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As medical technology is evolving, medical institutes are ensuring that the patient’s confidentiality and privacy should be the most important thing. The Health Insurance Portability and Accountability Act (HIPAA) is establishing strict guidelines for managing Protected Health Information (PHI). Therefore, HIPAA compliance is one of the major focus points of healthcare software development. To keep their business safe and reduce the chance of putting patients’ personal info at risk, health tech companies, healthcare providers, and insurance companies want to use software that follows HIPAA rules. 

The terrain of the healthcare industry is becoming more complicated due to new technologies like EHR, AI, and telemedicine. Developers negotiating the complexities of HIPAA compliant software development may find comprehensive direction in the blog. Today, we will look into the market size, benefits, key features, cost, and tech stack used to develop HIPAA compliant software. Custom software development companies also have to be knowledgeable of these rules if they are to provide compliant and safe solutions.

Market Stats for HIPAA Compliant Software Development

Particularly in the healthcare technology industry, HIPAA compliant software development market is expected to keep expanding fast as of 2024. Rising worries about data privacy and the fast spread of telemedicine, healthcare software, and electronic health records (EHRs) are driving the growing need for safe digital solutions.

  • In 2024, the worldwide healthcare software industry is expected to be worth around $45.2 billion.
  • Driven by rising use of digital health technology, AI integration, and regulatory challenges like HIPAA compliance, it is predicted to rise at a CAGR of 15–17% from 2024 to 2030.
  • Composing the larger healthcare IT industry, the HIPAA-compliant software development sector is expected to be valued at around $5.6 billion in 2024.
  • Driven by rising healthcare data breaches, the use of electronic health records (EHRs), and increased telemedicine acceptance, this niche area is expected to develop at a CAGR of 18–20% through 2030.

Importance of HIPAA Compliance for HIPAA Compliant Software Development

Your HIPAA compliant CRM software should be HIPAA-compliant for the following reasons:

  • Ignorance of HIPAA-compliant policies might lead to severe fines and destruction of brand image.
  • HIPAA can stop illegal access, use, or disclosure as it lays out rules for managing and protecting PHI.
  • Following HIPAA rules will show patients that you value their privacy and assist to foster trust with them.
  • Certain doctors and payers may only deal with HIPAA compliant software developers. Following rules could provide more chances for income and widen your possible clientele.
  • A HIPAA compliant billing software may help you avoid hefty fines, enhance patient confidence, and widen your possible clientele. Your program should follow HIPAA compliance criteria. 

Read More: EHR Software Development: A Complete Guide

Essential HIPAA Rules for HIPAA Compliant Software Development

Essential HIPAA Rules
  1. HIPAA Privacy Rule

Patients are given the power to determine who may access and edit their medical data, according to HIPAA privacy standards. Strict standards for releasing PHI are mandated by it for HIPAA-certified institutions. A notice of privacy practices explaining the collection, storage, use and correction of personally identifiable information is one example of what HIPAA compliant CRM software is required to provide its patients.

  1. HIPAA Security Rule

A strong foundation for the protection of electronic PHI is set up by the HIPAA Security Rule. This rule applies to all HIPAA compliant scheduling software. Physical, technological, and administrative protections are all part of the security rule’s complete framework for protecting the privacy, authenticity, and accessibility of electronic PHI.

  1. HIPAA Enforcement Rule

By allowing regulators to investigate breaches and levy fines for infractions, the Enforcement Rule ensures compliance and holds companies responsible. The OCR may launch an investigation and levy a punishment against a HIPAA compliant software development that does not comply with HIPAA regulations if a data breach happens due to inadequate record security.

  1. Breach Notification Rule

The Breach Notification Rule requires that impacted patients, authorities, and business partners be notified of breaches as soon as possible. Notifying impacted patients and the OCR of the breach and the actions being taken to limit its impact is a HIPAA compliant software development provider’s duty upon discovery of a breach.

  1. Business Associate Agreement

The regulations outlined by HIPAA include Business Associate Agreements (BAAs). They state that every business partner who deals with PHI on behalf of a covered entity, including a healthcare practitioner, health plan, or healthcare clearinghouse, must have a BAA in place.

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Must-Have Features of HIPAA Compliant Software Development

An overview of data privacy and security is provided by the five primary HIPAA regulations mentioned above. On the other hand, a perfect HIPAA compliant billing software checklist is essential for software development consulting services providers.

