Custom Healthcare Software vs. PMS: Costs, Time to Implement, and User Experience

When private practices and healthcare organizations are faced with the choice of software for their patient care workflows, they have two options: use off-the-shelf practice management software, or turn to custom healthcare software development companies.

Since you are reading this article, you might consider the second option. Even if the allure of custom medical software development may seem appealing, it is essential to weigh the benefits and drawbacks carefully.

Today we will compare both options and find out how much time and money it takes for a clinic to implement custom software and a ready-made solution.

Number of the day: the global healthcare IT market is expected to reach $974.5 billion by the end of 2027.

The Development Process and Costs of Custom Healthcare Solutions

Development companies promise to make a tailor-made solution that addresses the unique needs of a medical organisation. The attractiveness of such a solution is conveyed through the idea that software tailored to the needs of a clinic offers seamless integration with existing workflows and a set of modules without unnecessary overpayments. However, the reality of developing custom software is far more complex than it initially appears.

Developing software from scratch takes several stages, each of which requires time and resources.

Requirement data analysis

This phase involves gathering detailed requirements from stakeholders, understanding their needs, and documenting specifications. This step can take weeks to months, depending on the complexity of the requirements.

Developers’ task is to analyse the existing processes of the healthcare system, identifying its strengths and weaknesses, as well as the needs of the system users, which may include clinicians, medical staff, administrative staff, and patients. At this stage, it is important to analyse the current situation, including the problems and shortcomings of the existing patient information system (if any).

Once the data collection for the PMS development is completed, the technical specification for the development team is formed on the basis of the collected requirements. The terms of reference include a detailed description of the system functionality, interface requirements, integration with other systems and equipment, security, and healthcare data confidentiality requirements.

Design and prototyping

Designers create wireframes and prototypes to visualise the end product. This phase includes user feedback loops and iterations, that can add more time to the process.

Developers design the system interfaces, paying special attention to the convenience for end users. They create prototypes of screens, menu organisation, forms, and reports. UI/UX design is always based on the specifics of medical staff work.

Development

The actual coding of the software begins. This phase is typically the longest, as developers write, test, and debug the code. At this stage, they develop the database structure that will be used to store all the information in the system. Alongside with software product development, the team creates detailed PMS documentation.

Custom software development can take several months to over a year, depending on the project's scope.

Testing and quality assurance

Testing is conducted to identify and fix bugs, ensure compatibility with various systems, and verify that the software meets all requirements.

Developers perform quality assurance (QA) to ensure the software functions as intended. Some common ways developers perform QA include:

• Code reviews ensure adherence to coding standards.
• Unit testing verifies the functionality of individual units or components of the software.
• Integration testing ensures they work together seamlessly.
• Regression testing checks that existing functionalities still work as expected.
• Performance testing proves the software meets performance requirements.
• User acceptance testing (UAT) to make sure the software is user-friendly.

Deployment and training

After development and testing, the software is deployed within the organization. This phase includes training staff on how to use the new system effectively.

Project managers migrate medical data from old information systems or manual medical records to the new health information system. This includes processing and converting patient data, cleaning, and checking for correctness.

Maintenance and updates

Post-deployment, ongoing maintenance helps fix issues, update software, and add new features. This entails continuous costs and resource allocation.

Technical support of the system consists in organising a user support service available during working hours to answer questions and help solve problems arising in the process of working with the installed PMS. Regular consultations and trainings for users on new system functions are also a must.

The financial burden of custom healthcare software development services is substantial. Initial development costs can range from $10,000 to $500,000 or more, depending on the complexity and scale of the project. Additionally, ongoing maintenance and updates can cost between 15% and 20% of the initial development cost annually.

These figures do not account for the indirect costs associated with staff training, potential downtime during deployment, and the opportunity cost of diverting resources from other critical areas.

Ready-Made Practice Management Software Vs. Custom Software Solutions

In contrast to custom solutions, a ready-made hospital management system offers a cost-effective alternative. These solutions are designed by experienced developers who specialise in healthcare software and understand the intricacies of medical workflows, compliance requirements, and data security.

