The relationship between healthcare and technology goes a long way back. In fact, healthcare and medicine are areas where technological advancements have made the most visible progress in improving quality of life.
HealthTech is the modern term for this old intersection of technology and health. According to the World Economic Forum, the global health tech market size is expected to reach $504 billion in 2025.
As a result, more and more companies are developing and investing in healthcare technology solutions. There are over 350,000 health apps available on the App Store and Google Play.
However, it takes a great deal of effort, planning, and strategic thinking to create a truly impactful product.
Hundreds of startups focusing on healthcare solutions are launched every year. So, how will your product stand out from the competition?
Keep on reading if you want to know the answer as we will discuss what it takes to turn a great idea into a successful health tech product.
What is HealthTech?
Health tech, or healthcare technology, is any IT tool or software that is designed to improve healthcare systems, such as:
- Hospital administration
- Patient care technology
- Medicine and drug discovery
- Public health management
- Geriatric and elderly care
- Robotics in healthcare
HealthTech focuses on improving existing medical procedures, making new breakthroughs, and devising new treatments. Moreover, advanced healthcare technology solutions enhance healthcare business processes as well.
While the term HealthTech was coined in the early 2010s, the idea behind it to create the healthcare of the future is much older.
Major domains of HealthTech
HealthTech is an emerging and vast field with several offerings under its belt.
Here is a look at some of the healthcare technology solutions that are commonly offered:
-
Telemedicine
Telemedicine solutions provide remote healthcare services through electronic communication channels. Patients and doctors can communicate online for treatment, diagnosis, and consultation of health-related issues.
-
On-demand medicines
It’s a rising of mobile application development trends. Many startups have launched apps that deliver medicines to users at their doorstep based on their prescriptions and details.
-
Patient monitoring
Certain conditions such as Alzheimer’s disease and dementia require continuous monitoring of patients. Such patient monitoring devices are IoT connected wearable gadgets, which are easy to use and wear. They examine the patients at every moment, collecting data on their vital elements and analyzing their behavior.
This provides caregivers with real-time information. If the device detects any anomaly, it will alert the doctors promptly.
-
Scheduling systems
Hospitals and clinics are using some healthcare technology solutions to better manage their appointments.
These software help users book their appointments according to their preferred slots. Additionally, they keep both healthcare providers and users alerted and updated regarding their appointments.
-
AI-powered analytics
Decision-making is crucial in treating medical conditions, from prognosis to surgical procedures.
HealthTech companies are incorporating AI in healthcare to help medical professionals make accurate decisions.
Are HealthTech and MedTech the same?
The short answer is no. Many people use the terms HealthTech and MedTech interchangeably, but they are not exactly the same.
HealthTech is a broader field that covers all healthcare technology solutions to improve healthcare. On the other hand, MedTech is a more specialized field that concerns equipment and medical devices for treating and diagnosing diseases.
The former’s primary focus is the patient’s health, while the latter empowers doctors and specialists to improve their procedures.
Four Success Factors of Healthcare Technology Solutions
The basic principles that make a product succeed in the market are common across industries. However, some specific factors in Health tech are particularly important in the healthcare sector.
After extensive research, we have gathered these four major factors that make a HealthTech product successful.
- Medical credibility
- Business model
- Ease of use
- Marketing
-
Medical Credibility
Healthcare is a critical field. You’re entrusted with people’s lives, and there is little to no room for error. Therefore, medical credibility is a must to establish trust with the patients. Medical credibility is an environment that makes the patient feel safe that the product is:
- Secure
- Regulated
- Accurate
- Functional
- Reliable
Unfortunately, 90% of HealthTech apps overlook this foundational aspect, resulting in their failure. Without medical credibility, people will hesitate to use your product.
Moreover, your product also has to win approval from doctors. Since they are medical professionals, they want evidence-based results and scientific validation to endorse healthcare technology solutions and recommend them to their patients.
To establish medical credibility in HealthTech, take the following actions:
- Involve medical experts from the onset and take their feedback from ideation to the product launch.
- Make sure that scientifically accurate evidence backs up your every claim and feature.
- Show clinical results to build a reputation for your healthcare solution.