Features of HIPAA Compliant Software Development

1. Access Control

Developing software that complies with HIPAA regulations requires more than simply storing data; it also requires establishing permitted access controls. That aids in ensuring that only authorized persons are able to access and use protected health information. 

Such procedures are essential whenever mHealth software keeps information shared between users, such as between doctors and patients. The following are components of HIPAA-compliant software development:

  • Strong user authentication
  • Monitoring access
  • Data access
  • Advance-level encryption
  • Automatic logout
  • Unique username identification

2. Data Disposal

Adequate disposal of protected health information is not required under HIPAA. When it comes to electronic PHI, however, the HIPAA compliant CRM software should be able to wipe or delete data entirely. Physically erasing data or the device in any form, including backups, should also be possible. Still, you should remove all of these backups and keep in mind all of the preserved data.

3. User Authentication

The HIPAA compliant software development that complies with HIPAA regulations must prioritize the implementation of robust user authentication. More and more research suggests that passwords are insufficient and that two-factor authentication (2FA) systems that rely on one-time passwords sent via SMS can be vulnerable to hacking. However, HIPAA needs to specify which authentication methods are to be used.

4. Protected From Internal or External Breaches

There is still room for human errors in security rules and systems; vulnerability to cyberattacks is a real possibility in almost every situation. Any number of factors, including disgruntled workers, forgotten passwords, or phishing attempts, might lead to a data breach. 

That is why you should safeguard your HIPAA compliant billing software and set up an effective alert system to detect and prevent any problems. As part of developing software that complies with HIPAA regulations, you should check that your software has these features:

  • Advanced-level password security
  • Automatic timeout/logout
  • Intrusion detection
  • Two-factor authentication

5. Integrity and Audit

To ensure the integrity of systems that utilize or include protected data, HIPAA compliant software development must adhere to the standards, which include the adoption of administrative and technological protections. To maintain honesty and transparency throughout audits, remember to:

  • System integrity
  • Push notifications
  • Data protection
  • Digital verification and signature
  • Blockchain technology for healthcare software
  • Data transmission security
  • Robust authentication 

Also Read: 20+ Top Software Testing Services Companies for QA Outsource

Cost of HIPAA Compliant Software Development and Factors Affecting it

It takes more than code and a pretty user interface to build a platform that complies with HIPAA regulations. Compliance, infrastructure, and customization all contribute to the total cost. However, we will analyze the main elements that will impact the HIPAA compliant software development cost.

1. Security and Encryption

Just so we’re clear, hackers aren’t going away. One of their primary goals is to acquire access to medical records. Because of this, you should not cut corners when it comes to security. A platform must include encryption, two-factor authentication, and secure APIs in order to comply with HIPAA. 

The scale of your platform and the amount of protection you need determine the cost of implementing high-level security measures, which may range from $50,000 to $200,000. Additionally, your yearly expenses will increase due to the need for continuous security upgrades and monitoring.

2. Compliance Certification and Auditing

How much is tranquility worth? The cost may range from $20,000 to $100,000 to ensure compliance with HIPAA regulations. Make sure your platform complies with all regulations by working with HIPAA auditing organizations such as Compliancy Group or A-LIGN. 

Neither is this a one-off transaction. To stay in compliance, you should audit your platform on a regular basis. The only difference is that instead of paying for insurance, you’re paying to avoid penalties of a million dollars.

3. Development and Customization

Are you starting from scratch with the platform’s construction, or are you adapting an existing solution? Despite its adaptability, custom-built systems may be somewhat expensive. So, you decide to use a ready-made product. Healthcare data management technologies that are HIPAA compliant are currently available from companies like Cerner and Epic. 

So, how much are these? A range of $50,000 to $150,000, with the exact price dependent on the intricacy and quantity of users. However, personalization is not enabled. Their structure will ensnare you.

4. Infrastructure Costs

Although cloud-based solutions may have lower initial costs, they still incur ongoing expenses. The pricing of HIPAA-compliant services offered by Google Cloud, Amazon Web Services (AWS), and Microsoft Azure varies depending on your use and requirements. 

What then? Depending on your requirements, cloud-based choices usually cost between $10,000 and $50,000 per year. However, purchasing and maintaining an on-premises system might easily cost you more than $100,000. 

