Guide

Custom Healthcare Software Development 101: What Providers Must Know

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Introduction

More than a decade ago, investor and software engineer Marc Andreesen famously wrote that “software is eating the world.” And in the healthcare industry, software all but runs the world. It provides patients with access to a wealth of personal medical information and helps them take command of their health journey. A variety of tools and features assist clinicians in their pursuit of positive outcomes. And solutions designed for hospital administrators automate operations and make organizations more efficient, easing the burden on already overworked staff.

As more people carry smartphones and other connected devices, providers increasingly use advanced telehealth capabilities like remote patient monitoring, and more and more medical records go digital, the demand for healthcare software will only accelerate. According to Acumen Research and Consulting, the global healthcare IT market will grow from $142.3 billion in 2022 to an astounding $707.7 billion by 2032.

That said, finding the right software solutions for your healthcare organization is no easy task. Every medical center has specific needs and challenges, and now more than ever, they’re discovering the benefits of custom healthcare software development. Luckily, there are medical software developers ready to listen and help. Here’s what you need to know and how to identify the best fit.

Chapter 1

Defining Custom Healthcare Software Development & Its Value

The IT environment in healthcare is getting increasingly complex as the industry rapidly changes and digital innovations push the boundaries of knowledge and the limits of what’s possible. Advanced technologies like AI and robotic process automation (RPA) are being embraced and enhancing care delivery, while myriad technologies from IoT and medical devices to telehealth and electronic health records (EHRs) are producing massive amounts of data that can be used to make significant improvements.

All of this can become overwhelming as providers continue to keep a razor-sharp focus on ensuring good patient experiences and improved health outcomes. That’s where custom healthcare software development becomes critical, offering tailored solutions designed with the end user in mind.

The Growing Need for Custom Healthcare Software Development

Data is coin of the realm in healthcare now. The industry generates some 30 percent of all data worldwide and its impact is felt everywhere, from helping leaders make faster and better-informed decisions to fueling change in a heavily regulated and compliance-sensitive industry to aiding in the transition from a fee-for-service-based business model to one that emphasizes value-based care.

Off-the-shelf software falls short in such a dynamic environment, unable to address requirements specific to healthcare organizations. Custom healthcare software development can create solutions to fill the gap.

It involves designing applications that meet the specific medical or business needs of a healthcare facility, with apps built in-house or by a custom healthcare software development company.

Custom software addresses a range of challenges, such as enabling an organization to run more efficiently with solutions like EHRs and health information systems, safeguarding sensitive patient data through security systems, and improving patient outcomes and experiences via tools like remote patient monitoring and schedulers.

Custom healthcare software development is a key part of a booming global medical software market that is expected to more than double from $42.1 billion in 2021 to $104.1 billion in 2030.

Custom Software for the Unique Healthcare IT Environment

The nature of the healthcare industry makes successful technology deployment a challenge, however, with a lot of demands on the software. It needs to comply with a host of regulations, including HIPAA (Health Insurance Portability and Accountability Act), ISO 13485, and the EU’s GDPR (General Data Protection Regulation). It needs to communicate with other software systems that may use different protocols and standards.

Patients’ privacy must be protected, so security has to be included in every part of the development lifecycle. Solutions must be flexible to cover multiple use cases and need to scale as the organization grows. They also have to be easy for both healthcare professionals and patients to use.

Custom healthcare software development companies are well-equipped to meet these demands. They use agile development techniques and open-source tools to accelerate solution delivery and reduce cost – and work closely with the healthcare organization to ensure the software complies with regulatory requirements and that security is addressed at each development stage.

Custom Healthcare Software Development Companies Can Smooth the Path

The process of custom healthcare software development is a heady mix of code creation and customer interaction, with a lot falling on the shoulders of the developers. They must be able to understand the needs of the healthcare organization, focus the design of the solution on those needs, and define and outline the software architecture that best addresses those needs, while ensuring the data is secure.

The custom software also needs to fit easily within the larger picture and communicate with other systems. It can’t be an island unto itself. Done correctly, custom healthcare software development can be a boon to hospitals, which get apps tailored to their needs, and patients, who get a vastly improved experience.

Outsourcing to a Custom Healthcare Software Development Company

Healthcare organizations can do this development themselves, but it’s not easy or cheap. An in-house team needs skilled developers, equipment, and the space to do its work.

Custom healthcare software development companies shoulder all those costs and needs. They draw from skilled talent around the world, but at a lower cost. Estimated costs for a six-month software development project can run as high as $388,000 if done in-house. The number drops to about $200,000 if it’s outsourced.

