How to Choose the Right Healthcare Software Vendor?

Do your projects often run late or over budget? A healthcare software vendor can help. They bridge the gap between what your team can do and the demands of complex technology projects of our time. Staying compliant or integrating with EMR systems on an enterprise level? They have your back — but only if you choose the right one.

The right vendor brings the expertise and resources you need to succeed, complementing your team’s strengths and helping you achieve your business goals. On the other hand, a bad partner causes missed deadlines, budget overruns, and technical issues that can ruin your reputation.

How do you differentiate between the two, especially when there's no one-size-fits-all software vendor for all healthcare SaaS companies?  This guide will help you select a suitable partner by evaluating your business needs and partner options. Let’s jump into it.

Understanding Your Business Needs & Problems

As a health tech company, you have a mission, vision, and ways to make both come to life through software development. So, the first step to picking a software vendor is examining your business needs and eliminating any partner options that don't fit the script.

Vendors should complement your team’s skills and fill any gaps within them, whether your in-house devs struggle with FHIR data standards or compliance. Their values and approach to software development should align with yours — the perfect business partner will keep the project on time, secure, and user-friendly.

Notice how we're saying 'vendor' and 'partner' interchangeably here. That's because the current needs shouldn't be your only consideration. When looking for a healthcare software vendor, it’s best to seek one who can become a part of your long-term vision.

Consider how your company plans to grow and change over time. If you want to enter new markets or offer more services, you’ll need vendors who can grow with you and adjust their solutions to fit your needs.  It’s also important to keep up with industry trends like AI and telehealth. Look for vendors innovating in these areas, as they'll help you stay competitive and make sure your solutions are up-to-date.

Lastly, consider what kind of help you need. Are you creating a new app, testing an idea with an MVP, or improving an existing product? The type of project will determine which vendors are the best fit.

Differentiating Between Software Vendors

Not all healthcare software vendors offer the same services, so to save time and effort, decide what you need before beginning your research.

It’s also important to note that a single vendor rarely handles an entire project. The complexity of our work as health tech companies often means different vendors contribute specialized expertise to a large project. For example, you may work with one partner on developing core features while partnering with another for high-level integrations like Epic.

Some healthcare software vendors specialize in ready-made solutions that are quick to implement. They’re ideal if you need a standard set of features with minimal customization. But if your project requires unique features or needs to solve specific business challenges, a custom solution may be the better choice. These vendors work with your team to develop software that aligns with your goals and specifications.

If you’re developing a new app, look for vendors with experience in creating solutions that integrate with existing systems. While entirely greenfield projects are rare in healthcare, you need a partner skilled in building new components that align with existing infrastructure. They should display the ability to work with standards like HL7, FHIR, and DICOM.

An MVP requires a vendor who can quickly develop core functionalities to test the market and gather feedback. The Vitamin team offers a 60-day MVP development plan, letting you get to market with a lean product that can adapt to real-world feedback. For a full product release, you need a vendor with robust development processes and a track record of bringing apps to market. They should present a SMART go-live plan before signing a contract.

Note on software-enabled solutions: In our service model, software is developed not as a standalone product but as part of a broader service offering. This approach combines tailored software with consulting services to solve your business problems.

For example, Vitamin Software assisted a healthcare tech client who was late and over budget. By prioritizing core user stories, we helped them streamline the development process. This approach saved money that would’ve otherwise been wasted on a delayed release, and we helped ensure the project would meet its new timeline and budget.

Evaluating Potential Vendors: A Practical Approach

How do you differentiate between good and bad offers once you find healthcare software vendors that align with your business needs? Let’s take it step-by-step to see what you may examine in each potential vendor.

Start by evaluating each vendor’s experience in the healthcare industry, and prioritize ones with a track record working with health tech companies like yours. Examine case studies and client testimonials to understand how the vendor has addressed challenges in the healthcare sector. Focus on projects that align with your needs — the more experienced they are, the better.

Once you narrow down your option pool, look for awards or certifications that indicate expertise in healthcare. Certifications like FHIR, ISO 27001, and SOC2 are major green flags. You should also read third-party evaluations and reviews to get a feeling of the software vendor’s quality in real-life relationships with clients.

Finally, check the software vendor’s compliance and security measures. During the first meeting, ask about their approach to cybersecurity, including questions about data protection and relevant certificates. To be safe, we also suggest that you arrange a session to review their security practices and compliance measures in detail. It may involve a technical audit or a discussion with their IT and compliance teams. This sounds like a lot, but it's a solid start of vendor risk management, which must be thorough before bringing a new vendor on board in the healthcare industry.

Before signing, examine the detailed proposal, negotiate terms, and confirm support and training to be provided. It’s also wise to check their financial stability and get a legal green light for the contract.

Your Vendor Evaluation Checklist

Here’s a quick way to evaluate your software vendor (note that you're aiming for at least ten yes-es):

• Have they worked on healthcare software projects similar to yours?
• Are they familiar with relevant healthcare regulations and compliance?
• Are communication channels clear and consistent?
• Are they open to using your preferred methodologies?
• Do they have the technical skills and resources you need?
• Can they integrate with your existing systems and infrastructure?
• Can they scale services to meet changing project needs?
• Are they adaptable to changes in project scope?
• Do their values align with your company’s culture?
• Are they committed to a long-term partnership?
• Do they have plans for addressing potential project risks?
• Are they transparent about potential challenges and solutions?
• Is their pricing transparent and within your budget?

Final Thoughts & Key Takeaways

Selecting the right healthcare software vendor impacts the success of your project. That’s why you must align your choice with your immediate needs and long-term goals. Consider how well their solutions fit your requirements and how they will integrate with your systems. Pay attention to their expertise, commitment to security, and ability to deliver a solution that evolves with your needs.

Explore our blog today to learn more about successful vendor relationships and discover our top tips for healthcare SaaS projects.