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Healthcare Software Development: A Modern Approach to Better Care

by | March 1, 2024

In today’s technology-driven and health-conscious world, digital software solutions are providing a new, modern approach to healthcare that we haven’t seen before. 

This is due to the growth in healthcare software, which encompasses a large scope of services and solutions that are all aimed at improving patient care, enhancing efficiency, and granting users reliable healthcare no matter where they’re located. The growth of eHealth solutions can be seen around the world, with the global digital health market expected to exceed 650 billion dollars by 2025. 

But what exactly does healthcare software development entail? 

Keep reading to get an overview of the healthcare software market, important healthcare regulations, types of software in high demand, and how to approach software development for healthcare. 

What is Healthcare Software Development? 

Healthcare software development is the process of designing and developing software applications tailored for the healthcare industry. It involves various solutions and tools for healthcare professionals, patients, laboratories, and other healthcare organizations to streamline processes and improve patient outcomes. Medical software includes health information technology, telehealth apps, telemedicine apps, electronic medical records, applications that use big data and AI, and much more. 

Overview of the Healthcare Software Development Market   

The global healthcare IT market is expected to expand at a compound annual growth rate (CAGR) of 15.8% from 2024 to 2030. This market growth is due to the increased usage of smartphones, the growing demand for remote patient monitoring, technologically advanced healthcare IT infrastructure, and an increase in the number of investments supporting eHealth. 

Today, 93% of physicians believe digital health tools are an advantage for patient care. Physicians are adopting digital tools more than ever before, with improved clinical outcomes and work efficiency being the key drivers. 

With the pandemic introducing a new need for remote solutions, the growing industry has given both healthcare providers and patients the opportunity to explore a modern approach to healthcare, with a new availability of applications that many didn’t have access to before. To keep up with the growing demand, healthcare providers must seek custom software development in healthcare to attract and retain more patients. 

Challenges and Opportunities in Healthcare Software Development 

As better-quality care becomes a priority, there are many opportunities for new software development, improved healthcare processes, and better doctor-patient relationships. The challenge? 

Compliance is a crucial aspect of healthcare software and must be applied throughout the entire development process. This includes billing, insurance, and adhering to the specific healthcare regulations of different countries. Since not all software developers have experience in healthcare applications, businesses must choose developers who have knowledge of strict healthcare regulations to ensure compliance.   

Developers must also find solutions to new technological challenges. This includes creating a well-integrated system, using data analytics, and creating a product that is easily scalable. Comprehensive software development companies accomplish this by offering tailored solutions to a company’s specific healthcare needs. Tailored solutions also address the need for improved communication between development and clinical teams and the ongoing need for better security and privacy measures. 

The opportunities for a custom solution are endless. Since healthcare covers a large range of services and approaches, healthcare providers that work with developers can create a system that addresses the specific needs of their patients. 

software development for healthcare

Understanding Healthcare Regulations 

Developers must consider healthcare regulations throughout the entire development process. These regulations shape how software is developed, deployed, and maintained in the healthcare sector, making compliance a key factor in success. 

Keep reading to explore key healthcare regulations, the impact of these regulations, and interoperability and data exchange standards. 

Key Healthcare Regulations 

Some of the key healthcare regulations that developers must consider include: 


