Software Development For Healthcare: Startup Secrets, Challenges And Solutions

By  Maham Qasim

February 14, 2022 5:22 pm EST

Software Development for healthcare is very challenging and exciting at the same time. Technological advancements around us have opened new possibilities to make people’s lives better by making diagnosis more accurate and effective, making treatment more accessible and affordable, and making operation rooms safer for patients. 

The market need for such products is never-ending as the healthcare industry grows at an unprecedented rate globally.

Software development for healthcare brings a huge opportunity to develop innovative products that improve people’s lives. This article will discuss various aspects of software development for the healthcare industry.

How Is The Sector Growing?

There are many drivers for the growth of software development in healthcare. According to a report by Allied Market Research, titled “Global Medical Imaging Software Market- Opportunities and Forecast, 2014–2020”, it is estimated that the global medical imaging software market was valued at $5.6 billion in 2013, which could reach $9.4 billion by 2020, growing at a CAGR of 6.4% from 2014 to 2020.

Healthcare innovation is another driver for the growth of this market. With the advancement in technology, new products are getting intr

oduced every day to make health care better and affordable for patients around the globe. Some examples of these innovations can be mobile health devices that monitor blood pressure or sugar level, wearable medical devices, technologies like big data, which provide insights into patient health.

How Challenging Is Software Development For Healthcare?

With all the opportunities coming up in this sector, building a successful product that provides value to users while making money is a very challenging task.

For any product to succeed, it should find a customer who will pay for the value provided by the product. This value is usually measured in financial metrics like AOV (Average Order Value), ARPU (Average Revenue per User). 

Since healthcare software products provide different solutions and monetization options, measuring these metrics can be difficult.

Developing helpful software products for this sector is a big challenge due to the following reasons:

  • The Healthcare industry is highly regulated globally.
  • Since it’s imperative to provide value while developing a healthcare software product, making the right decisions at earlier stages of product development can be critical.
  • Building a sustainable and competitive product for many small and big players in this sector is challenging.

How To Overcome These Challenges?

Given the complexities of this sector, entrepreneurs need to know what they are getting into before deciding to develop healthcare software products. We will now discuss various options which can be considered as part of the business model while developing such products:

Custom Software Development

Custom software development is an old-school approach to developing a healthcare software product. 

Entrepreneur hires developers by giving them detailed requirements, and they deliver the solution after some time which may vary depending on various features being provided in the product. 

The benefit of this model is that entrepreneurs have complete control over the attributes being developed, prioritizing the features by spending money accordingly.

Product as a service (PaaS)

In the PaaS model, entrepreneurs build a “platform” that other companies can develop their products. Almost all successful consumer internet companies follow this business model where they either provide the platform as a service or license their software as a product for others to use.

Product as an app (PaaA)

In this model, entrepreneurs build mobile applications and sell them to various healthcare companies either as a consumer or enterprise product.

This model has seen much success in various industries, including healthcare.

Product as a platform (PaaS)

In this model, entrepreneurs develop a “platform” that companies can use to build their products on top of their platform or build specific solutions for customers on top of the forum. This model is followed by many startups which enable their customers to create custom solutions on top of existing platforms. Some examples for this model are AWS (Amazon Web Services), Heroku.


As we have discussed above, many models can be considered when building such products, but it depends on an individual case-by-case basis. Hence, any strategy needs to be tested and validated before deciding on product development.

Maham Qasim

Maham is a copywriter and content creator who's always been drawn to the idea that there's more than one way of getting things done. Her writing career can be thought of as just another side hustle for her; when she isn't crafting content or reading Oscar Wilde, Maham often strategizes about how best to reach out with an engaging voice in this ever changing marketplace!

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