Why You May Need Medical Software Development

In healthcare, custom medical software development is being applied to all areas — patient care, operations, human resources, etc. While your organization may have already identified several opportunities for improvement, knowing how and when to proceed with technology solutions can be difficult.

Reasons to Embrace Software Development in Healthcare

With that in mind, here are nine signs that will help you tell if it’s the right time to prioritize medical software development:

Poor data management

Data is the lifeblood of healthcare facilities, but there’s a lot of it, it’s stored in different places, much of it is highly sensitive, and methods for collecting it must comply with regulations and requirements. Interoperable solutions can connect the dots for care teams and help them best utilize available information.

Low net promoter score (NPS) and patient experience survey results

Over 90% of patients participating in a study said their experiences at hospitals influence their future personal healthcare decisions. User-friendly patient engagement software can help support those experiences.

Overworked staff and burned-out clinicians

A U.S. Health and Human Services report found burnout was reaching 35%-54% among nurses and physicians. Bespoke customer relationship management (CRM) software can digitize healthcare workflows like billing and telehealth.

Siloed departments and service lines

EHR systems are key tools for breaking down silos that lead to poorer patient care, higher costs, and duplication of services.

Barriers to medication access

Insurance coverage and costs make getting medication difficult. EPrescription software lets medical offices directly send prescriptions to pharmacies and medication management software streamlines in-office processes like tracking and ordering.

Difficulty scheduling appointments

Medical scheduling software can automate appointment scheduling for patients, making it easier for them to set, change, or cancel doctor visits. It’s also simpler for physicians to manage their agendas.

Laboratory delays and errors

Laboratory Information Management System (LIMS) software can manage such lab functions as collecting samples and allocating resources to managing patient data, conducting tests, and generating reports.

Ineffective billing and reimbursement practices

Problems like miscommunication and overly complex operations can cost hospitals money and time and lead to frustration for patients. Software can automate billing, invoicing, and reimbursing and give patients more visibility into their healthcare payments.

Lack of system integration

Despite the recent stabilization of operating margins, healthcare operators struggle with mounting fiscal challenges. Software-based healthcare integrations can standardize data flow between disparate systems like EHRs and revenue management software.

Chapter 2

Understanding the Ins & Outs of Custom Healthcare Software Development

The healthcare IT industry is a complex beast that serves many stakeholders, from patients and doctors to administrators, pharmacists, and staff. And for leaders without a background in technology, it may sometimes feel like that beast could swallow you whole. There are many different types of software out there, offering a variety of features, and lots of terminology about software development and processes being bandied about. In this chapter, we’ll give you the tools – nay, weapons – to cut through a mountain of information and identify what works best for your company.

6 Examples of Custom Software Development for Healthcare

Digitization in healthcare drives greater efficiencies, helps improve health outcomes, and lets doctors spend more time doing what they do best: take care of their patients. With digitization, sensitive health data is better protected, and healthcare becomes more personalized.

Custom software development for healthcare is elemental to all of this. The software is built around the pressing challenges identified by healthcare workers and patients and has capabilities that cannot be met by off-the-shelf products.

What Software Development in Healthcare Can Produce

So, what do we mean specifically when we talk about software development for healthcare?

Here are a few examples:

1 Appointment Booking and Scheduling Software

This software streamlines the scheduling process, offering patients an easy and fast way to make, change, or cancel appointments. For hospital staff, it means fewer calls, gives providers control over their calendars, and lets administrators plan staff allocation to reduce patient wait times and minimize the number of no-shows.

2 Medical Diagnosis Software

One common ask for a software developer in healthcare is to create a platform that supports clinician efficiency. This solution uses automation to analyze copious amounts of data such as health histories, test results, and medical reports, driving precision of clinical diagnoses. Physicians’ decisions are made faster, the time to patient treatment is reduced, and health outcomes and patient experience are improved.

3 Medical Billing Software

This software automates some of the most complicated and time-consuming processes in healthcare, which can mean improved reimbursement rates and more optimized revenue – both critical goals for a healthcare industry still regaining its footing after the most difficult financial year for healthcare facilities since the pandemic started in 2020.

4 Software-as-a-Medical-Device Solutions

In software development for healthcare, solutions can serve multiple roles. They can be used for medical purposes – like software-as-a-medical-device – without being part of the hardware. There are also applications that are software-in-a-medical-device, like apps that control the delivery of insulin in an insulin pump.

