Reference Scenario, it is possible that they should be included to provide the best
representation of the current healthcare costs (e.g. if the Alternate Scenario eliminates these
technology costs).
8.2 Reference Scenario costs
Complete Table 3 describing the costs of the current healthcare delivery processes for the
healthcare problem to be addressed. The factors identified below are for the evaluator's
consideration but:
• not all may be applicable to the AAL service or care scenario addressed;
• additional factors that are as or more relevant should be identified;
• if the AAL service or intervention is unlikely to impact (increase or decrease) any individual
cost factor, then it may be ignored.
All assumptions and sources of the information below should be noted.
Table 3 – Reference Scenario healthcare costs
Cost Factor Measure or Value Description
Period for Annual or per month The period of time over which the data is measured and used
Measures in the analysis. Annual measures are the most common.
In-patient Number in period The mean number of times the targeted population are
Hospitalizations admitted to a hospital for care.
Length of stay (LOS) – total or The number of days the measured population spends in a
average days hospital, typically the mean number of days per admitted
person is used, but the total number of days may also be
used.
Cost per in-patient day The mean cost per day of treating the person in the hospital.
Cost of Procedure (e.g. If a specific care procedure is required (e.g. a hip
operation) replacement), this is the typical cost of the procedure as
determined by the funder (typically the cost to the hospital or
as billed to the funder by the hospital).
Emergency Number in period (e.g. annual) The number of times the targeted population visits a hospital
Department Visits Emergency Department (ED) for care.
Cost per visit (average or total
The mean cost per ED visit as determined by the funder.
costs)
Remote visits or Number in period (e.g. annual) The number of times the targeted population receives a
clinician support (if remote visit (e.g. via two-way voice or video communications)
applicable) by a healthcare professional.
Cost per visit (average or total) The mean cost of the remote visit by the clinician.
OR (an alternate Number of Full Time Equivalent The number of healthcare professionals and/or AAL formal
way to calculate Employees (FTE) carers paid for by the funder to provide care to the population
remote visit costs) targeted by the AAL service.

Cost Factor Measure or Value Description
Cost per FTE (salary, benefits, The mean cost of the people providing the care. This cost
facilities, support, etc.) should include all costs including basic salary, cost to provide
applicable benefits (e.g. healthcare insurance, pension
contributions, etc.) and supporting infrastructure costs such
as information technology and dedicated office space (would
not include clinic or hospital space which would be included
above).
Home visits Number in period The number of times an AAL formal carer visits the patient in
the home to receive healthcare services (medical or personal
(This should be
support).
identified for each
type of clinician or
Cost per visit (time) The mean cost to the funder to provide home visits
home care worker
impacted.) Travel expenses of clinicians The mean cost paid for travel expenses of the healthcare
professionals or AAL formal carers to provide healthcare
(time and/or cost)
service in the home.
Primary care Number in period The number of times a member of the targeted population
physician visits visits their Primary Care Physician (healthcare professional
providing primary healthcare services).
Cost per visit (average or total) The mean cost per visit (or total costs for all visits in the
period) paid for by the funder for the primary care visit.
Specialist Number in period The number of times a member of the targeted population
physician visits visits a specialist Physician (a healthcare professional
providing specialty medical or health services).
Cost per visit (average or total) The mean cost per visit (or total costs for all visits in the
period) paid for by the funder for the specialist healthcare
professional visits.
Deferral of Number of days deferred The number of days a member of the targeted population is
admission to long- kept at home, out of a long-term care home (also known as a
term care nursing home), as a result of services under the current
services. This value is rarely required in the Reference
Scenario.
The mean cost per day paid by the funder of caring for a
Cost per day in long-term care
member of the target patient population in a long-term care
home (nursing home). This would not typically include any
costs as borne by the member of the population to be a
resident of the long-term care home.
Other To be determined Any other possible relevant cost factors to the care provided
in the Reference Scenario that would be impacted in the
Alternate Scenario should also be identified. Costs not likely
to be impacted may be ignored.

8.3 Intervention/Alternate Scenario costs
Table 4 captures the one-time and ongoing operational costs of the intervention/AAL service or
technology deployed for the AAL care recipient population. Identify and quantify those factors
as appropriate (not all will be incurred in all service scenarios).

– 16 – IEC SRD 63234-1:2020 © IEC 2020
Table 4
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