How to Choose a Healthcare Software Development Company: A Step-by-Step Guide

The pressure on healthcare executives to deliver efficient, patient-centric care while maneuvring with the ever-present need to cut costs is colossal. That’s why most medical professionals count on technology to cope with those challenges, and that’s a trend toward which the whole industry feverishly accelerates. Yet, a poorly executed medical software project and the wrong choice of a healthcare software development company can have disastrous consequences for your practice and patients. You don’t want to spend thousands of dollars to end up with a mediocre healthcare solution that disrupts your operations or compromises patient care.

So, how does one find the ideal technology partner who truly understands one’s organization’s complexities? That’s a good question we tried to answer in this blog. We understand that it’s a pivotal decision, so we covered all the important aspects and provided some tips to help you select the right custom healthcare software development company. Let’s get things underway.

200+ companies from 25 countries outsourced software development to Relevant

We provide companies with senior tech talent and product development expertise to build world-class software. Let's talk about how we can help you.

Contact us

Steps to Select a Credible Healthcare Software Development Company

Numerous firms claim to be the best experts in healthcare software development. Hence, it’s not an easy task to choose from the myriad of options that perfect one healthcare software development services company. The choice of the top development agency is even harder as the quality of the software they build impacts your internal medical processes and patient care. In this regard, we made as detailed a guide as possible to help with this critical decision.   

Step 1. Understand Your Healthcare Software Needs

To start, it’s crucial to clearly understand your needs and wants about medical applications. This may sound obvious, but believe us, very often, healthcare professionals turn to us with a broad requirement to “improve patient care” or “enhance operational efficiency.” They often don’t really know the specific problems they aim to solve. The more clearly you define the needs, the easier it will be to find a healthcare software development company that can deliver exactly what you require.

Identify Key Features and Functionalities

Once you understand your needs, list the key features and functionalities your medical software must have. The following features are good to have for any practice:

• Electronic Health Records (EHR) Integration. The software integration with EHR should be flawless so that the patient data is easily accessible and synced. That’s incredibly vital for efficient patient care and accurate record-keeping. 
• Telemedicine Capabilities. With the rise of remote healthcare, the ability to deliver care virtually through video consultations and remote patient monitoring became a necessity rather than just a nice-to-have. 
• Patient Management Systems streamline those time-intensive tasks (appointment scheduling, patient communication, and record-keeping) and drive efficiency.
• Data Security and Compliance Features. Security and compliance are the two things hospitals can’t afford to economize on. Your software must comply with HIPAA and other relevant regulations, and you must adopt strong security measures to protect patient information.
• User Interface and Experience (UI/UX) Requirements. The first rule of a good software design is it should be easy to use for end users. Neither patients nor medical staff have time to figure out how to use a healthcare app. So, yes, it’s important to build a user-friendly, customer-focused UI/UX design.

Budget and Timeline Considerations

Budgeting is the most sensitive and complex aspect when it comes to choosing healthcare software development companies. The prices of services range a lot so you should know your financial limits and clearly define project requirements. 

Determine Your Budget

The scope of your project—what features and functionalities you need, the complexity of the integration, and the level of customization required—is the main factor that influences the cost of software development. Remember, high-quality healthcare software comes at a price, and it’s crucial to invest wisely to ensure the best outcomes for your organization and patients. Follow these tips to allocate a budget wisely:

• Research Market Rates: Look into the average costs for similar projects in the industry to get a ballpark figure.
• Prioritize Features: Identify the must-have features versus those that can be implemented later. This helps in allocating funds efficiently.
• Factor in Hidden Costs: Don’t forget to include expenses for software updates, maintenance, and future scaling needs.

Budgeting might feel like pulling teeth, but it’s better to be prepared than to be caught off guard by unexpected expenses down the road.

Set Realistic Timelines

An overly ambitious schedule can lead to rushed work and overlooked details, while a prolonged timeline might delay the benefits of the new software. Here’s how to set a practical timeline:

• Consult with Experts: Work with your development partner to understand the time required for each phase of the project—discovery, development, testing, and deployment.
• Set Milestones: Divide the project into achievable milestones to simplify progress tracking and make adjustments if needed.
• Be Flexible: Allow some buffer time for unforeseen challenges. Software development is complex, and unexpected issues happen.