Remember that credibility will get your both patient trust and financial value.
-
Business Model
A successful business model for healthcare technology solutions consists of five elements.
- Revenue potential
- Growth potential
- Problem solving
- Competitive advantage
- Sustainability
1.Revenue Potential
Businesses run for profit. Even those working in altruistic industries like healthcare also have to generate revenue.
Therefore, the best way to keep healthcare solutions financially afloat is through the razor and blades business model.
In this way, you can create a reliable ongoing revenue stream. For example, if your product is a patient monitoring device, instead of selling it at a high price once, sell it at a low cost but with a monthly subscription fee to access features.
This model is ideal for healthcare technology solutions because healthcare requires ongoing diagnostics and continuous treatments of patients.
You will generate sustainable profits over time, which is good for the business and to attract investors.
2. Growth Potential
Healthcare startups usually require significant upfront investments. That is why healthcare technology companies must scale quickly to show results.
You need to ensure the following to make healthcare solutions scalable:
- Expanding operations in different locations.
- Introducing new services like custom healthcare solutions in your product.
Investors are dissuaded from investing in a product if they feel it lacks growth potential, regardless of how good of an idea it is.
3. Problem Solving
There must be a solid innovation behind healthcare technology solutions that solve a real-world problem.
Why would people use your product if traditional healthcare does the same work? So, your product must present a forward-thinking alternative to what is already available. For example, if a product is using AI in healthcare, it has a higher chance of success because AI and machine learning solutions are the latest innovations that are changing entire industries.
Furthermore, your model must have real-world utility and prove that it works in practice, such as:
- Proving the product is reimbursable.
- Working closely with hospitals, providers, or pharmaceutical companies.
- Providing recurring health services.
4. Competitive Advantage
HealthTech business models that offer a competitive advantage are more likely to succeed. Healthcare is still dominated by traditional service providers because they have institutional trust and recognition.
Your business model is part of your value proposition to differentiate your product from competitors in the industry.
5. Sustainability
Last but not least, the ethical dimension of the business model is as important as its financial and competitive dimensions.
Healthcare technology solutions should be grounded in ethics, patient-centricity, and aim to create a long-term societal value. This is also good for business because investors are attracted to projects that contribute to the greater good while generating revenue.
Ease of use
The diffusion of innovation theory is a foundational concept in marketing and technology. It categorizes the complexity of an innovation as a key factor affecting its adoption.
How easy a product is to use leaves a lasting impression, and the first impression is the last impression.
The first-time user experience of healthcare technology solutions is crucial to determining whether users will continue engaging. Hence, you must ensure that your product is simple, easy to understand, and delivers results quickly.
For this purpose, you should be crystal clear about these questions:
- Who are your users?
- What problem is the product supposed to solve?
- What actions do users need to take to experience value?
Additionally, supporting materials like FAQs, user manuals, and training materials would make the onboarding process smoother.
-
Marketing
Effective marketing for healthcare technology solutions includes marketing and sales strategies working in tandem. First, understand your target audience and whether they have access to and ability to use your technology.
For this purpose, you can develop a hypothetical buyer persona. For example, ask the following questions about what your ideal customer looks like:
- What are their demographics?
- What are their motivations for using this product?
- What are their pain points?
- What are their budget constraints?
These are not just theoretical assumptions; they will help you align your sales and marketing efforts with what really matters to the audience.
Additionally, maintain message consistency across all touchpoints and teams. Even as your product gains traction and grows, you should incorporate user feedback into the marketing processes to refine your strategy according to changes over time.
Conclusion
HealthTech is an exciting industry that will play a vital role in the future of healthcare solutions. However, many companies have yet to figure out how to establish themselves successfully in this field.
The success of healthcare technology solutions isn’t just tied to a great idea. It needs credibility, a well-crafted business model, and effective marketing to really make an impact.
Xavor is a leading technology company in HealthTech solutions. We have developed advanced healthcare technology solutions, including AI-powered robotics for elderly care for clients in the U.S. and beyond.
Ready to bring your HealthTech idea to life? Reach out to our team at [email protected].
#HealthTech #Product #Success