  • Health Insurance Portability and Accountability Act (HIPAA): HIPAA is a federal law that requires the creation of national standards to protect sensitive patient health information from being disclosed. HIPAA compliance for healthcare software development is especially important in today’s increasingly digital healthcare environment, meaning businesses must prioritize compliance to build trust, avoid legal fees, and uphold the integrity of their business.
    There are multiple rules that make up HIPAA. The Privacy Rule establishes national standards to protect patients’ medical records; the Security Rule requires physicians to protect patients electronically stored health information (known as ePHI); and the Breach Notification Rule requires providers to report healthcare data breaches. 
  • General Data Protection Regulation (GDPR): The GDPR is a strict data protection law passed by the European Union. It applies to all organizations, including healthcare providers, hospitals, clinics, and health insurance companies that process personal data of individuals residing in the EU, regardless of where the processing takes place. This regulation grants data subject rights to individuals, which include the right of access, the right to rectification, the right to erasure, the right to strict processing, the right to data portability, and the right to object.
    It also has various data protection principles relevant to healthcare, including security and confidentiality, protection against data breaches, data retention, and purpose limitation. 
  • Other Regional and International Regulations: There are various regulations in other key markets. This includes the Personal Information Protection and Electronic Documents Act (PIPEDA), a law in Canada that governs how private sector organizations collect, use, and disclose personal information. Another example are the National Health Service (NHS) regulations in the UK, which work to ensure the delivery of high-quality healthcare services to patients while upholding safety, efficiency, and ethical standards.
    The examples above are a great window into country-specific regulations, but every country has differences in its international healthcare data protection and privacy laws. Key differences may include legal frameworks, specific provisions, and enforcement mechanisms. However, they often have key commonalities, such as the protection of patient data, patient rights, and compliance obligations. 

Impact of Regulations on Healthcare Software Development 

Due to strict regulations, developers must consider the following during development: 


  • Design and development considerations: The architecture of a healthcare application must consider the specific regulations in the healthcare industry, which may include quality standards, risk management, documentation and reporting, interoperability, and data exchange, among others. 
  • Data encryption and security measures: Data encryption is a fundamental component of security in healthcare software product development, as it mitigates the risk of data breaches. By implementing encryption methods, healthcare organizations comply with regulations, protect patient data, and enable secure data sharing. 
  • User access controls and audit trails: Developers must implement HIPAA-compliant audit trails and audit logs to record and monitor access to electronic protected health information. The system should log details like the date and time of access, the source of access, the identity of the person accessing the information, and the type of action performed. 
  • Incorporating consent management and patient rights into software: Healthcare providers must obtain valid consent from patients and maintain records of when this consent was given. Preference management programs simplify the collection and management of authoritative user choices, allowing patients to choose how they would like to get in touch and how much communication they would like to receive. 

Interoperability and Data Exchange Standards 

To ensure success in software development, different programs must be capable of exchanging information, sharing files, and using the same protocols. Here are some of the standards in the healthcare industry: 


  • Health Level Seven International (HL7): HL7 is a range of global standards for the transfer of clinical and administrative health data between applications. It is considered one of the most successful medical standards and includes test result reporting, order entry of many kinds, and more. 
  • Fast Healthcare Interoperability Resources (FHIR): FHIR is a HL7 standard that combines the best features of previous standards into a common specification that offers more flexibility, aiding in rapid adoption. 
  • Standards for electronic data exchange in healthcare: Aside from HL7 and FHIR, some key standards include DICOM, SNOMED CT, and CCDA. These standards exist for communication between medical devices and between devices and EMRs, digital imaging communications, administrative data exchange, and clinical data exchange. 
healthcare software product development

What Software Does the Healthcare Industry Use? 

Healthcare software development has many sub-categories that meet the needs of different healthcare requirements. To get an idea of how software is used in the healthcare sector, let’s take a look at some of the common applications. 

Electronic Health Records (EHR) and Electronic Medical Records (EMR) Software 

  • Purpose: Stores, manages, and accesses patient medical histories, treatment plans, medication lists, and other health information. EHR software development provides valuable information, allowing providers to manage care more efficiently. 
  • Users: Healthcare providers, hospitals, clinics. 
  • Features: Patient portal, care tracking, test results, electronic prescriptions, billing, patient history recording, decision support, lab integration, order entry, appointments. 
  • Example: Medical Records Tracker – Allows users to securely store and organize health records, medication schedules, and medical appointments. 