Balancing Cost vs. Quality

Cost vs. quality is the classic dilemma. Striking the right balance between these two can be tricky, so check these points to make a smart decision:

• Understand Value: Investing in a more expensive, experienced development team can save you money in the long run by reducing the risk of costly mistakes and ensuring a higher-quality product.
• Assess Risks: Cutting corners to save money might lead to a subpar product that fails to meet your needs or requires extensive fixes later.
• Think Long-Term: Quality custom healthcare apps can improve efficiency, reduce operational costs, and enhance patient engagement, providing substantial returns on your investment.

Step 2. Research Potential Companies

The right healthcare software development company with deep knowledge needs to fit well, be reliable, and suit your specific needs. To find a perfect fit, you should spend some time researching potential candidates and assessing them to choose the best. 

Evaluate Company Experience and Expertise

Experience matters. When it comes to software development healthcare industry, you want a company that knows the ropes and has a strong record of accomplishment. 

Industry-Specific Experience

If you want to develop a telemedicine platform, a company with years of experience in creating similar solutions will be better equipped to handle the specific needs of remote patient monitoring, secure video consultations, and data privacy solutions. Most importantly, your potential custom healthcare software development company should be HIPAA-compliant,  know how to integrate software solutions with EHR systems, and protect health management data. 

Portfolio and Case Studies

Review a company’s past work and successes to learn about their capabilities and the types of projects they’ve handled. A varied portfolio indicates flexibility and a wide range of skills you may need if your project is technically complex. Look through their case studies, especially those similar to yours, to see their competence and reliability in this domain. Feedback from previous clients is certainly the best indicator of a company’s performance and trustworthiness. 

Technology Stack Proficiency

If you want scalable, future-proof software you can rely on, you’ll need a healthcare software development agency proficient in current technology and the latest tools. So, check their proficiency in the most popular programming languages and frameworks you plan to use for your project and make sure they keep up with the latest trends.

Check Credentials and Certifications

Expertise alone isn’t enough; you should also verify their certifications and credentials, which validate their capabilities to deliver quality web services and solutions.

Relevant Certifications 

Look for certifications that demonstrate the company’s dedication to quality, security, and compliance with all the industry standards. Here are some key certifications to consider:

• HIPAA Compliance. Ensuring that your potential technology partner is HIPAA compliant is essential if your software will handle sensitive patient data. A company’s HIPAA certification shows its adherence to strict privacy and security standards established for the healthcare sector. 
• ISO 27001 Certification. This certification is a global standard for healthcare information security management systems. It demonstrates that the company has robust processes in place to protect data. Since security is a top priority, you should seek a company with ISO 27001 certification.

Industry Awards and Recognitions

Industry awards and recognitions a healthcare software development company might have can also give you a sense of a company’s reputation and standing within the software development community. Awards can come from independent organizations, publications, or user communities.

Client Testimonials and Reviews

Reviews and testimonials from previous clients can reveal the true story of the company’s performance, communication, and ability to deliver on promises. Check their reviews on Clutch and other reputable sources to evaluate how the company handles projects and maintains client relationships. 

Relevant Software has a strong reputation as a reliable technology partner on Clutch, with multiple positive reviews highlighting our expertise in healthcare software development. What clients value the most in our services is our ability to deliver high-quality solutions, meet deadlines, and exceed expectations.

Step 3. Assess Technical Capabilities

It’s important to know how good a company is at developing software. You need to make sure they have the skills to create a good, functional product that will work well for you, delight your patients, and, most importantly, is safe to use. That’s why you should learn about

Development Methodologies and Processes

The methodologies and software development process a company follows determine how efficiently they can deliver a project. The way they develop solutions impacts the quality of the final product, their ability to adapt to changing requirements, and the overall timeline for completion.

Agile vs. Waterfall

Two primary methodologies dominate the field: agile and waterfall. 

Project Management Tools

Check whether and what tools a company uses to manage projects, track progress, deliver on time, and keep everything and everyone in sync. Some of the popular tools are Jira, Trello, and Asana, which help teams stay organized and streamline workflows.

Quality Assurance and Testing Procedures

QA guarantees that the health apps meet the necessary standards and perform as intended before they go live. A company with strong QA and testing procedures (unit, integration, user acceptance testing) can save you from future headaches by delivering a polished, reliable product.

Technological Infrastructure

The tech infrastructure is the backbone that supports the entire system, and the stronger it is, the more reliable the software will be. It’s about where the code lives, how data is managed, and the overall architecture that supports mobile applications. So, what makes up a solid technological infrastructure? 