5 Clinical Trial Management Software

Conducting clinical research is a key part of what many healthcare institutions do and software is a key part of this, managing and tracking activities, supporting how the research is reported, and simplifying billing.

6 AI and Robotics Systems

AI is critical in the IT ecosystem and a key focus in software development for healthcare. In consumer mobile apps, AI and IoT are helping people develop healthier lifestyles. AI is also being used to detect and diagnose diseases earlier and more accurately. AI-driven predictive analytics can drive clinical decision-making and help clinicians take a more comprehensive approach to managing diseases. Robots help people remain independent longer and put off hospitalization and nursing care.

Common Features in the Best Custom Healthcare Software Solutions

Leaders need to make smart decisions about purchasing and implementing new software, balancing their organization's demands with budgets and capabilities. Let’s dive into a few key considerations.

Novel Healthcare Software Features

Some healthcare software solutions are fundamental at this point. As of 2021, 78% of office-based physicians and 96% of non-federal acute care hospitals had adopted a certified EHR program.

As digital tools become increasingly commonplace during care journeys, there are a few important healthcare software features to keep in mind:

EHR integration

In an integrated EHR environment, all medical practitioners can quickly access medical records. Interoperability also supports more streamlined administrative and clinical workflows, and as patient-reported information is routed to these platforms, engagement and onboarding could improve.
Appointment scheduling and reminders

Effective healthcare software solutions automate these traditionally manual and laborious tasks of scheduling, rescheduling, and canceling appointments and streamlining wait times, freeing providers and frontline staff to spend more time with patients.
Automated update notifications

These are essential ways to communicate with patients. They’re automated real-time messages that pop up on the patient’s mobile device, reminding them about appointments, medication schedules, fitness goals, or care-related information.
ePrescriptions and prescription tracking

Taking the wrong medications or at improper doses can have life-threatening implications. EPrescribing software lets providers electronically file accurate, error-free, and understandable prescriptions directly to the pharmacy, while tracking apps enable hospitals, providers, and individuals to record the prescription fill, dosage, and medication frequency.
Single, easy-to-use dashboards

Healthcare facilities are awash in data and hospital staff need insights from myriad sources to effectively care for patients. A single dashboard captures, integrates, and visualizes real-time data and trends for easier analysis.
Analytics and reporting software

These solutions pull in data from multiple sources, crunch it, and deliver insights, trends, and other data-driven information to help healthcare providers deliver care, support better clinical outcomes, and engage patients. For administrators, the information can mean more efficient and less costly operations.
Reviews and ratings

The engagement between care teams and patients directly impacts the ratings and reviews the organization gets. Software for websites or mobile apps that let patients give feedback about their care and experiences can help providers and leaders see where they can improve.
Health trackers and symptom checkers

The more a provider knows about the patient and their condition, the easier it is to diagnose and create a treatment plan. Health trackers are mobile apps patients use to record and manage their lifestyles. Symptom checkers record a patient’s symptoms. Together, they give providers more accessible real-time insights about their patients, who also have more control over their care journeys.
Telehealth options

Telehealth comes in numerous forms, with two-way video interaction between provider and patient the most well-known. With virtual access to providers, patients get quicker access to care and more convenient consultations with reduced stress. Providers see better patient outcomes, fewer hospital re-admissions, improved patient satisfaction, and fewer cancellations.
Complex care management

Some care journeys require a visit to the doctor and a swift recovery at home. Others, like chronic conditions, can involve multiple providers, routine appointments, and more robust ongoing treatment plans. Recent innovations, like patient outreach software, assist with these more complicated pathways by simplifying and automating various aspects of remote patient engagement.

Applications and features are just one consideration when weighing your software options. Healthcare leaders should also understand some of the most common ways that software is developed.

Exploring Software Development Options From No-Code to Custom

For years, organizations could buy software from a vendor or build an app from scratch. That was it. But that’s changed. Low-code and no-code programs are modular platforms where developers drag and drop components to create an application.

All these methods – no-code, low-code, and custom – play a role in healthcare software development.

Let’s take a deeper look at how these are applied across healthcare.

No-Code Development in Healthcare

No-code app development is a fast and efficient way for organizations to create white-label applications without having to write any code. Instead, they use visual interfaces and drag-and-drop tools to build the software, all helped by no-code development platforms that offer pre-built templates, components, and modules.

The user-friendly nature of these platforms also means users with no background in complex programming languages can easily create useful apps. For healthcare facilities still facing financial challenges from the fallout of the pandemic, being able to implement necessary software quickly and affordably is critical.