One of the arguments cited by managers who want to develop their own healthcare software solutions is the possibility of creating a product that meets the requirements in terms of functionality. Due to a lack of experience and understanding of the peculiarities of system development, problems arise in writing TOR for developers.

Ready medical information systems have a basic set of tools, which can be supplemented if necessary. If difficulties arise, if there is a need to implement additional tools and functions, simply contact the PMS technical support.

Let’s compare a few more parameters on which we compare off-the-shelf PMS solutions and mobile app development processes.

Extensive experience and understanding of needs

PMS developers have extensive experience in the healthcare industry. It allows them to create solutions that address common challenges faced by healthcare organisations.

For example, cloud-based PMS Medesk has been developing software for clinic automation since 2008 and operates in 35 countries. Over 16 years, the company has learnt the challenges and requirements of doctors in Europe, Asia, North, and South America and offers a set of features that streamline core processes for both solo healthcare professionals and large clinics:

• appointment scheduling
• online booking and patient portal
• interactive telemedicine
• electronic health records (EHR/EMR)
• medical CRM
• reports and health data analytics
• payments, payroll calculations, medical billing
• revenue cycle management
• treatment notes templates
• administrative task management and more.

These companies understand regulatory requirements such as HIPAA compliance in the US, GDPR in Europe, and other local regulations around the world. This expertise ensures that the solutions comply with legal requirements and users avoid non-compliance penalties.

In addition, PMS developers are constantly updating their software to incorporate new features and technological advances. This continuous improvement process allows healthcare providers to benefit from the latest innovations without additional development costs.

Cost-effectiveness and predictability

Signing up for an off-the-shelf PMS solution or mobile app is cost-effective. Unlike healthcare software development services, PMS is usually provided on a subscription basis. The subscription model allows you to spread the cost over time. On average, the cost of a PMS ranges from $10 to $1000 per month, depending on the size of the organisation and the features required. This pricing model includes maintenance, upgrades, and customer support.

Additionally, PMS implementation is much faster than custom software development. Implementation can take anywhere from a few days to a few weeks, depending on the complexity of the organisation's needs and the level of customisation of the PMS. This rapid deployment minimises disruption to day-to-day operations and allows healthcare organisations to use the software more quickly.

Quick comparison of key aspects of PMS and custom healthcare software

Cost

• Custom software: high initial development costs ($10,000 to $500,000+), ongoing maintenance (15-20% of initial cost annually), indirect costs.
• PMS: subscription-based ($10 to $1,000 per month), includes maintenance and updates.

Time to implement

• Custom software: several months to over a year.
• PMS: a few days to a few weeks.

Customisation

• Custom software: fully customisable to specific needs.
• PMS: limited customisation within the framework of the software, but designed to meet common healthcare requirements.

Compliance and updates

• Custom software: requires ongoing effort to ensure compliance and updates.
• PMS: built-in compliance and regular updates managed by the provider.

Reliability and support

• Custom software: dependence on the original developers for support and updates.
• PMS: established customer support and reliability due to extensive user base and provider experience.

Risks

• Custom software: carries the risk of project delays, budget overruns, or even failure.
• PMS: set of tested and verified features.

Try Practice Management Software Today for Free

When considering the needs of medical professionals, ready-made practice management software systems offer several significant advantages over custom medical software development services.

1. Cost-effectiveness
2. Quick implementation
3. Built-in compliance
4. Ongoing updates
5. Expert support

Yes, the idea of custom healthcare software development may seem appealing for its bespoke capabilities. But it turns out that the practicalities and costs involved often outweigh the benefits.

In practice, it turns out that corporations with million-dollar budgets, such as Kaiser Permanente (KP HealthConnect), Mass General Brigham, and many more, have a need for their own software. They can afford software development and maintenance, unlike smaller clinics.

Clinic management systems give you access to all the features and integrations you need, without imposing what you will never use. You will be able to choose the pricing plan that suits your practice, connect the modules you need and disable unnecessary ones, save budget, and reallocate it to what is important: advertising, marketing campaigns, purchasing new equipment, or upgrading professional skills for better patient outcomes.

If $10,000+ is a burden for your company, use our off-the-shelf solution. Especially when you have the opportunity to try it for free.