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Healthcare Business Model: How to Start and Scale a Healthcare Business in 2023?

500 Views | 2 min | Published On: August 11, 2023 Last Updated: December 29, 2023
Healthcare Business Model

In today’s digital age, our reliance on smart devices has surged exponentially. The app market is flooded with millions of offerings, encompassing a wide spectrum of functionalities. Among these, healthcare apps stand out as a highly sought-after category. This growth in popularity is attributed to the combination of technological advancement, increased smartphone usage, improved global Wifi infrastructure, and smooth access to knowledge. 

Modern healthcare system utilizes wearable and ingestible sensors for diagnosing illnesses, tapping into mobile apps to enhance patient care. The demand for healthcare app development is growing due to rapid industry evolution. The sector’s swift growth is poised to hit billion-dollar levels soon.

Healthcare Business Model

According to Data Bridge Market Research, the mobile healthcare apps market is projected to surge from USD 6.89 billion in 2022 to USD 50.94 billion by 2030, with an anticipated CAGR of 28.4% from 2023 to 2030. 

In 2021, IQVIA reported over 350,000 digital health apps in app stores, fueling market expansion. This highlights the growing demand for Healthcare App Development and underlines the expanding landscape of digital health solutions.

Going ahead in this blog, we will explore the healthcare business model, examining its intricacies and potential for innovation and growth but first let’s see what keeps a majority of the startups away from success. 

Why do Healthcare Startups Fail In-general?

As healthcare business models continue to innovate through mobile healthcare application development, a staggering 8 out of 10 such apps fall short of meeting modern customer expectations. This failure often stems from a lack of well-defined strategy, technical guidance, and meaningful impact that addresses key healthcare challenges. 

Gaining insights into the reasons behind the majority of healthcare startup failures offers valuable lessons for avoiding pitfalls and crafting a successful healthcare application. Let’s delve into the factors contributing to the downfall of healthcare startup ideas.

Non-Compliance with Business Standards: Ignoring healthcare regulations and compliance standards can lead to legal troubles and hinder your startup’s growth.

Clinical Trials Requirement: If your healthcare app requires clinical trials, meticulous planning and adherence to scientific standards are essential for credibility and effectiveness.

Poor Connection with Users and Medical Professionals: Failing to engage potential users and healthcare experts during development can result in a blend that doesn’t address real needs.

Consumer-Grade vs. Professional-Grade: Clarify whether your app targets consumers for healthcare professionals, as the development and marketing approaches differ.

Representative Status: Understand the implications of representing a healthcare institution and ensure a clear strategy for adoption and integration.

Payment and Reimbursement Dynamics: Misinterpreting payment and reimbursement structures can affect revenue generation and sustainability.

In the journey of any startup, particularly within the healthcare domain, ample opportunities for misjudgments exist.  If you’re harboring healthcare business startup ideas, Apptunix’s expertise can help transform them into a well-structured and enduring business model.

enduring business model

Why Is Healthcare App Development Important for Business? 

As reported in the Expert Review of Pharmacoeconomics and Outcomes Research, mobile health application downloads witnessed a remarkable 65% growth in 2020. The healthcare apps category held a commanding position in the mHealth market during 2022, capturing a substantial revenue share of 97.0%. This dominance is fed by the heightened patient and healthcare professional interest in embracing healthcare apps to enhance communication and healthcare results.

Healthcare applications offer valuable advantages to both healthcare professionals and the general public, transforming the way healthcare is accessed and delivered. Let’s explore the benefits it brings to each side individually.

Benefits for Healthcare Professionals Benefits for General Usage
Accurate Diagnosis Personalized Health Insights
Real-time Communication Appointment Scheduling
Streamlined Patient Management Telehealth Services
Remote Patient Monitoring Medication Tracking
Efficient Access to Medical Records Access to Medical Information
Data-driven Decision-making Health Recommendations
Enhanced Treatment Planning Payment Security

This table highlights how healthcare mobile apps integrated with IoT solutions can play a pivotal role in creating a successful business model, leading to better patient care, more informed healthcare decisions, and optimized resource management.

What Are Some Innovative Types of Healthcare Mobile Apps?

The healthcare app market caters to a variety of applications each providing a unique solution. These apps can be broadly categorized to serve patients, healthcare institutions, and medical professionals. The ever-growing availability of these apps is an indication of the evolving digital healthcare ecosystem.

