Building SaaS Healthcare Software: Benefits and Development Tips

Technological progress is crucial for the healthcare industry: evidently, old solutions take more money and are more difficult to implement. In this advancement, SaaS takes the front seat. In 2024, AI (22%), virtual care/telehealth 19%, integration (12%), and EHR (8%) were among the main tech directions that had the most progress in the U.S. What is the model uniting all of these? Software-as-a-Service (SaaS) industry — an attractive field for investment. The healthcare SaaS market size is witnessing constant expansion, becoming the industry standard in many developed countries. This is caused by the increase in patient numbers and a growing emphasis on innovation. In 2020, healthcare SaaS value was  $12.5 billion in 2020, and the research estimates that it will grow at a CAGR of 19.5% from 2021 to 2025. Current predictions suggest that an increasing number of enterprises will adopt it as time passes, and the trend doesn’t seem to change. 
Why the switch, though? The last ten years went through a huge transformation. With people living longer and healthier, healthcare SaaS became a natural response to an increase in patient data. This also combines with the trends in remote healthcare market size: in 2023, it was priced at $11.0 billion, and its CAGR will grow by 16.5% from 2024 to 2030. Traditional on-premise software solutions don’t keep up with progress anymore, and their costs are rising exponentially. SaaS healthcare applications are cheaper, more accessible, and provide enough diversity to suit most clients. Building one, however, is much more difficult than making a ready decision — though the healthcare SaaS market will welcome newcomers who deliver the right value. 
This article will explain what healthcare SaaS apps are, outline why they benefit organizations offering medical help, cover top healthcare SaaS companies, and show how to develop SaaS healthcare software that will remain relevant over time.

What Is SaaS Healthcare Software?

The main question first: what SaaS healthcare software actually is? It’s a cloud-based technology that provides cloud-based infrastructures that allow medical institutions or practitioners to access specific applications without buying or maintaining on-site systems. Unlike traditional healthcare applications, SaaS healthcare programs don’t require installation and management by the healthcare provider — it’s done by the third party providing this opportunity. 
As a rule, SaaS healthcare applications target different aspects of healthcare, from EHR to telemedicine. They can also focus on non-healthcare-specific tasks like billing or insurance processing. These platforms aim to simplify the existing local programs by switching them to the cloud. The overall healthcare cloud computing market is projected to reach $115.95 billion in 2029 — a number as baffling as it is logical. So, SaaS for the healthcare industry is popular, and more will emerge soon. Unlike in-house software products that are bought once and don’t need a regular renewal, SaaS solutions exist on a subscription basis and usually have diverse payment plans that can suit companies offering medical support and assistance to different audiences. 

Key Benefits of SaaS Healthcare Software

Even though healthcare SaaS software is already here, understanding all of its benefits can be tough for those used to the appeal of in-house infrastructures. However, it has a significant value, and we’ve highlighted the main advantages of switching to it below.

Scalability & Flexibility

The healthcare sector is immensely dynamic: sometimes, companies need to rapidly advance and expand, while in other cases, they need to cut back to save money and other resources. In-house programs usually have a limited capacity in that regard, and the same product may not be a good fit for several months or years from now on. Solving this challenge has been long overdue: in 2022, 23% of healthcare leaders globally reported limited technology infrastructure as the leading hindrance to the effective use of data. A healthcare SaaS startup can increase the number of users or data servers, expand their services, or introduce new features without the need to transform the entire system. 

Faster Deployment & Updates

On-site applications take much longer to update and launch and need good compatibility with the company’s other programs. Some traditional systems can take even up to years to start using them properly, which is often impossible and non-feasible in the contemporary healthcare sector. When it comes to SaaS healthcare apps, users can immediately start working with them after signing up. Updates are another advantage that takes the burden off the medical company choosing SaaS. SaaS providers handle all maintenance and upgrades, ensuring that healthcare organizations always use the most up-to-date version of the software. This means managers on-site don’t have to pay attention to it — except for cases when some upgrades require manual involvement or something doesn’t work.

 
Enhanced Security & Compliance

Healthcare is particularly vulnerable to sensitive data threats because it includes patient health records, their treatment and security details, and billing data. Failing to protect data in healthcare leads to severe financial loss. The average cost of a data breach in healthcare is $11 million, with overall financial losses in 2024 rising by 10%, marking the highest increase ever recorded. High-quality and reliable cloud providers (which are the only ones we advise you to use) have high standards in security and data protection. SaaS healthcare programs must adhere to healthcare data safety regulations and legal standards like HIPAA (Health Insurance Portability and Accountability Act) and GDPR (General Data Protection Regulation). Many healthcare managers and company leaders struggle with concentrating on core operations and security simultaneously, so using third parties to do so is a viable and attractive option. 

