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.
Health tech, also spelled as 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 health tech 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 health tech startups focusing on healthcare IT 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 is an umbrella term that includes 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 development 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:
1.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.
2. On-demand medicines
Developing healthcare mobile apps is a rising trend in HealthTech development. Many startups have launched apps that deliver medicines to users at their doorstep based on their prescriptions and details.
3. Remote Patient monitoring (RPM)
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.
4. 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.
5. AI-powered analytics
Decision-making is crucial in treating medical conditions, from prognosis to surgical procedures.
Health tech companies are incorporating AI in healthcare to help medical professionals make accurate decisions.
6. Behavioral health tech
Behavioral health tech creates products for patients with behavioral disorders or problems, such as substance abuse, PTSD, and mental instability. It is closely related with mental health tech, but it is a broader field with more applications in real life.
7. Consumer health tech
Consumer health tech companies develop wearables and IoT devices like fitness trackers, vital signal monitors, and sensors to promote preventive health and give patients continuous data on their health.
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 things health tech companies should know before launching a healthcare product
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 that health tech companies and founders must know.
After extensive research, we have gathered these four major factors that make a HealthTech product successful.
- Medical credibility
- Business model
- Ease of use
- Marketing
1. 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-have for health tech companies to establish trust with the patients.
Medical credibility in health tech product design makes the patient feel safe that the product is:
- Secure
- Regulated
- Accurate
- Functional
- Reliable
Unfortunately, many HealthTech startups 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. Top health tech companies in America get approval for their products from reputed healthcare institutions and colleges.
2. Business Model
A successful business model for healthcare technology solutions consists of five elements.
- Revenue potential
- Growth potential
- Problem solving
- Competitive advantage
- Sustainability
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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. It is a classic pricing and revenue strategy where a company sells a primary product at low cost, and then makes its profits from ongoing sales of complementary consumables.
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.
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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.
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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:
- It improves patient health outcomes
- It reduces healthcare costs
- It improves the whole experience for both the patients and caregivers
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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.
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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.
3. 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 determine whether users will continue engaging. Hence, you must ensure simplicity in your health tech product design. Your product should be simple, easy to understand, and deliver 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 HealthTech content like FAQs, user manuals, and training materials would make the onboarding process smoother.
4. 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.
10 effective health tech marketing strategies
We recommend using these 10 proven marketing strategies for health tech product launch if you want your healthcare technology company to succeed.
- Use clinical data: Publish clinical data, case studies, and patient outcomes to showcase effectiveness of your health tech product.
- Opinion leaders: Engage influencers and opinion leaders in healthcare such as doctors or health coconscious celebrities through collaborations or webinars to use their authority to boost your credibility.
- Digital platforms: Use HealthTech software development to integrate your technology with telehealth platforms and develop companion apps to expand reach and enhance user experience.
- Join events: Showcase your product at industry events and workshops to build visibility, gain feedback, and connect with key stakeholders and investors.
- Content marketing: Start a HealthTech blog and develop educational, SEO-optimized content to drive organic traffic, generate leads, and position yourself as a trusted thought leader in healthcare.
- Online presence: Partner with a HealthTech marketing agency to build a professional website and engage authentically on social media to establish credibility and strengthen your health tech startup’s online presence.
- Offer trials: People won’t buy until they see it for themselves. Therefore, offer free trials and virtual demos to let users experience your product firsthand, build trust, and increase adoption in a convenient way.
- Testimonials: Use patient testimonials and advocacy groups to showcase real-world benefits, build credibility, and drive adoption of your healthcare product.
- Advertisement: Health tech ads should convey care, empathy, and compassion. Go beyond your products features and reassure audiences through innovative advertisement.
- Build referrals: Reach out to doctors with specific marketing and rapport building to build trust and encourage them to refer patients to use your product.
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].