Cloud Services and Hosting Options

Approximately 81% of healthcare executives use cloud services across their operations. That’s because cloud computing offers scalable solutions that adapt to your demands without a hitch. Cloud security in healthcare is another reason why many healthcare providers choose cloud technology to safeguard patient information. One more positive moment: the variety of hosting options (from public to private clouds) enables healthcare organizations to select the solution that best suits their specific needs and risk tolerance.

Data Management and Analytics

There is no sense of data if it isn’t managed and analyzed properly. Therefore, it’s critical to give special attention to these features when developing healthcare IT solutions. Efficient data storage helps you store medical records and other critical data securely and access quickly when needed. Meanwhile, healthcare data analytics tools let you derive deep insights from huge sets of data. Overall, the quality of patient care delivery and the efficiency of your operations depends on how well you manage health apps’ data.

Interoperability Standards

Interoperability is that invisible thing that lets different healthcare systems communicate with each other and exchange data easily. Two of the most widely used interoperability standards in healthcare are FHIR (Fast Healthcare Interoperability Resources) and HL7 (Health Level Seven). FHIR is known for its modern, web-based approach, while HL7 is an older but widely adopted standard. Find out about the distinctions and advantages of these standards in our recent article – FHIR vs. HL7.

Step 4. Evaluate Communication and Project Management

Even the most well-crafted plans can falter without effective communication. So, look for a healthcare software development company that, in addition to excellent technical skills, has good communication practices. 

Establish Communication Channels

Everyone involved in the software’s development, as well as key stakeholders, needs to know where to go and how to get there without collisions. First, you should make sure there are direct lines of communication between your team and the product development team. When you determine certain communication channels for discussing project updates and coordinating tasks, it’ll be much easier to ensure that everyone is on the same page. 

Regular Meetings and Updates

Schedule weekly meetings or bi-weekly check-ins to review progress, discuss any issues, make adjustments if needed, and plan for the upcoming week. Also, add milestone updates where you can evaluate the progress against the project’s major goals. 

Communication Tools

There is a myriad of communication tools for different tastes and needs, but some have become extremely popular, especially in IT circles. For example, Slack is great for real-time messaging, file sharing, and integration with other tools. It’s perfect for quick questions and instant feedback. Ideal for larger organizations, Microsoft Teams offers robust features for virtual meetings, document collaboration, and integration with a suite of Microsoft Office apps. 

Cultural Fit and Working Relationship

When you outsource healthcare software development, technical expertise, and project management skills are certainly vital, but those are not the only components of successful collaboration. Pay attention to such things as

Company Values and Work Ethics

Cooperative work with a company that shares your values and work ethic and fits seamlessly into your team’s dynamics is much smoother. So, take the time to understand their company culture. Do they value transparency and innovation as much as you do? Will they go the extra mile to deliver high-quality work? 

Collaboration with Internal Teams

For a project to be successful, strong collaboration between your teams and the external development partner is essential. Don’t think that you’ll hand over a project and wait for the results. Medical software development requires involvement from your side as well. The development team should integrate well with your internal teams, understand your processes, and complement your existing workflows. 

Step 5. Review Legal and Compliance Aspects

We have already mentioned a few times the importance of medical software being compliant with industry standards and rules. Obviously, healthcare software development companies that understand and adhere to these regulations will be the most suited choices. 

Ensure Regulatory Compliance

Verify that the medical software development companies maintain thorough documentation for all processes, which can be crucial during audits or regulatory reviews. Check if your potential partner holds relevant certifications that demonstrate their commitment to compliance and quality standards.

HIPAA and GDPR Compliance

If your software will handle protected health information (PHI) in the United States, HIPAA compliance is a must. It requires you, your software, and the software developers you collaborate with to meet security requirements to protect patient data from breaches and unauthorized access. For projects targeting European patients, GDPR is an obligatory rule. Similarly, it protects data privacy and gives individuals control over who can access their personal information and how. Your partner should know about these regulations and follow them. 

Local and International Regulations

Depending on your geographic location, there might be additional data protection laws to consider. So, look for healthcare software development firms that are familiar with and can comply with all applicable regulations.

Intellectual Property Rights and Data Security

Every piece of code and design element in healthcare software solutions is intellectual property (IP). Clear agreements regarding IP rights ensure that you have full control over the software, allowing you to modify, update, and scale it as needed without legal complications.