Healthcare use cases of no-code development range from tools for managing patient and hospital data and automating workflows to managing clinical trials, creating onboarding systems, and building patient portals.

The benefits are many, from a shallow learning curve for developers, cheaper app development, faster time to market, and improved data management. Those need to be weighed against concerns about security, scalability, and limited customization.

Low-Code Development in the Clinical Context

Like the no-code method, low-code platforms are rapid application development (RAD) programs that use visual building blocks – like drag-and-drop tools – to drive automated code generation.

Low-code development differs from no-code in how it comes together: Builders can add code into the mix, meaning its target users are developers rather than business operators. It still simplifies the development process, but it requires more skill.

Low-code and no-code programs can limit customization, scalability, integration, and security. In addition – unlike with no-code tools – healthcare organizations must invest in commissioning or hiring skilled developers to create low-code solutions.

Custom Healthcare App Development

Custom development is a departure from the other two methods, with the goal to design software solutions that meet specific needs of the healthcare facility. These are not intended for cookie-cutter use cases, and often solve unique challenges specific to particular organizations.

Custom healthcare software needs to grow and adapt with the hospital, scale as needed, and integrate with other software systems, such as EHR and billing platforms.

Custom software comes at a cost, with healthcare organizations needing to invest in development teams. It’s more expensive than no-cost, low-cost, and even commercial off-the-shelf (COTS) software.

However, the price can be reduced by finding a partner with robust services. The burden of custom software development falls on the vendor, such as expenses associated with hiring programmers, complying with regulations, and integrating with other hospital systems.

The Case for Agile Software Development in Healthcare

Regardless of what method they’re using, healthcare software developers need to be flexible, to follow changes in what leaders consider critical needs and produce solutions that align with those needs. Efficiency is the name of the game, and it’s a cornerstone of agile methodology, which has been adopted for project management across many sectors but is rooted in software development.

Agile software development in healthcare provides the foundation for developers to deliver more and better-quality tools, creates room for flexibility in project scopes, helps mitigate risk, and ensures final products are reviewed sufficiently and meet compliance requirements.

Fast Software Development – Healthcare’s Stake in an Agile Approach

Agile software development in healthcare is critical to solving a litany of challenges by starting with a core problem and introducing additional capabilities that enhance operations, care delivery, and patient experience and engagement. It’s also a fit for mobile healthcare software development for telehealth and other use cases.

Here's how:

Foster an inclusive culture of collaboration
All parties should be involved from the start to gather input and ensure the process aligns with the overall vision of the project.
Get as many perspectives as possible
Collaboration is more effective when projects are guided by cross-functional teams that bring varied perspectives. The exchange of ideas is enhanced and the interests of different users are not lost.
Consider how to approach large projects in phases
There are a lot of steps in creating a piece of software. Break down larger projects into smaller, manageable pieces, which developers can map to show the structure and relationships between different components of a system and what needs to be done when.
Prioritize security measures
The regulatory landscape in healthcare is so stringent around security and patient privacy that it’s crucial to document compliance work as part of agile processes. Access controls, encryption, patch management, and data backups are just a few of the essential security considerations when developing applications.
Test and measure often
Agile is a dynamic process that, in the healthcare context, is aimed at rapidly improving operations and patient experience. Quality assurance is grounded in gathering feedback and frequently testing throughout the development lifecycle.
Implement CI/CD practices
Continuous integration and delivery (CI/CD) can supercharge the process. Agile focuses on collaboration and development teams, while CI/CD can accelerate delivery. It automates many of the steps in the development process and offers a practical way to break large projects into smaller parts.
Offer training and support to end users
Project leaders will need to find engaged and tech-savvy people willing to learn the tool and act as advocates among their peers. There also should be comprehensive training resources and ongoing support and maintenance.

Chapter 3

Exploring Custom Healthcare Software Development Partnerships

Software is the common thread that connects every component of the modern healthcare facility, a complex environment that balances provider needs and patient demands, privacy and security controls, regulatory and billing challenges, workflows, and integration.

That’s why finding the right custom healthcare software development partner, with the crucial blend of programming expertise and consulting services, is crucial. They not only need to be able to create the solutions to fit an organization’s needs, but possess the vision and skill to understand those needs, map out a strategy, and act on it.

Finding the Right Software Developer in the Medical Field

Much of this starts with finding a software developer in the medical field that isn’t just the best, but the best fit for your organization. Given how many healthcare software development companies operate in such a fast-growing market, finding that needle in the haystack isn’t easy.