Steps to Develop HIPAA Compliant Scheduling Software

There are a number of steps involved in ensuring a project complies with HIPAA regulations. Learn how Riseapps facilitated the quick deployment of HIPAA-compliant healthcare software solutions for a wide range of healthcare companies by following their checklist of best practices and technological security measures. 

1. Requirement Gathering and Designing of HIPAA Compliant Scheduling Software

Accomplishing software HIPAA compliance begins with fully recording and comprehending all electronic PHI regulations. Among these tasks is the collection of user needs pertaining to data management and privacy, the identification of particular HIPAA laws, the execution of thorough risk assessments to detect vulnerabilities, and the construction of strong security measures.

2. Development and Testing of HIPAA Compliant CRM Software

The prior stage’s defined data privacy and security requirements are now the center of attention throughout the development and testing phase of the HIPAA-compliant software project. In order to assess security features and guarantee they satisfy HIPAA requirements, safe coding methods, strong authentication and access restrictions, appropriate encryption algorithms, and thorough code reviews are all part of this process. 

3. Implementation and Deployment of HIPAA Compliant Billing Software

The software deployment may seem to be the last stage, but there are really quite a few things that must be done beforehand. It is critical to do a final HIPAA compliance check to ensure that the configuration of encryption and access restrictions is right. These comprehensive software testing services are necessary before the program can be released. Check out the to-do list for what needs doing right now.

4. Maintenance and Auditing of HIPAA Compliant Software Development

Continuous software monitoring to handle new risks is an important part of maintaining HIPAA compliance. Healthcare businesses and their business partners may stay safe and in compliance with HIPAA with this comprehensive strategy that takes into account the ever-changing digital world. While doing so, make use of these tactics:

  • Online training
  • Security patch management
  • Policy revisions
  • Backup and recovery
  • Vendor compliance monitoring
  • Incident response planning
  • Compliance checks
  • Integration of new features
  • Security audits
  • Regular monitoring
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Summing Up the HIPAA Compliant Software Development

Octal has helped tons of clients create and improve GDPR compliance solutions in the last two decades. We have everything we need to turn your HIPAA compliant CRM software plans into reality. Our health tech experts are always keeping an eye on HIPAA’s rules to make sure that the software they’re making meets all of the other rules that apply.

We can do all the work ourselves, or we can do staff addition for your in-house team, giving you access to experts in the field. Learn more about our experience by looking at our HIPAA compliant software development services. Get in touch with us to talk about your product needs!

Frequently Asked Questions for HIPAA Compliant Software Development

What is HIPAA compliance in software development?

HIPAA compliance guarantees that programs managing healthcare data follow rigorous privacy and security guidelines. It entails putting policies in place to preserve patient data and making sure software developers follow HIPAA guidelines on data encryption, access control, audit tracking, and breach alerting.

Why is HIPAA compliance important for healthcare software?

Protection of private patient information from illegal access or breaches depends on HIPAA compliance. Ignoring rules could lead to heavy fines, legal action, and user confidence lost. Compliance guarantees that medical companies preserve regulatory criteria and protect PHI.

What are the key technical requirements for HIPAA-compliant software?

Key technological needs include data encryption (both in transit and at rest), safe user authentication, frequent audit trails, access restrictions, and strong backup solutions. Furthermore, developing creative software ideas with security and privacy top priority will help to produce more compliant and successful healthcare solutions.

How does HIPAA impact the software development lifecycle?

From design to deployment and maintenance, HIPAA compliance has to be included all through the software development lifeline. To guarantee adherence to HIPAA criteria at all levels, developers have to constantly evaluate risks, apply security policies, test, and maintain records of compliance activities.

Can cloud-based software be HIPAA compliant?

Indeed, HIPAA compliance is possible with cloud-based software if the cloud provider satisfies the required security criteria. This covers guarantees of data isolation, encryption, and safe access limits. To verify their dedication to HIPAA criteria, cloud providers have to sign a BAA.

THE AUTHOR
Managing Director
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Arun G Goyal is a tech enthusiast and experienced writer. He's known for his insightful blog posts, where he shares his expertise gained from years in the tech industry. Arun shares his knowledge and insights through engaging blog posts, making him a respected figure in the field.

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