Is Your Healthcare Software Vendor a Partner or Just Service Provider?

Is Your Healthcare Software Vendor a Partner or Just Service Provider?
  • September 18, 2024

Are your healthcare software vendors accountable and invested in your success? In healthcare, accountability in business refers to the vendor’s ability to meet their commitments. It includes being open about their capabilities, progress, and challenges so you’d know where you stand in every part of your project.

For those of us leading healthcare software projects, having an accountable partner means the difference between success and scrambling to fix unexpected problems. It ensures your projects are done on time and within budget while meeting all industry standards.

So, how do you know if your vendor is worth the trust you place in them, and in turn, the healthcare workers you're building software for? Let’s break it down.

phone and stethoscope

Vendor Green Flags to Seek Out

A vendor’s accountability influences the risks associated with your project, either introducing or mitigating them. In the healthcare SaaS domain, these risks have serious consequences, from cost overruns and delays to security and compliance issues. That’s why working with a healthcare software vendor who is accountable makes a world of difference.

Here’s how we can measure accountability in business:

  • Roles — tools like RACI (Responsible, Accountable, Consulted, Informed) define who is responsible for each task and decision.
  • KPIs — set SMART goals and measurable objectives that contribute to them. It’s the best way to check if your partners are accountable.
  • Performance reviews —  periodically review how your partner is performing against these KPIs, keeping everybody on track.

Integrating Accountability with Risk Management

Successful relationships with software development partners require a blend of accountability on their part and vendor risk management on yours. Here’s how you can bring these elements together:

two people shaking hands

  • Communication as risk mitigation. Good communication strategies are the basis of VRM. When you set clear expectations, you keep vendors accountable by showing that you expect them to share accurate information on time.
  • Contracts and risk sharing. The SLA should clarify what’s expected of your healthcare software vendor and which risks are their responsibilities. For bonus points, include penalties for delays and quality issues and rewards for performance.
  • Quality assurance and risk reduction. Healthcare software vendors should take a proactive approach to reducing risks and keeping their solutions high-quality. They may work with frameworks like ISO 31000 or NIST standards.

Don’t let vendor risk management be a consideration only at the contract signing stage. Even if working with a highly accountable partner that has a stellar record of communication, it’s good to maintain visibility on your end. Use a single project management system that both your internal team and vendors can access to prevent double-tracking, which is time-consuming and often unnecessary, and to have all information in one place.

Markers of Accountability for Tech Partnerships

Every company will say they’re accountable, but how do you really know if they are or aren’t? Trial and error is an option, but it’s costly and can do a lot of damage to your company — instead, here’s what to look out for in potential vendors:

  • The first sign of accountability is open, transparent communication. For example, the Vitamin team sends weekly executive updates to showcase our progress, and we have regular stand-ups for all active projects.
  • Healthcare SaaS projects often face delays, which is why many companies hire vendors in the first place. However, if your vendor is the one causing the delays, your entire timeline is at risk. To avoid this, look for a vendor who provides a detailed plan with SMART goals and a step-by-step timeline for meeting their tasks.
  • A vendor who cares about accountability will have quality control measures to guarantee good work. For this reason, the legal, cybersecurity, and QA teams should be involved in early discussions to examine real-world use cases and requirements for your software.
  • See how quickly and effectively the vendor addresses problems. A good way to check for this at the beginning of a project is by seeing how open they are about risks, and if they have mitigation strategies. Ones that appease you by not mentioning risks are a red flag.

Accountability in business basically means no surprises. From our eight years of industry experience, we know that in healthcare, this trait matters more than any other perk you can get from a software development partner.

Red Flags & How to Avoid Them

A lack of accountability in business practices is obvious once you know where to look. So, here are some red flags you may spot in your healthcare software vendor, and some steps you can take to mitigate them:

  • A lack of clarity. A vendor provides unclear responses about their development process and avoids sharing detailed project timelines or status reports. When asked for specifics about past projects, they only offer vague facts.