Improved Accessibility & Remote Work

There’s no need to invest in complex on-site systems to run medical programs and manage patient health data — the Internet has eliminated this. In the past, healthcare professionals had to be physically present to carry out their tasks, but SaaS solutions have made that requirement far less rigid. As telemedicine becomes more prevalent, many providers have switched to alternatives. Some medical specialists prefer a solely remote job approach; on the other hand, lots of vulnerable populations can’t access medical facilities. SaaS healthcare platforms enable professionals to securely access health records from any device, whether for remote tasks or telehealth services. This benefits both sides, which has called for a greater SaaS tech surge. By balancing security with accessibility, these systems reduce the risks once associated with personal device logins while enhancing efficiency and job satisfaction.

Seamless Integration with Other Healthcare Systems

Sometimes, even the best healthcare programs can fail to connect with other healthcare systems because each application is made separately. Fortunately, building SaaS healthcare software allows for the development of infrastructure designed to integrate seamlessly with other systems. Such interoperability is particularly important because healthcare workers interact daily with EHRs, billing software, and patient scheduling platforms — so this innovation makes it easier and more reliable as all systems integrate. APIs (Application Programming Interfaces) or pre-built integrations with other popular healthcare tools support seamless data exchange between systems. This contributes to better workflows and a reduction in manual data entry errors on top.

Healthcare SaaS app examples

Impressively enough, today’s healthcare industry already relies on SaaS applications, and their efficiency is visible in the examples we’ve listed below. We’ve picked three healthcare SaaS examples that have entirely different focuses.

• CareCloud. Calling itself a modern cloud-based solution for healthcare companies, CareCloud is a software that handles revenue cycle management, EHR, practice management, digital health, telemedicine, and more. The company was founded in 1999 and has expanded and innovated its healthcare SaaS app since. Its centralized system covers most of the existing healthcare software needs and remains a flexible option for businesses of varying sizes and levels. It supports more than 40k providers in more than 70 specialties.
• Doctor on Demand. Doctor on Demand connects healthcare professionals with patients in need of telehealth services. It allows them to communicate via video or text consultations. Founded in 2013, it’s a much younger SaaS healthcare platform that has responded to the growing need for from-home medical apps. It benefits both sides by allowing potential patients to choose between options and schedule consultations. Healthcare specialists rely on Doctor on Demand to fill and check patient records, conduct virtual conversations, and process payments. 

• UpToDate. This evidence-based platform enhances decision-making for medical professionals by giving them access to reliable research and medical materials. It has real-time updates on medical conditions and treatment strategies. UpToDate was launched in 1992 and has been expanding its library since then. Gradually, it has joined the list of the best healthcare SaaS companies globally. It is available on all devices and in the EHR, and its team comprises over 7,000 medical specialists in varying fields. Plus, it allows users to earn CME/CE/CPD credits. 

  
  Development Tips for Building SaaS Healthcare Software

  
  How to develop a healthcare SaaS application? Below are the main factors to consider before diving right in.

  
  Pay attention to product and market discovery

  
  Even though this aspect isn’t technically development, it’s one of the most essential ones. Companies’ cases above have outlined three types of SaaS software, each flourishing in its niche. We listed these to illustrate how diverse SaaS in the healthcare industry is. Start by conducting thorough market research to understand the challenges healthcare providers face and what gaps exist in current healthcare SaaS solutions. If you can, engage with potential customers and discuss what options they have now and what they would like to see in future software. This step will give you plenty of resources and inspiration to find a suitable solution.

  
  Create users’ personas and envision their journey

  
  Healthcare services are used by individuals belonging to diverse categories, from doctors or nurses to administrative staff and researchers. Each user group has its distinctions, so a user persona will help service owners identify their journey. A SaaS healthcare company should map it up for its chosen audience and consider the main touchpoints and potential difficulties along the way. This will ensure that your SaaS application has a personalized scenario for every client and tailors functionality to them. 