Within the realm of healthcare applications, there exists numerous options tailored to meet specific requirements. These include:

1. Patient-Centric Apps: 

These personal healthcare applications are designed to empower individuals in managing their health, offering features for self-care.

Patient-Centric Apps:
  • Fitness and Wellness Apps

They promote physical well-being and health, aiding users in fitness routines, diet planning, and overall daily wellness management. The purpose is to help users make positive lifestyle changes. 

  • Medication Management Apps

These apps help users organize and track their medication schedules, doses, and refills. They also send reminders, reducing any potential risks and improving adherence to treatment plans. 

  • Women’s Healthcare Apps

Tailored to provide information and tools to support women’s health needs. They cover menstrual tracking, pregnancy guidance, and fertility monitoring and offer insights on women’s wellness, for better overall health. 

  • Personal Health Record Apps

It’s hard to manage medical records physically these days. PHR apps enable users to digitally manage and store their medical information, including health history, medications, lab results, and appointments. 

2. Healthcare Institution Apps: 

Efficiency in medical facilities and hospitals is a must, these apps streamline tasks such as appointment scheduling, patient records management, billing, and smoothing administrative processes.

Healthcare Institution Apps:
  • Electronic Health Record (EHR) Systems

EHR enables easy access to comprehensive patient information and treatment decisions. They facilitate seamless communication among healthcare professionals, reducing errors and ensuring coordinated care. 

  • Appointment Scheduling Apps

This simplifies the process of booking and managing appointments for both healthcare providers and patients. This technology improves clinic efficiency and ensures timely access to healthcare services.

  • Patient Billing Apps

Payment apps enhance financial transparency and overall operational efficiency in the healthcare industry. Healthcare institutions benefit from reduced paperwork, faster payment processing, and improved revenue cycle management.

  • Patient Engagement Platforms

Healthcare institutions can use these apps to educate patients, share relevant health information, and gather valuable feedback, ultimately strengthening relationships and enhancing healthcare delivery.

3.Medical Professional Apps:

These applications are tailored for healthcare providers, enabling them to access medical literature, reference databases, diagnostic tools, and collaborative platforms for seamless information sharing.

Medical Professional Apps: 
  • Clinical Decision Support Apps

By Integrating patient data and the latest medical research, these apps offer real-time information about drug interactions and evidence-based treatment options. They empower healthcare professionals to stay up-to-date with evolving medical information, leading to better decision-making.

  • Anatomical Reference Apps

These apps provide healthcare professionals with interactive 3D models and diagrams that aid in understanding anatomy, physiology, and medical procedures. Anatomical reference apps enhance medical learning and facilitate accurate communication among healthcare teams. 

  • Continuing Medical Education (CME) Apps

CME apps offer interactive courses, lectures, quizzes, and case studies that allow doctors, nurses, and other medical practitioners to enhance their skills and stay updated with the latest advancements in their fields. 

  • Telemedicine Platforms for Doctors

It allows doctors to connect with patients in real-time, diagnose medical conditions, offer treatment recommendations, and even prescribe medications, all from the comfort of their location. This platform typically includes video conferencing, prescription management, and secure messaging. 

Each of these categories addresses specific needs within the healthcare ecosystem, contributing to a comprehensive digital healthcare experience for everyone. 

5 Revolutionary Healthcare Business Startup Ideas

As a healthcare business startup founder, your foremost concern is ensuring the success and profitability of your company. It’s like a puzzle – finding how to start and scale a healthcare business in 2023 that perfectly fits your client’s needs and tackles their challenges which could be a game-changer.

And guess what? The health industry’s future looks promising. According to the U.S. Bureau of Labor Statistics, employment in healthcare-related roles is set to jump by a whopping 18% from 2016 to 2026 – way faster than the average for all fields. Now, let’s turn our gaze to the healthcare startup ideas that could make you a game-winner. 

  • Medical Supply Sales:

To address the continuous medical supply requirements of seniors, individuals with disabilities, and those managing chronic illnesses is a great startup idea with a cause. Essential items such as walkers, braces, and bedpans contribute to their well-being. 