Telemedicine and Telehealth Software 

  • Purpose: Provides remote clinical services, consultations, and medical care through digital communication technologies. Telemedicine software development allows for real-time collaboration, helping patients connect with healthcare providers no matter where they’re located. 
  • Users: Patients, doctors, therapists, remote healthcare providers. 
  • Features: Virtual consultations, secure messaging, electronic health records, teleradiology solutions, appointment scheduling, telemonitoring integration, health data tracking, medication reminders. 
  • Example: ECS Clinical – Through telehealth app development, Scopic created a chat application that provides secure and affordable cloud-based communication, consultation, and collaboration. 

Medical Practice Management Software 

  • Purpose: Handles the day-to-day operations of a medical practice, including scheduling, billing, and other administrative tasks. Streamlines tasks and improves workflow productivity. 
  • Users: Healthcare administrators, medical practices, billing companies. 
  • Features: Patient management, reporting and analytics, appointment scheduling, billing and invoicing, patient portal, inventory management, electronic health records, automated tasks. 
  • Example: Medical Case Management System – A web app that centralizes aspects of patient care such as scheduling, charting, treatment planning, and medical billing. 

Pharmacy Management Software 

  • Purpose: Manages the dispensing of medications, handling of prescriptions, inventory management, and billing in pharmacies. This system helps automate the workflow in a pharmacy, providing quality care to patients.  
  • Users: Pharmacists, pharmacy technicians. 
  • Features: Inventory management, electronic prescriptions, prescription management, analytics, expiry control, medication documentation, drug interaction alerts. 
  • Example: RXWeb – A web-based platform that manages all areas of a pharmacy, including stock ordering and management, clinical services, and patient communications. 

Medical Imaging Software 

  • Purpose: Manages and processes medical images such as X-rays, MRIs, and CT scans. Medical imaging software development also aids in diagnosis, allowing radiologists to monitor the progress of a disease. 
  • Users: Radiologists, medical imaging technicians. 
  • Features: Radiology software often has image acquisition and archiving, DICOM support, image analysis, reporting tools, integration with RIS and EHR, and teleradiology capabilities. 
  • Example: FastPacs DICOMRadiology information system that allows medical professionals to archive, view, and edit DICOM images.  
    Radconnect – Image sharing solution that allows images to be shared securely to get a second opinion without having to leave home. 

Dental Software 

  • Purpose: Digitizes dental records and streamlines different aspects of dental operations. Helps dentists oversee their daily business operations. 
  • Users: Dentists, dental assistants, patients. 
  • Features: Scheduling, patient registration, billing and insurance, dental charting, appointment reminders, reporting and analytics, treatment planning. 
  • Example: Shadewave – Enables dentists and labs to determine dental shades more accurately, allowing dental practices to communicate with labs in real-time. 

Patient Engagement Software 

  • Purpose: Engages patients in their healthcare process through appointment scheduling, reminders, health education, and communication tools. Facilitates communication between health care providers and patients, improving patient outcomes. 
  • Users: Patients, healthcare providers. 
  • Features: Appointment reminders, patient portal, bill payments, health record viewing, automated messaging, educational resources, health monitoring. 
  • Example: Wellness Network – Helps users manage their diet and exercise so that they can better manage chronic health conditions.  

mHealth (Mobile Health) Applications 

  • Purpose: Delivers healthcare services and information through mobile devices like smartphones and tablets. mHealth apps monitor users’ health conditions, such as chronic disease, weight, sleep, blood pressure, and mental health. 
  • Users: Patients, general public, healthcare providers. 
  • Features: Health tracking, symptom checker, appointment scheduling, payment integration, wearable integration, medicine reminders, remote medical assistance, user education. 
  • Example: MySelfPlan – Provides daily plans for students to improve their psychological health through interactive features and alerts to reduce stress. 
    FitStation – A supportive fitness network that allows fitness leaders to provide remote support, with features like workout sending and tracking, goal setting, event scheduling, and more. 

Health Information Exchange (HIE) Software 

  • Purpose: Facilitates the sharing of health information across different healthcare systems and settings. This improves the speed, quality, safety, and cost of patient care. 
  • Users: Healthcare providers, health information exchanges, regulatory bodies. 
  • Features: Data exchange, security and privacy controls, consent management, clinical decision support, audit and reporting, integration with health information systems. 
  • Example: Nautilus – Medical image exchange solution where medical images, reports, and EMR can be exchanged automatically. 

