In the healthcare industry, major players like pharmaceuticals, health insurance providers, and health technology companies rely on custom software solutions for key business needs. These include improving patient care, enhancing operational efficiency, and ensuring regulatory compliance. However, amidst the complexities of this highly-regulated industry, deciphering Return on Investment (ROI) for custom healthcare software presents unique challenges and considerations. In this blog post, we'll explore the intricacies of ROI assessment within the healthcare industry, shedding light on how organizations in insurance, pharma, and healthtech can optimize custom software investments to drive tangible value, simplify complexities, and accelerate capacity with the help of Significo.
Understanding ROI in Healthcare Custom Software Development
At Significo, we understand that ROI in healthcare extends far beyond financial gains (which are also important). It encompasses improved patient outcomes, enhanced operational efficiency, regulatory compliance, and strategic growth. Custom healthcare software solutions tailored to address specific challenges in insurance, pharma, and healthtech hold the potential to unlock a myriad of benefits, from implementing predictive analytics to streamlining clinical trials and drug development, to empowering personalized patient care. Recent studies have shown that each sector is prioritizing software and technology solutions:
- Pharmaceuticals: Two out of three pharmaceutical companies are intending to boost investments in software and technology in an effort to streamline intricate processes and adopt new tech.
- Health Insurance Providers: In a recent study, 56% of U.S. healthcare provider executives cited software and technology as one of their top three strategic priorities.
- Health Technology Companies: By 2025, technology-driven innovation is expected to be worth between $350 billion and $410 billion annually, with two-thirds of U.S. adults using mobile health apps.
Factors Influencing ROI in Healthcare Custom Software Investments
Health Outcomes: By leveraging advanced algorithms and data analytics, custom software enables payors to optimize healthcare management processes, providers to deliver personalized care at scale, and pharma companies to streamline clinical trials and drug development. An AI-driven monitoring and alert system Significo developed helps identify health issues in real-time, enabling early intervention in order to reduce healthcare costs.
Operational Efficiency: Through automation of administrative tasks, optimization of workflow processes, and seamless integration across various systems and platforms, these custom healthcare solutions contribute to significant cost savings and efficiency gains within healthcare organizations. A caregiver assistant Significo built streamlines the benefits application process to save time and resources for caregivers and benefits providers, and improves retention by solving user frustrations, streamlining processes, and increasing efficiency.
Patient Engagement and Satisfaction: In the insurance and pharmaceutical sectors, digital communication is increasingly favored by patients, with a notable 80% expressing a preference for it when engaging with their healthcare providers and brands. This highlights the importance for these industries to invest in custom software solutions that facilitate seamless and effective digital interactions between patients and healthcare professionals. Patient-centric software applications empower individuals to actively participate in their healthcare journey, fostering greater engagement, satisfaction, and adherence to treatment plans. Our portfolio of personalized health recommendation tools engages members/patients in their healthcare journey, improving adherence and participation, reducing healthcare costs through prevention, and optimizing resource allocation and reducing unnecessary expenses.
Regulatory Compliance: Compliance with stringent regulatory requirements, such as HIPAA (Health Insurance Portability and Accountability Act) in the United States, is paramount. Significo’s custom software solutions adhere to all regulatory standards to mitigate compliance risks and potential penalties.
Data Security and Privacy: The healthcare industry generates an estimated 30 percent of data worldwide. Protecting sensitive patient data from cyber threats and ensuring robust data security measures are in place are critical considerations for healthcare organizations investing in custom software solutions. Significo is ISO 13485 Certified and HIPAA Compliant, to assist in ensuring the highest standards of quality and security in healthcare software development.
Calculating ROI for Healthcare Custom Software Investments
Identify Key Objectives: Start by identifying the primary objectives of your custom software development project. Are you looking to improve operational efficiency, enhance patient engagement, reduce costs, or achieve regulatory compliance? Clearly defining your objectives will help you measure the impact of the project and calculate its ROI more effectively.
Estimate Costs and Benefits: Quantify the costs associated with software development, implementation, training, and ongoing maintenance, alongside estimating the anticipated benefits. For example, if the objective is to improve operational efficiency, calculate the time and cost savings that the software solution is expected to generate. If the objective is to enhance patient engagement, consider metrics such as patient satisfaction scores, appointment adherence rates, and patient outcomes.
Calculate ROI: Once you have quantified the benefits and estimated the costs, you can calculate the ROI of your custom software development project using the following formula:
ROI = (Net Benefits / Total Costs) x 100
Net Benefits = Total Benefits - Total Costs
This formula will give you a percentage that represents the return on investment of your custom software development project. A positive ROI indicates that the project is expected to generate value for your organization, while a negative ROI may suggest that further evaluation or adjustments are needed.
Track and Measure: Once your custom software solution is implemented, continue to track and measure its performance against the initial objectives and metrics. This will allow you to monitor the ROI over time and make any necessary adjustments to optimize the solution's impact.
Return on Choosing Significo for Custom Healthcare Software Development
Resourcing: Our team of software engineers, developers, and experts are in place, experienced, and able to begin immediately to quickly bring your solution to life.
Scalability: Significo's solutions are designed with scalability in mind, ensuring that as your healthcare organization grows, our software can seamlessly adapt to meet your evolving needs.
Prevention: Significo specializes in personalized health recommendations based on a variety of data inputs, from user behaviors to genetic testing. Preventative health reduces costs associated with chronic conditions, lack of engagement, and inefficiency/absenteeism.
Cost Reduction: Outsourcing projects to a software development partner like Significo helps optimize costs while maintaining quality.
Security and Compliance: Significo adheres to the highest standards of data security and privacy, including being ISO 13485 Certified, CCPA Compliant, and HIPAA Compliant, mitigating risks associated with data breaches and regulatory non-compliance.
Dedicated Support: Significo provides dedicated support throughout the entire lifecycle of the custom software development process and beyond. From initial consultation and planning to implementation, training, and ongoing maintenance, Significo's team of experts offers personalized support to ensure smooth deployment, optimal performance, and customer satisfaction.
Navigating healthcare software investments demands a thorough understanding of ROI's multifaceted nature. With Significo's commitment to excellence in custom healthcare software development, organizations can confidently leverage tailored solutions to enhance patient care, streamline operations, and ensure regulatory compliance. By harnessing the power of strategic partnerships, healthcare entities have the potential to unlock substantial returns on their software investments, paving the way for a more efficient future in healthcare delivery.