Healthcare software developers who deliver products late and over budget not only affect an organization’s technical infrastructure but could also cause ripple effects that runs across employee experience, patient satisfaction, and hospital operations, costing both time and money.

There are some important things to look for that can help you make the right choice.

What Makes a Healthcare Software Development Company the Right Fit?

Here are some thoughts and questions to consider when searching for that one ideal software developer in the medical field:

Expertise

Has the developer worked in a similar environment that had the same facility size, number of employees and patients, and technology needs? Do they understand the operational logic behind their product? Are they experienced in healthcare? To get the full picture of their past work, secure testimonials, case studies, and references.

Collaboration

Gauge their communications skills and collaboration approaches. Who do they want to speak with? How available are they for your questions and concerns?

Technical expertise

Any experienced software developer in the medical field is going to come with a history of developing certain technology stacks and using specialized skills. Make sure they align with your needs and that their technology integrates with the applications and systems you have running.

Customizability

Healthcare facilities have specific needs that COTS software won’t address. Because of this, a custom healthcare software development company is the way to go. Make sure solutions created by the developer can be used for multiple use cases and that they’re user-friendly.

Training

How will the developer ensure providers and hospital staff develop the skills to run the software? Have a training roadmap ready to go. Who will be trained and who will do the training? Does it need to be done on-site?

Compliance and security

Healthcare facilities need to secure the sensitive data they hold and comply with a growing cadre of regulations, from HIPAA to GDPR, so a slip in either security or compliance could have dire consequences for the hospital, its patients and staff.

Support and maintenance

Once the software is developed, what services does the healthcare software developer offer to keep things up and running? A comprehensive software maintenance agreement, which includes technical support and updates, is a principal factor.

10 Tips for Working With Your Healthcare Software Development Agency

Running a healthcare organization isn’t simple – and despite its benefits, technology has made the IT ecosystem more complicated. It can put administrators who have deep expertise in the high-stakes role of choosing the right healthcare software development agency.

That’s why the process of selecting a proven medical software development company is so crucial. Leaders who aren’t experienced in IT may feel out of their depth technologically when hiring a hospital software development company.

Partnering with a Hospital Software Development Company

Fortunately, there are steps executives can take to reach a comfort level with choosing the best medical software development company.

1 Meet the Team

This is going to be a partnership, so know your partner and give them the chance to learn about you. Meet them in-person if possible, find out who will be involved with developing your solution, and understand their roles. Whatever hospital software development agency you choose will not only write code but will also be an adviser.

2 Provide Ample Information

Developers will build software for your healthcare facility, so they need a 360-degree understanding of your organization. What are the challenges your teams face? Who are the stakeholders and end users who will be using the final technology? What are their pain points and the project’s end goals? The more information you can supply, the better.

3 Clearly Communicate Your Needs

Define your expectations and goals for the project. After that, you can collaborate more effectively with your software development vendor.

4 Understand the Costs

You may not want to pay a high premium, but going with the lowest bidder doesn’t always help meet your software goals. Some estimates put the average software project cost at $15,000 to $150,000 and required time at 1,000 hours. Find the right healthcare software development agency that can create the solution you need at the right price and with payment terms.

5 Conduct a Risk Assessment

Initial results might fall short of expectations, and solutions may need adjustments. A risk assessment will help you and the hospital software development company identify potential problems with the technology and address them.

6 Protect Your IP

A nondisclosure agreement (NDA) is a must with any healthcare software development agency you bring on.

7 Consider a Project Manager

If you don’t know a lot about IT or software creation, bringing on a project manager is a smart move to oversee every step.

8 Ensure Developers are a Call Away

A report by tech services company Commit estimated that offshoring software development positions would jump by 70% between 2022 and 2023. That’s why it’s crucial to have proximal points of contact you can access in case issues pop up.

Conclusion

A Trusted Partner for Custom Healthcare Software Development

The IT landscape in healthcare is broad, ever-changing, and will require continual investments of time, resources, and money. But we can’t lose track of the central reason healthcare organizations exist: ensuring the best patient care.

Elxo’s custom software development capabilities and our healthcare IT consulting services understand that great patient care will have positive ripple effects throughout a healthcare facility. We take our time to speak with your team members, from leaders to frontline workers, to get a complete and accurate view of the biggest opportunities for improvement and identify solutions that can work immediately and scale across service lines.

We believe strongly in the benefits of patient empowerment through education, which paves the way for stronger and more inclusive care, and thoughtful management of complex care paths that considers both the informational needs of patients and the operational challenges that providers must overcome.