Personal Health Record (PHR) Software 

  • Purpose: Enables patients to maintain and manage their own health information in a centralized location. This helps patients better manage their care and improve health outcomes. 
  • Users: Patients, caregivers. 
  • Features: Health information management, medication tracking, lab results management, accessibility across devices, integration capabilities. 
  • Example: MedicLog – Helps patients record their basic health records and vital signs and share them quickly with their doctors. 

Healthcare Analytics and Data Management Software 

  • Purpose: Analyzes large volumes of healthcare data for insights into patient care, operational efficiencies, and research. This system works to find trends, draw conclusions, and identify the potential for improvement. 
  • Users: Healthcare analysts, researchers, administrators. 
  • Features: Predictive analytics, real-time monitoring, data integration, clinical decision support, care coordination, data collection and management. 
  • Example: Covid by Numbers – Resource with free, up-to-date coronavirus statistics that helps users understand global coronavirus cases, fatalities, excess deaths, and testing rates by country. 

IoT Healthcare Applications 

  • Purpose: Collects and analyzes data from connected healthcare devices and sensors for monitoring and diagnostic purposes. Allows for remote patient monitoring, real-time health data collection, tailored treatment plans, and more. 
  • Users: Patients, doctors, caregivers. 
  • Features: Data analytics and insights, integration with wearable devices, telehealth capabilities, and real-time data collection. 
  • Example: Glucose Buddy – Tracks blood sugar over time with weekly reports and action plans to keep your glucose in check. 

Medical Research and Clinical Trials Software 

  • Purpose: Assists in the research, planning, management, and tracking of clinical study data. Improves data collection and analysis and ensures regulatory compliance. 
  • Users: Researchers, healthcare providers, regulatory authorities, study participants. 
  • Features: Electronic data capture, electronic clinical outcome assessment, patient management, real-time monitoring and reporting, regulatory compliance assistance. 
  • Example: Encapsia – Allows you to manage, explore, visualize, and analyze clinical data effectively. 

How to Approach Healthcare Software Development? 

Custom healthcare software development allows companies to provide tailored solutions to healthcare providers and their patients. Developing software in the healthcare sector comes with both challenges and opportunities, meaning that selecting the right development company is a crucial decision. Here’s a quick overview of what to expect from healthcare software product development. 

Understanding the Costs 

The cost of healthcare software product development varies depending on the complexity and scope of the app, compliance requirements, technology used, specialized skill requirements, desired features and functionality, platform compatibility, integration with existing systems, and data security requirements. That said, a simple application may cost between $50,000 and $100,000, while a more complex project can cost $300,000+. 

Prioritizing Regulatory Compliance in Development 

While strict compliance regulations can increase the cost of a project, there are some strategies that can be used to avoid escalating costs. This includes the early integration of compliance requirements, which allows developers to design solutions from the beginning rather than making costly adjustments down the road. There are also established compliance frameworks and standards and automated testing tools to streamline the process. 

With regulatory compliance a top priority in the healthcare industry, companies should work with an experienced healthcare software development company for optimized strategies and results. 

Selecting the Right Development Partner 

Choosing the right development partner is key to a project’s success. Before choosing a partner, consider a company’s experience in healthcare projects, expertise in compliance, technology stack, previous case studies, and client testimonials. For a better look at how to choose the right software development company, read our comprehensive guide. 

You should also consider different engagement models to determine the pricing model, time and material requirements, and how integrated they should be with your team. One of the recommended models is software development staff augmentation, an outsourcing model that provides companies with a quick and cost-efficient solution. This allows companies to temporarily grow their team, giving them access to global developers with specialized skills. 

