The medical industry, long bound by clunky paper record systems and data silos, is getting a digital makeover. The sector is rapidly becoming more efficient, effective, and accessible with the help of healthcare software.
Fueled by advancements in artificial intelligence (AI), machine learning (ML), and predictive analysis, innovative software solutions are transforming every part of medicine, from automating administrative tasks to enhancing preventive care. As the sector modernizes, demand for healthcare software development is soaring. The healthcare software market, valued at US$ 7.1 billion in 2024, is expected to reach US$ 10.5 billion by 2031.
What does the future hold for healthcare software development? Ahead, we explore ways healthcare software development is reshaping the industry, exploring benefits, emerging trends, and more.
What is healthcare software development?
Healthcare software development involves building and maintaining computer programs for the medical industry. Medical IT systems leverage ML and other tech to streamline processes and improve patient outcomes. Medical software platforms perform many functions, from managing healthcare data to facilitating telemedicine consultations to remote patient monitoring.
Regulatory requirements in healthcare software development
Compared to other types of software, healthcare applications can be uniquely challenging to build due to strict compliance and healthcare data privacy laws. Developing compliant, secure medical systems requires careful adherence to a complex web of US regulations.
Ahead, we've summarized a few of the most important regulations to know:
- Health Insurance Portability and Accountability Act (HIPAA) - HIPAA is a law that mandates strict standards for securing Protected Health Information (PHI), first established in 1996.
- Health Information Technology for Economic and Clinical Health Act (HITECH) - Introduced in 2009, the HITECH Act expanded HIPAA's scope to include business associates who handle PHI and introduced stricter penalties for non-compliance.
- General Data Protection Regulation (GDPR): This EU law protects the privacy and security of healthcare data for patients in the European Union.
Types of healthcare software
Healthcare software has revolutionized the medical field. These systems equip providers and patients with groundbreaking tools while upholding high security and compliance standards.
Electronic health record (EHR) systems
Electronic health record (EHR) systems first replaced paper records in the '60s. Over the years, the tech has evolved from punch cards and floppy discs to present-day cloud computing.
EHR systems are digital, patient-centered records that can be accessed instantly. Containing all of a patient's medical history — from diagnoses and medications to immunization dates and radiology images — EHRs facilitate data sharing among healthcare providers, improving the coordination of care.
Telemedicine platforms
Telehealth — tech used to provide remote healthcare services — has existed for decades. Telemedicine gained momentum during the pandemic when social distancing measures made in-person consultations challenging.
Through video conferencing, online portals, and mobile apps, telehealth software lets patients connect with providers from anywhere in the world. Modern platforms empower healthcare professionals to virtually examine patients, review medical records, prescribe medication, monitor treatment, and more.
Healthcare mobile apps
Medical mobile apps make healthcare more accessible, efficient, and patient-centric. These apps connect patients with providers, letting them to book appointments, track health metrics, access medical records and test results, and more. Medical apps can also pair with wearable devices, providing patients and providers with real-time insights into vital signs and improving preventive care.
Wearable devices
Traditional healthcare addresses problems when they occur. Wearables are changing this, allowing for continuous tracking that empowers preventative care and early intervention. These devices monitor metrics like heart rate, blood pressure, and fitness levels and analyze these data to deliver actionable insights.
Pharmacy management systems (PMS)
A pharmacy management system (PMS) is software that streamlines the pharmacy-patient lifecycle. PMS platforms improve efficiency, enhance patient care, and reduce errors with features like automated prescription review and inventory control. At the same time, this tech helps pharmacies comply with regulations regarding medication dispensing and patient privacy.
Medical imaging & diagnostics
Acting as a second set of eyes, medical imaging, and diagnostic software help healthcare professionals diagnose and monitor diseases. These tools process and analyze medical images from MRI, CT scans, and X-rays, enhancing the clarity and detail of images to deliver a more precise diagnosis. Networked medical devices — such as ultrasound machines and data-sharing implants — empower early detection and improved medical assessments.
Medical practice management software
Medical practice management software automates administrative tasks. These systems can streamline routine processes like scheduling appointments, billing, and notetaking. By automating these activities, the software frees providers to focus more on patient care.
Benefits of healthcare software development
Medical software is at the heart of improving patient care and saving lives. Integrating software into healthcare practices brings countless benefits, including:
- Enhancing patient safety. Healthcare software improves patient safety by reducing errors.
- Enhancing communication. Telehealth systems facilitate remote consultations between providers and patients.
- Improving efficiency. Healthcare software streamlines mundane tasks, boosting efficiency and cutting costs.
- Empowering patients. Healthcare software lets patients view test results, schedule appointments, and communicate with providers.
- Allowing remote monitoring. Networked medical devices and wearables allow for continuous monitoring of patients' health status.
- Supporting clinical decision-making. AI-powered healthcare software supports clinical decision-making by providing evidence-based recommendations and predictive analytics.
Emerging trends in healthcare software development
Emerging healthcare technologies are reshaping the patient experience, improving data management, and streamlining practice operations. Understanding these trends is key to advancing patient care.