Ownership of Source Code

Make sure that your contract with the healthcare software developers explicitly states that you will own the source code upon project completion. Check that all IP rights are transferred to you, including any patents, trademarks, or copyrights associated with the software, to prevent any disputes over ownership. Also, make sure that you receive all documentation and access to the source code repository.

Data Privacy and Protection Policies

Inquire a healthcare software development company about their data security practices and pay attention to:

• Data encryption
• Access controls
• Compliance
• Data handling policies
• Incident response plan 

Step 6. Analyze Cost Structures

You should understand the cost structures involved to assess the value that a healthcare software development company offers for custom software development services. Seek out a service provider that maintains transparency in their pricing and offers a comprehensive breakdown of all associated costs.

Understand Pricing Models

There are several different pricing models that are used for different project requirements (scope, budget, and flexibility). Let’s look closer at them.

Fixed Price

You know exactly what you’re getting and how much it will cost upfront. This model works well for projects with well-defined requirements and a clear scope. It’s great for budgeting since there are no surprises. However, any changes or additional features can lead to renegotiations or additional costs.

Pros: Predictable costs, straightforward budgeting, less financial risk.

Cons: Less flexibility, potential for higher costs if project scope changes. 

Time and Materials

You pay for the actual time and resources spent on your project. This model is ideal for projects where requirements might change over time or when it’s challenging to define the full scope upfront. With time and materials, you get flexibility, but it’s harder to predict the total cost.

Pros: Flexibility, adaptability to changing requirements, more control over the project.

Cons: Potential for cost overruns, harder to predict total expenditure.

Dedicated Team

You have a team of experts working exclusively on your project, fully integrated into your processes and culture. The dedicated team model is perfect for long-term projects or when you need ongoing development and support.

Pros: Higher engagement, flexibility and control, long-term relationships.

Cons: Higher initial investment, management effort, dependence.

Subscription-Based Pricing

You pay a recurring fee (monthly or annually) for access to services, support, and updates. This model is usually used for software-as-a-service (SaaS) products.

Pros: Predictable costs, continuous updates, and support, easy scalability.

Cons: Ongoing costs can add up, potential for paying for unused features or services.

Hidden Costs and Additional Fees

When budgeting for healthcare software, don’t forget about some additional costs and potential fees that are not included in the development process but can pop up like surprises at the end.

Maintenance and Support Costs

Software needs regular maintenance to operate smoothly long after development. As a rule, custom healthcare software development companies offer maintenance services that involve bug fixes, software updates, and user support. This will cost you additional fees on top of the initial development costs.

Upgrades and Scalability Charges

As your practice grows, so will your software needs. Upgrades and scalability charges can hit your budget when you least expect it. That’s why discuss potential future needs and associated costs with your healthcare software development company during the initial project planning. 

Step 7. Make the Final Decision

So, you’ve made a list of potential candidates and evaluated their strong and weak points. Now, it’s time to select the right one by applying some of the techniques.

Compare Proposals and Offers

Lay out all the companies’ proposals side by side. Look at what each healthcare software development company offers in terms of services, costs, timelines, and support options. Create a comparison chart of key factors like pricing, expertise, communication, and cultural fit. This visual aid can make it easier to weigh the pros and cons of each option. Think about their strengths, any potential drawbacks, and how well each healthcare software application development company from the list aligns with your project goals. 

Conduct Final Interviews and Discussions

After narrowing down your choices, it’s time for the final round—interviews and discussions with your top contenders.

Clarifying Doubts and Queries

Think of the interview as your last chance to clear up any lingering uncertainties. Ask questions about aspects that interest you but that are left unanswered during your research of their process, timelines, and how they handle potential challenges.

• Technical Details: Learn more details about their technical approach. How do they handle data security? What’s their backup plan if things go sideways?
• Project Management: Understand their project management style. How often will they update you? 
• Support and Maintenance: Clarify what happens after the project is completed. Do they offer support post-development? 

Final Negotiations and Agreements

Once you have all your questions answered, talk about the terms of your collaboration. What you should agree upon first of all is:

• Pricing and Payment: Ensure the pricing structure is clear and that there are no hidden costs. Negotiate payment terms that work for both parties.
• Timelines and Deliverables: Agree on a timeline that’s realistic and mutually beneficial. Make sure all key deliverables are clearly defined.
• Legal Agreements: Finalize contracts that cover intellectual property rights, confidentiality, and any other legal considerations. Make sure you’re protected if anything goes wrong.