Request detailed progress reports and specific examples of their previous work. For instance, ask for a breakdown of their development phases and how they addressed similar challenges in past projects.

  • Overpromising and underdelivering. A vendor promises to deliver a complex feature in two weeks, but as the deadline approaches, they admit only making partial progress. They may also offer a quote that seems too low compared to industry standards.

Validate their assurances by checking references from previous clients and case studies of similar projects. For instance, if they promise a rapid development cycle, ask for a detailed project plan with milestones.

  • Poor post-implementation support. After implementing the software, you find the vendor’s support team slow to respond to critical issues, and there is no process for handling emergencies. The documentation is insufficient, making it hard for your team to troubleshoot problems.

Ask for an SLA that guarantees support within specified timeframes and includes provisions for training and documentation. Check if the partner’s support structure has dedicated personnel or a helpdesk for ongoing assistance. It should be their responsibility to triage and resolve any issues related to the software they’ve produced.

How to Choose the Right Software Development Partner

Choosing the right software development partner for your healthcare project starts with research. Referrals are the main way SaaS companies find vendors, so use your network to your advantage. Reach out to previous clients to learn if they deliver on their promises — patterns like this tend to repeat themselves.

Once you’ve shortlisted a potential software development partner, interview its key team members to get a feel for their communication style, problem-solving approach, and project management skills. This interaction will give you a sense of how they will work with your team — cultural fit matters as much as tech savviness.

Finally, remember the importance of vendor risk management. Even if a vendor appears accountable, you must have a plan to manage threats to your company. Do your due diligence to identify potential risks and develop mitigation strategies.

Notes on Understanding the Vendor Perspective

When working with healthcare software vendors, it helps to see things from their side of the table. Accountability is a two-way street, so here’s a closer look at how you may support it.

Most importantly, you must know how to handle vendors’ refusal to take on tasks. They won’t say it’s technically infeasible to do something but rather cite a lack of details, time constraints, or resource limitations. This can feel like a delay tactic, but it’s often about checking if they fully understand what’s needed to deliver a quality product. It’s also a totally natural tendency of people in the software development world, especially when it’s as high stakes as healthcare.

Instead of pushing back immediately, help them clarify the project scope. The more detailed you are, the better they can plan and execute, reducing delays.

Once they have enough details, they’ll spend time estimating the project. If their schedule is already tight, this can last long and cause frustration. As the company leader, you should be clear about your priorities to avoid long wait times and ensure you’re only paying for the most relevant work at any given time.

Pro Tip: When drafting the SLA, request that engineering estimates come with explanations. We at Vitamin do this, and it makes us much more reliable in our promises.

How Vitamin Maintains Internal & External Accountability

At Vitamin Software, we have check-ins to stay on top of progress, address challenges quickly, and keep everyone aligned with our objectives. We also prioritize open communication, with weekly sync meetings and leadership reports creating an environment where everybody knows what’s up.

Externally, we maintain accountability through transparent processes and updates. We believe in keeping our clients informed at every stage of a project, from progress reports to changes that might affect timelines or outcomes. Delivering on our promises is a cornerstone of our approach, and we commit to completing projects on time, within budget. Our documents — including the Sanity Check workflow, SoW draft and the executive reports template — support this approach.

Key Takeaways on Choosing Software Development Partners

Ensuring your healthcare software vendor is accountable is vital to the success of your project. From security to deadlines, a reliable partner will reduce risks and contribute to the success of your company.

Follow the steps outlined here, including research, client referrals, and process evaluations, to confidently pick a partner who meets your standards. Combine accountability with vendor risk management strategies, like clear communication, performance tracking, and defined contracts, to protect yourself from potential pitfalls.

Remember, the right software development partner delivers on promises and works with you to achieve your business goals. We at Vitamin Software consider reliability a top priority — contact us to learn about our approach.

Vitamin Software

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