Approaching the Development Process 

As shown above, there are various applications that fall under healthcare software product development. That said, here are some of the factors that developers may address: 


  • User Experience (UX) Design: This is a design process that focuses on providing meaningful and relevant experiences to users, guaranteeing that the software is designed to meet the specific needs of its target audience. This is especially important in healthcare, as it helps healthcare professionals create better care experiences for their patients, therefore improving the success of the software. 
  • Data Security and Privacy: Breaches in data security can result in citations, fines, and liability lawsuits, making data security a critical part of healthcare software development. To ensure data security and privacy, developers must follow strict protocols by creating a comprehensive strategy that encompasses encryption, authentication, testing, and updates. 
  • Interoperability: Interoperability allows different systems, applications, and devices to exchange and interpret data. Overall, it creates a unified environment for health data, saving time, reducing errors, and simplifying workflows. 
  • Scalability and Performance: Developers must design software with scalability in mind. This allows businesses to handle increased users, customers, and requests, which is important for both big medical centers and small businesses. 
  • Continuous Improvement: This is the process of using user feedback to adjust the software, therefore improving minor processes and enhancing the user experience. This ensures that businesses deliver high-quality products. 

Leveraging Emerging Technologies in Healthcare Software Development 

Integrating emerging development technologies helps developers create software with more capabilities and customizable solutions. A popular trend in development is the use of artificial intelligence and deep learning models, which offer many new features, including the ability to analyze patterns in a patient’s medical history and current health data to predict potential health risks.  

AI in radiology is a great example of this, as it interprets and analyzes medical images and automates workflows. AI can also be leveraged for building AI assistants, ChatGPT integration, and structuring unstructured patient data, among others. 

Internet of Things (IoT), a network of interconnected devices that exchange data, is also on the rise. This allows for remote patient monitoring, virtual care, chronic disease management, and wearable technology. 

And lastly, big data analytics analyzes large datasets to guide decision-making and improve patient outcomes. It aids in clinical decision support, predictive analytics, population health management, and healthcare fraud detection, among others. 

Our Expertise in Healthcare Software Development 

Scopic has over 15 years of experience in medical software development. Our software team consists of professionals from around the globe with specialized skill sets in healthcare software development. To get an idea of some of our previous work, here are some of our favorite projects: 

MD Ally

MD Ally had the vision of creating a telehealth app that provides support to non-critical patients that reach out to 911 services. To bring this idea to life, they partnered with Scopic and developed the MD Ally application. Scopic’s development team implemented Twilio video, audio, and interactive voice response features to create a successful application. 

ECS Clinical

ECS Clinical is a chat application that provides patient care through real-time collaboration. Scopic’s team developed the ECS Clinical Messenger app with all HIPAA compliance requirements in mind. We also implemented end-to-end encryption, smartphone compatibility, zero footprint, and more. 


Mediphany is a cross-platform radiology software that helps patients read their MRI and CTI scans. To bring their idea to life, Mediphany partnered with Scopic to develop a software solution that saves users time and money when compared to traditional radiology centers. Not only did Scopic develop the application, but our marketing team created a comprehensive strategy to increase conversions. 


Healthcare software has become increasingly popular, making way for new opportunities in the healthcare sector. Through careful navigation of the development process, with compliance as the number one priority, healthcare organizations have a new opportunity to create software that streamlines their workflow, reaches a larger audience, and enhances care. 

With new advances in technology, we expect to see an increase in software that leverages AI, data analytics, and IoT to provide enhanced solutions. If you’re interested in software development for healthcare that incorporates trending technology and advanced features, contact us at Scopic for a quote. 

About Healthcare Software Development Guide

This guide was authored by Baily Ramsey, and reviewed by Alan Omarov, a Technical Lead with experience in leading and delivering complex software and application development projects.

Scopic provides quality and informative content, powered by our deep-rooted expertise in software development. Our team of content writers and experts have great knowledge in the latest software technologies, allowing them to break down even the most complex topics in the field. They also know how to tackle topics from a wide range of industries, capture their essence, and deliver valuable content across all digital platforms.

Note: This blog’s images are sourced from Freepik.

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