There are three main questions app developers should ask themselves once they come up with an idea and have a plan to move forward, according to an App Developer Magazine report.
Here are those questions for app developers to consider after solidifying an idea, finding business partners, initiating the process of bringing the product to market and investing their money.
1. What is the business plan? A business plan needs to consider execution issues, such as revenue models, the product's relationship to the competition and macro trends that address long-term business. Current macro trends in the healthcare industry highlighted by the report include the imperative to reduce operating expenses and improve care delivery efficiencies, provider consolidation and an emphasis on population health. Additionally, developers should be aware of the regulatory environment, including requirements and/or exemptions by the U.S. Food and Drug Administration, HIPAA and the FTC.
2. How will you get paid? Figuring out how one's app qualifies for health insurance reimbursement could be the biggest barrier to a successful execution, according to the report. App developers should consider how their business model will generate revenue within its respective industry. The report suggests beta testing the app with a hospital or large physician group to potentially gain a first customer, which may make insurers more likely to pay for the app, as well as allow developers to iron out any implementation issues.
Developers also need to be aware of constrictions surrounding marketing of the app, such as the Stark Law and Anti-kickback Statue, which would prevent developers from providing incentives to physicians and practices for using their app.
3. Do you have insurance? App developers and companies should get liability insurance for their products in case an app or device error leads to an adverse event. The report gives the example of an app or device predicting the occurrence of a heart attack. If the app/device did not predict a heart attack and the user died from a heart attack, the patient could sue the app developer. "The healthcare industry is very litigious with large jury verdicts in a small number of cases, but insurance coverage is essential to protect the long-term financial integrity of the business," according to the report.
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