  
  Security above all — prioritize it

  
  We have already highlighted why security is central to healthcare, but it’s not just important. It should be placed at the center of all healthcare SaaS development objectives and procedures. Developers should ensure the application adheres to the aforementioned guidelines and ethical standards, both nationwide and locally. Develop strong data encryption methods that will help you avoid data breaches and sabotaging users’ anonymity if someone accesses it. This prioritization will immediately place your app on a top SaaS based healthcare software level, and your future clients will be more loyal to your app.

  
  Keep flexibility and growth in mind

  
  Don’t limit yourself to the question, “How to create a SaaS healthcare app?” because it’s only the beginning. Once your SaaS healthcare software is launched, you can face an overload of users and be unable to process all the incoming input. To avoid such failures, focus on agility beforehand. Because SaaS systems are already built on cloud infrastructure, you already have this advantage in your pocket — but be ready to expand your horizon. Add servers that can scale horizontally or vertically. Moreover, apply modular design patterns as your SaaS platform will need to change and add new features as you progress and diversify your services. 

  
  Seamless user experience (UX) is the way

  
  Imagine a healthcare provider who’s in a hurry but cannot finish logging in information because they can’t find the right button. That’s what poor UX can do, so try to make your design as intuitive as possible. Design a simple and clean UI, later test it with healthcare specialists to get their insight, and test some more. Make the navigation easy, and don’t overcomplicate the interface. Medicine is one of the most time-restricted resources, so be wary of every extra second you add to the functionality during your SaaS healthcare software development stage.

  
  Keep interoperability with other systems in mind

  
  Let’s briefly return to this feature. The entire healthcare system is a complex set of connections that integrate flawlessly (in theory, at least) with other software. The Internet brings this closer to realization as all programs and datasets often exchange information at record speed and move from one function to the other. A healthcare SaaS company should focus on flexible APIs that can connect with other platforms for better performance and envision (or practice) the digital healthcare ecosystem where every element serves the general purpose but can operate independently. 

  
  How to Choose a SaaS Healthcare Software Development Company?

  
  Picking the perfect healthcare SaaS product development company is a complex task, especially if you’re not tech-savvy to create an app by yourself or don’t have experience working with development teams. We’ve listed some tricks you can try to get closer to the development team just for you. 

  
  1. Industry experience. When looking through all the options and companies, search for those with a proven track record of developing healthcare applications or SaaS systems at least. This healthcare SaaS industry requires a skill set that’s not always present in development teams. Look for cases and ask specifically for healthcare SaaS software solutions that the candidates previously provided.
  2. Reputation. The healthcare industry rarely forgives reputational mistakes, so choose the team carefully. If it has gained lousy publicity due to previous mistakes or severe errors, it can directly affect your SaaS app in the future. A blow to a startup in healthcare can cost dearly, and recovering from it is extremely difficult. Look for news articles and reviews online before putting another candidate on your list.
  3. Evaluate the technological stack and tech resources. Every development team specializes in distinct technologies and creates apps with its preferred technological stack. Inquire about their technological stack for building a SaaS healthcare app — such as cloud infrastructure, programming languages, and frameworks. Consider if these are the ones you need for your own healthcare SaaS app or if they don’t quite suit what you’ve got in mind. 
  4. Review portfolio and case studies. You can ask every development team about its customizability and personalization regarding app creation, but examples work best. Ask the SaaS healthcare software development company for case studies or examples of previous healthcare projects they’ve worked on. A strong portfolio should encompass a variety of functionalities, including seamless platform integration, catering to diverse user groups, and supporting different types of applications. However, study more than just the examples; search the outcomes of each project and how they turned out. 
  5. Analyze financial feasibility. Everyone has different budgets: smaller healthcare SaaS startups cannot afford some of the more expensive development companies, and they shouldn’t overextend their budget. Request a detailed proposal that outlines the project scope, timeline, and estimated costs. Carefully consider if you can afford these expenditures. On the other hand, some companies are afraid of investing too much in their product, which will eventually backfire. Those businesses offering surprisingly low-cost solutions may lack the necessary expertise in security features. 

  
  Your future of SaaS healthcare software 

  
  Developing SaaS for healthcare organizations is a resourceful and smart way to enter this promising field. This will enable ambitious enterprises to test their creativity and exercise attractive revenue opportunities — and the options for innovation and niche market segments are endless. Having such a chance is truly appealing, but it takes more than just an idea to get started.
  Need help with healthcare SaaS application development? Contact us. We have diverse experience creating apps for heterogeneous audiences and developing customized solutions for every client.