Step 8. Sign the Contract and Initiate the Project

You’ve done your homework, compared options, and selected a custom healthcare software development company you’ll be most comfortable working with. What’s left is to seal the deal. Signing the contract and kicking off the project is the final, exciting step before the not less exciting software development process.

Contract Review and Signing

Before you put pen to paper, give the contract a thorough review as it serves as your safety net. Ensure all agreed-upon details are accurately reflected. Double-check timelines, deliverables, payment terms, and support arrangements. If possible, have a legal expert review the contract to catch any hidden pitfalls and save you from future headaches.

Key Clauses to Include

A good contract protects both parties and sets clear expectations. Therefore, every agreement should involve some key clauses:

• Scope of Work: Clearly define what’s included (and excluded) in the project.
• Payment Terms: Specify payment amounts, schedules, and conditions. 
• Confidentiality: Protect sensitive information with a confidentiality clause. 
• Intellectual Property: Detail who owns the intellectual property rights to the software. Typically, you should retain ownership of the source code and related IP.

Exit and Termination Terms

Sometimes, things don’t go as planned. Clear exit and termination terms in your contract can save you a lot of trouble later. That’s why outline conditions under which either party can terminate the contract. This might include breaches of contract, non-payment, or failure to meet deadlines. You can also define the exit strategy, including how the transition will be managed and what happens to the work completed so far. And don’t forget to add a dispute resolution clause to address any disagreements amicably.

Kickoff Meeting and Project Onboarding

A successful project starts with a well-planned kickoff meeting for all stakeholders and team members and a smooth onboarding process. Treat this meeting as the grand opening of your project. It’s a moment for you to set the tone, align expectations, and outline the path forward. Define achievable goals and share them with the teams (What do you want to accomplish in the first few months?) It would also help to break down the project into manageable chunks to measure progress and make necessary adjustments.

Onboarding the Development Team

You want the development team to feel included, informed, and ready to hit the ground running. To do that, you should onboard them and equip them with all the necessary information and tools.

• Introduce the project. Tell as many details about the project as possible (goals, scope, significance, etc.). 
• Define team roles. Clearly define each team member’s roles and responsibilities. When everyone knows who’s in charge of what, it prevents overlaps and misunderstandings and ensures everyone is focused on their specific tasks. 
• Tools and processes. Familiarize the team with the tools and processes you’ll be using (project management software, communication platforms, or development tools). Ensure everyone knows how to use them effectively.

Company vs. Freelancers

You may face a choice to cooperate with freelancers or healthcare software development companies for your project. There is no direct and clear-cut answer because it depends on what you need. What we offer is to review in more detail when certain options will suit best. 

Healthcare software development company:

• Pros: Established processes, diverse skill sets, project management expertise, scalability, and accountability.
• Cons: Higher costs, potential bureaucracy, and less personalized attention.
• Best suited for: Large-scale, complex projects that require a variety of skills, robust project management, and ongoing support and maintenance.

Freelancers:

• Pros: Cost-effective, flexibility, specialized skills, and potential for faster turnaround.
• Cons: Lack of consistency, project management challenges, limited resources, and potential for quality issues.
• Best suited for: Smaller, less complex projects or specific tasks that require niche expertise and benefit from flexible arrangements and lower costs.

Ultimately, the best choice depends on your project’s specific requirements, budget, and risk tolerance.

How Relevant Can Help You with Healthcare Software Development

The choice of the healthcare software development company & solutions is a big decision—one that affects the future of your practice and the success of your project. At Relevant, we get it. We know how vital it is to have software that, besides flawless operation, makes your life easier and your patient care better. Here’s how we can help you achieve that:

• Diverse Expertise. Our team’s diverse skill set ensures we can handle any challenge you throw at us.
• Proven Track Record. We’ve successfully delivered different types of healthcare projects.
• HIPAA Compliance. Patient data security is our top priority. We build HIPAA-compliant digital solutions that protect sensitive information.
• Patient-Centric Approach. At the heart of everything we do is the aim to improve care and digital patient experience and streamline your operations.
• Transparent Pricing. No hidden costs, just clear and honest pricing that reflects the quality of our work.
• Dedicated Support. We provide maintenance, support, and updates to ensure the longevity and performance of your software.

Choosing Relevant means choosing a partner who is as invested in your success as you are. If you want to discuss your healthcare software project in detail or simply learn more about how we can help, we’re just a conversation away. Contact us!