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what do healthtech companies do?

What do healthtech companies do?


Healthtech companies place technology at the service of healthcare. Their goal is to help medical organizations improve access, efficiency, and service quality through software development, enhancing the patients experience. These digital products can include mobile applications, websites, and other cutting-edge tools.

According to the World Health Organization (WHO), healthtech aims to create systems that address and solve health problems. These companies are based on the collection, storage, distribution, and analysis of data from healthcare users, providers and medical organizations through different platforms. They develop a wide range of digital tools, including software apps and medical devices, to support and improve healthcare systems.

It is essential for companies in the healthcare industry to be aware of, comply with, and enforce compliance with regulations related to the protection of patients' medical data. In the case of the United States, this is governed by HIPAA, and in Canada, by PIPEDA.

In this article, we will explain what healthtech is and what healthtech companies do, how it differs from a medtech company, and why hiring a specialized healthtech company can be beneficial for your business.

In this article

What is considered healthtech?

The World Health Organization (WHO), defines healthtech as "the application of organized knowledge and skills in the form of devices, medicines, vaccines, procedures, and systems developed to solve a health problem and improve quality of lives".

Healthtech companies work with a wide range of products, from free consumer health apps that monitor physical activity, heart rate, or menstrual cycles, to advanced robotic systems used by specialists.

These firms provide healthtech services to organizations directly or indirectly involved in healthcare, such as clinics, hospitals, medical offices, pharmaceutical development, research, and insurance.

They also assist suppliers to healthcare institutions by offering medical devices, materials, and various services such as cleaning, catering, and administrative support.

Healthtech covers the entire health spectrum: prevention, diagnosis, treatment, and disease management.

What is the difference between medtech and healthtech?

The primary difference between medtech and healthtech lies in their scope. Medtech focuses on developing medical devices and equipment for diagnosing, monitoring, and treating diseases and medical conditions. Healthtech, on the other hand, is broader and can include digital technologies and software solutions aimed at improving healthcare delivery, managing protected health information (PHI), and enhancing population well-being.

Despite referring to different aspects of technology applied to health, both terms are often used interchangeably. The following chart illustrates the healthtech vs medtech comparison:


Medtech (Medical Technology)

Healthtech (Health Technology)

Focuses on

Diagnosis, monitoring, and treatment.

Improving healthcare delivery, data management and security, overall well-being.

Approach

Engineering and manufacturing devices for clinical use.

Integration of digital technology in healthcare and health promotion.

Objective

Improve the accuracy, efficiency, and safety of medical procedures.

Facilitate access, efficiency, personalization of health systems, and protection of PHI.

Examples

MRI machines, ultrasound equipment, etc.

Telemedicine applications, electronic health records (EHR) management software, mobile health and wellness apps, wearable health tracking devices.

Why are healthtech companies important?

Healthtech companies are crucial for three main reasons: they make processes more efficient and secure, improve accessibility, and drive innovation in healthcare.

Firstly, they enhance efficiency and security by reducing costs, improving service quality, and adhering to the latest information protection standards, helping meet country-specific regulations like HIPAA in the US or PIPEDA in Canada.

Secondly, they improve accessibility by simplifying healthcare services and proposing tech solutions to problems identified from patient feedback.

Thirdly, top healthtech businesses are continually researching and developing new solutions to meet security demands and enhance the user experience of their digital products with cutting-edge technology.

Healthtech firms are essential strategic allies, enabling you to provide your patients with top-notch service and solutions to their needs while reducing the margin of error.

Fastest-growing healthtech companies

The best healthtech companies that have experienced the most growth in recent years are those using virtual technology, data availability, and artificial intelligence to make tasks easier.

Thousands of organizations worldwide are investing millions in research and technology to make healthcare more effective and efficient. Many have shifted towards remote care through digital healthtech applications that support people at different stages of illness. From video calls for consultations to alerts reminding you to drink water or monitoring heart rate, insulin levels, or oxygen, and notifying you when it's time to take medication.

There are increasingly more devices and tools that allow for more precise and easier collection of medical data. The healthtech industry has been working on improving data collection processes. These volumes of information are invaluable for refining diagnoses and gaining insights into disease prevention and treatment.

Additionally, artificial intelligence plays a crucial role in analyzing this data, enabling even greater precision in diagnosis and treatment. It also serves as an automation tool, greatly assisting healthcare professionals who spend hours describing phenomena, completing medical records, and other bureaucratic tasks.

If this article helped you understand why healthtech is important and what healthcare IT companies do, we invite you to explore our blog and continue learning about the healthcare industry. Please consider recommending it to your colleagues or anyone who might find it useful. Follow us on Instagram and LinkedIn to learn more about XOOR!