While establishing a brick-and-mortar store is a conventional approach, keep in mind the potential difficulty in access for your target audience. Thus, opting for an online store appears to offer better accessibility. Thorough research will guide you in selecting the right products and devising effective marketing strategies, ultimately enhancing the lives of those you serve.

  • Transcribing Services: 

Enhance healthcare documentation accuracy and efficiency with a healthcare mobile app idea that offers AI-powered transcription services. Empower medical professionals to convert voice notes into precise written records, streamlining patient care and record-keeping.

InSync Healthcare Solutions is a good example to look at. By leveraging technology, they aim to enhance the efficiency, accuracy, and overall effectiveness of healthcare service delivery.

  • Childbirth Centre:

In the U.S., maternal mortality is 50% higher for women compared to their mothers, warns Dr. Neel Shah in Harvard Health Blog.

Embark on a healthcare business startup idea focused on supporting expectant parents. Design an app that provides prenatal care guidance, connects users with certified healthcare providers, and offers a platform for prenatal classes and resources, ensuring a smoother journey to parenthood.

  • Medical Billing Services:

The lack of efficiency in the billing process within hospitals presents a fertile ground for innovative healthcare business ideas. Develop an app that simplifies billing procedures, reduces errors, and accelerates reimbursement for healthcare providers, ensuring seamless financial transactions. 

  • Medical Blogging:

Dive into a healthcare app idea that promotes medical awareness and education by creating an informative website that users can recommend. Create a platform where medical experts and enthusiasts can share insights, research findings, and health tips, fostering a knowledgeable and health-conscious community.

Collaborating with professionals who specialize in healthcare app development services ensures that your healthcare app idea is crafted with precision, meets industry standards, and addresses the unique needs of both users and the healthcare sector.

Time and Cost For Developing Mobile Healthcare Apps and Factors Affecting Them

This is a pivotal question, and to determine The Cost Of Building A Healthcare App, we need to explore the key factors that directly influence the development process. So let’s find out:

  • App Intricacy and Features 

A perfect App is feature-good. The more complex and feature-rich the app is, the higher the development cost. Features like EHR integration, telemedicine, real-time data tracking, etc., can significantly impact the overall cost. 

  • Platform

Developing for IOS, Android, or both platforms affects the cost factor. Native apps are generally more expensive than cross-platform apps. It’s important to conduct thorough market research before making a sound decision. 

  • Design

UI UX Design and Development Services contribute to the overall cost. A well-designed app for quality experience often requires more effort and professional expertise.

  • Development Time Frame

The timeframe for app development can vary widely depending on the complexity of the app, the features required, the development approach, and the resources available.   

The development time directly affects the overall cost. Rushed development may lead to higher costs. Make sure that you consult professionals before jumping to a decision. 

  • Testing

Rigorous testing ensures that the app functions match your healthcare startup ideas. It also provides a secure environment and offers a seamless user experience. While these activities contribute to the overall development cost, they are essential for delivering a reliable and user-friendly healthcare app.

  • Security and maintenance 

The journey doesn’t end with the app launch. Ongoing maintenance, regular updates, and continuous support are vital for the long-term success of a healthcare app. These activities ensure that the app remains functional, bug-free, and up-to-date with the latest technologies and industry standards. 

While they do add to the overall cost, they are essential investments to keep the app relevant, user-friendly, and aligned with any changes in regulations or user needs over time. 

  • Choosing the Right healthcare App Development Company

The selection of the healthcare app development company plays a significant role in determining the cost. Different companies have varying rates based on their experience, location, reputation, and portfolio. It’s notable to conduct research and compare app development companies to find the one that aligns with your budget, project requirements, and quality expectations. 

While there are factors to overcome for your successful healthcare startup idea to come to life. Determining the precise cost of developing a healthcare app requires a comprehensive understanding of your unique needs and goals which can only be received when consulted personally with a professional. 

However, as a rough guideline, building a simple healthcare app with essential features can start at around $30,000 to $35,000 with a timeframe of 8 to 9 weeks. Moving up for more complex apps with advanced functionalities may range from $70,000 to $75,0000 or more which will take approximately 16 to 18 weeks to complete.

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We’ve covered a comprehensive range of essential aspects for building a successful healthcare business model. Now, let’s delve into some bonus insights that can further enhance your understanding and prepare you for the dream project. 

