IEC SRD 63234-1:2020

Overview

IEC SRD 63234-1:2020 - "Economic evaluation of active assisted living services - Part 1: Framework" provides a standardized, descriptive framework and templates for conducting economic evaluations of Active Assisted Living (AAL) and technology-supported home healthcare or wellness services. The standard guides analysts to compare a Reference Scenario (usual care) with one or more Alternate Scenarios (technology or service interventions) from the perspective of the healthcare or aged-care services funder (governmental or non-governmental). Typical financial measures such as Return on Investment (ROI), Net Present Value (NPV) and Payback Period are supported and modeled using spreadsheet or analysis tools.

Key Topics and Requirements

• Scope and objective: Framework for economic assessment of AAL services (remote monitoring, adherence systems, transport/support services, etc.) aimed at funder decision-making.
• Reference vs Alternate Scenario: Capture baseline costs and outcomes (Reference) and the proposed intervention (Alternate) for direct economic comparison.
• Time horizon and cost of money: Define analysis period and discounting to reflect the economic value of costs and savings over time.
• Financial indicators: Guidance for estimating ROI, NPV, Payback Period and other cashflow-based metrics.
• Data collection templates: Annex includes templates for service description, cost inputs, cashflow tables and indicator calculations to ensure consistent, auditable analyses.
• Non-financial benefits: Document structures capture health, patient experience and workforce impacts aligned with the Quadruple Aim.
• Risk and critical success factors: Identify uncertainties and implementation risks to inform sensitivity analyses and recommendations.
• Applicability: Relevant to AAL systems and component development (hardware/software) where economic viability is assessed.

Practical Applications and Who Uses It

• Health system funders and payers (government agencies, insurers) use the framework for reimbursement decisions and sustainability assessments.
• Aged care organizations and service providers evaluating the business case for AAL deployments.
• Technology developers and manufacturers who need standardized economic evidence for market access or procurement.
• Procurement teams and policy makers comparing alternative AAL investments.
• Health economists and evaluators conducting cost-benefit or cost-effectiveness studies from the funder perspective.

Practical uses include preparing investment proposals, pilot evaluations, comparative option appraisals, and informing long-term funding decisions for home healthcare innovations.

Related Standards (if applicable)

• No normative references are cited within IEC SRD 63234-1:2020.
• The document is part of the IEC SRD 63234 series; consult the IEC webstore for related parts and the latest editions.
• IEC Electropedia and IEC publication resources are referenced for terminology and standardization context.