Ahead, we explore five key trends in healthcare software development:
Artificial intelligence (AI)
AI continues to reshape healthcare, with no signs of slowing. The tech is making waves in areas like diagnosis, treatment, and administration. Able to quickly analyze vast amounts of data, AI has been particularly transformative for diagnostics. Already, forward-thinking companies are integrating AI into medical devices, such as MRI and CT scanners, to enhance diagnostic speed and accuracy.
Blockchain for healthcare data
Blockchain is a digital ledger that stores and verifies data. Blockchain's highly secure, unalterable quality is a boon for the medical industry, offering safe and transparent methods for managing healthcare data. Blockchain tech presents numerous opportunities for patients and providers, providing a secure, decentralized infrastructure for managing medical data while protecting patient privacy.
Internet of Medical Things (IoMT)
The IoMT connects medical devices to the internet. By providing connectivity wearables, biosensors, and remote diagnostic tools, IoMT allows real-time monitoring and data exchange. The tech's integration has transformed the industry, improving medical workflow management, empowering early detection, and personalizing patient care.
Cloud-based healthcare solutions
Cloud computing has emerged as a prominent, revolutionary force in healthcare. Cloud-based healthcare solutions store medical data on remote servers, allowing providers to access information from anywhere. Beyond simplifying and securing medical record-sharing, cloud computing streamlines backend operations and facilitates remote patient consultations. AI-powered cloud services can predict patient outcomes, personalize treatment plans, and detect diseases early.
Remote patient monitoring (RPM) systems
Remote Patient Monitoring (RPM) systems let providers monitor patient health in real time. RPM devices can monitor vital signs such as heart rate and blood pressure, alerting providers to potential issues before they become critical. This proactive approach improves patient outcomes while reducing the burden on healthcare facilities.
The Software Development Life Cycle (SDLC) in healthcare explained
The software development life cycle (SDLC) is a method of planning, designing, modifying, and maintaining software. Software engineers use this structured, step-by-step approach to design high-quality software while avoiding errors and delays. Ahead, we summarize the seven steps of SDLC in healthcare:
1. Plan
Step one involves defining the software's goals and requirements. In this step, development teams step define the software's target users: Will the software be used by providers, patients, or both?
2. Requirements analysis
Next, the developer team gathers and analyzes user and system requirements. This step is designed to ensure the software meets user needs while complying with regulations like HIPAA.
3. Design
In step three, dev teams create an architectural design. In healthcare, this step includes designing secure data structures to protect patient information and ensuring interoperability with existing systems.
4. Implementation (Coding)
Next, developers write the code following the design specifications. Given the sensitivity of healthcare data, development teams prioritize security and reliability in this step.
5. Testing
In step five, dev teams perform rigorous testing to identify and fix defects. When developing healthcare software, this phase also involves ensuring that the app complies with HIPPA and regulatory standards.
6. Deployment
Next, the software is released into the live environment. In healthcare, the deployment stage often includes staff training and integration with other medical systems.
7. Maintenance
Step seven is ongoing. Development teams provide ongoing support to address any issues that arise post-deployment. In the medical software world, maintenance involves regular updates and patches to keep up with evolving healthcare regulations and emerging security threats.
Choosing the right healthcare software development partner
Choosing an experienced software development partner is important in any industry. Finding the right development partner is particularly critical in healthcare, where software design plays a major role in saving lives and avoiding dangerous errors.
Here are some key qualities to consider when selecting a healthcare software development partner:
- Technical expertise. Healthcare software is notoriously complex. A development team with solid technical skills can offer creative solutions to complicated healthcare challenges.
- Expertise in healthcare. Healthcare software requires rigorous development, as solutions must comply with HIPAA and other industry regulations. Look for a partner with industry experience to guarantee compliance, faster problem-solving, and minimal downtime for every project.
- Ongoing support. Given the ever-evolving nature of healthcare regulations, ongoing support is a must. The right partner will offer post-development maintenance to help you adapt to changing laws, market trends, and security threats.
- Scalability and future-proofing. As healthcare organizations grow, software systems must scale accordingly. The right partner will help you update your software according to industry advancements and your expanding business.
- Security and compliance. Your development partner should protect data with sturdy security protocols, including encryption techniques and access restrictions. Adherence to data privacy regulations such as HIPAA and GDPR is non-negotiable, as non-compliance can lead to severe penalties and loss of patient trust.
- Cost. Custom healthcare software development can be expensive. Costs can vary widely based on the project's complexity, desired features, and the development team's location. Partnering with a nearshoring team to reduce costs can result in a higher return on investment.
Are you a healthcare organization looking to build high-quality, custom software? Consider working with a nearshoring software development partner like Howdy.com. By nearshoring, your company unlocks access to a wider pool of senior-level healthcare software engineers in Latin America at competitive rates.
At Howdy.com, connecting US-based healthcare companies with talented engineers is what we do best. We have over a decade of experience helping medtech companies design and maintain innovative software solutions, from simple web application development to big data IT infrastructures. Book a demo with one of our medtech experts to learn more.