Trending Features to Implement in Your Healthcare App in 2023

Staying ahead of the curve in the rapidly evolving healthcare app landscape is more necessary than ever before. Here are some trending features that can elevate your healthcare app and why they hold significance:

  • AR/VR (Augmented Reality/Virtual Reality): 

AR and VR offer immersive experiences for medical training, therapy, and patient education. They enable realistic simulations, enhancing medical education and providing innovative ways to treat and manage conditions.

Iowa’s Spencer Hospital deployed an AR VR app development using SLAM technology for safer procedures and precise diagnostics. Doctors use smartphones to visualize inner organs, enhancing biopsies by 50% and aneurysm surgery accuracy by 30%.

aneurysm surgery accuracy by 30%.
  • Blockchain

The impact of blockchain on healthcare is profound, spanning clinical trials, data management, and digital systems enhancement. Its secure, transparent data exchange fosters interoperability, bolstering patient-provider relations. With growing acceptance, blockchain integration is on the rise, revolutionizing healthcare with each passing day.

Blockchain
  • IoMT

Integrating IoMT with mobile apps and wearable devices is a dynamic process that empowers healthcare by extending real-time monitoring and personalized care to patients. This synergy involves crafting seamless communication between the IoMT network and wearable devices, allowing the continuous exchange of health data. 

Through APIs and secure protocols, wearable devices transmit crucial health metrics to the mobile app, which acts as the central hub for data aggregation and analysis. 

Also Read: [How to Implement IoMT in The Healthcare Sector?]

  • AI in Healthcare Systems 

The revolutionary rise of artificial intelligence (AI) in the healthcare sector is transforming the ecosystem of diagnostics, treatment methodologies, and the monitoring of patients. AI’s vast applications range from early detection in radiological images to predicting outcomes from health records. Predicted to boost healthcare profitability by 55% by 2035, AI streamlines tasks like CT scans and checkups without human intervention. 

Leading tech giants like Microsoft and IBM offer AI-driven healthcare solutions, amplifying efficiency, accuracy, and patient care. AI’s transformative potential holds promise for a data-driven and patient-centric healthcare future.

  • Cloud-Based Healthcare Solution

According to Grand Research View, the healthcare cloud infrastructure market is projected to experience growth of around 16.7% to 17.5% over the next five years. Cloud technology ensures secure data storage, sharing, and remote access to patient information. It enhances collaboration among healthcare providers, improves scalability, and facilitates quick and secure data retrieval.

Integrating these technologies into your healthcare app empowers users with cutting-edge capabilities and paves the way for innovative solutions that can transform the industry.

How can Apptunix Help You Develop a Healthcare App?

Apptunix offers comprehensive support in developing healthcare apps, leveraging our expertise to deliver high-quality software with valuable features. With a full-service lifecycle approach, we guide you from initial concept to ongoing support, providing industry insights to ensure your app’s success. Our Healthcare Application Development excels in process and strategy, refining your idea through business analysis, market research, user personas, and a tailored roadmap, guaranteeing a well-defined and goal-oriented product.

Our capabilities encompass:

  • Custom Healthcare Software Development
  • Telemedicine App Development
  • Clinic Management System
  • mHealth Solutions
  • Patient Portal
  • Pharma Application
  • HIPAA-Compliant Software
  • EHR and EMR Solutions

Apptunix empowers your healthcare mobile app ideas, aligning them with a strong healthcare business model and startup vision.

Frequently Asked Questions(FAQs)

Q 1.What is the best technology for healthcare app development?

The choice of technology for healthcare app development depends on the app’s complexity and goals. For robust performance and broad reach, a combination of platforms like iOS and Android, and programming languages like Swift, Java, or Kotlin, along with cloud integration, AI, and IoT capabilities, can ensure a seamless user experience and data security.

Q 2.What challenges are faced in healthcare app development?

Healthcare app development involves challenges like ensuring HIPAA compliance, maintaining data security, integrating with complex healthcare systems, gaining user trust, adhering to regulatory standards, and providing a seamless user experience that meets healthcare professionals’ and patients’ needs.

Q 3.What is the estimated cost of developing a healthcare app?

The cost of developing a healthcare app varies based on factors like technologies, features, platforms, design, and geographic location of development. On average, a basic app might cost around $30,000 to $35,000, while highly advanced apps with trending features can range from $70,000 to $75,000 or more.

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