Building a Healthcare App in the EU and the US: Difference and Similarities

The global market size for healthcare apps was estimated at USD 4.2 billion in 2021 and is expected to reach USD 5.2 billion in 2022. Currently, the number of health apps available on the Google Play store exceeds 50,000, and the demand for mobile health solutions is predicted to stay high in years to come. The reasons include the increasing demand for accessible healthcare services, the shortage of qualified in-person care, and the increasing proliferation of mobile devices enabling remote healthcare.

If you have your mind set on building a healthcare app and want to tap into the lucrative niche of healthcare app development, there are a few things you should take into account. In particular, your approaches to building a healthcare app will differ depending on your location. In this article, we will talk about the differences between building a healthcare app in the United States and in the European Union (EU).

The Cost of Building a Healthcare App

The costs of building a healthcare app have been estimated at an average of $450,000 in 2018 and are still increasing. Most of the developers charge hourly rates - the more complex is the app, the longer it will take to develop it.

The developers in the USA will charge you $100-$450 USD/hour. The estimated total pay for a software developer is $93,325 per year in the United States area, with an average salary of $87,339 per year. The average additional pay, including cash bonuses, commissions, tips, and profit sharing is $5,986 per year, as per Glassdoor reports.

In Western Europe, developer salaries start at $40,000. In countries like Belgium, France, Netherlands, Norway, Germany, Ireland, and the UK the rates will range from $150 to $400 USD/ hour.

However, the payment range is broad, and even within the same country salaries may differ significantly.

Still, both US and EU companies may outsource their healthcare app development projects to Eastern Europe and save up to 50% of the development costs. Admittedly, this outsourcing location is more convenient to EU clients, because of geographical proximity and insignificant time difference.

The Popularity of Healthcare Apps

Although the global market for healthcare apps is expanding, the popularity of digital health solutions differs depending on the region. A recent Statista.net survey reports that the Chinese and Indians were the most eager users of healthcare apps worldwide, followed by Americans who are also likely to use healthcare mobile applications. The United States, however, has the largest number of freeloaders together with Germany.

So far, the European Union has the lowest number of healthcare app usage, with only 22 to 40% of survey participants reporting to be using one.

As for the most popular healthcare app type, global leadership rightfully belongs to nutrition apps. The second most popular app type is a monitoring app for heart rate and other bodily functions, as well as sleep monitoring apps.

In Europe, however, the most popular type of healthcare app is an online platform connecting doctors and patients and enabling the latter to book appointments and access their medical records. The Polish DocPlanner app, for example, is the top healthcare app in four European countries. In Germany and France, its direct competitor, Doctolib enjoys the highest rankings.

In the United States, the most popular healthcare apps according to the GooglePlay store include MyChart, an all-encompassing healthcare platform for managing healthcare records, prescriptions, and appointments, and GoodRx, the pharmacy coupon and deal finder.

As you can see, in both regions top healthcare apps tackle the accessibility of medical services and electronic health records. In the United States, though, the high costs for prescribed medications dictate the demand for apps like GoodRx.

Regulatory Landscape for Digital Healthcare

Adherence to local laws and regulations is a major aspect that you have to take care of if you plan on building a healthcare app. We have covered the differences between the EU and the US legislation in our previous articles, but there is no way you can overestimate their importance.

In the EU, for example, the security of patients’ data is governed by the GDPR, the General Data Protection Regulation, while in the United States the HIPAA law regulates the secure handling of healthcare data.

Differences in the Healthcare Systems of the US and the European Union

It is also important to take into account the differences in the healthcare systems of the United States and the European Union.

According to OECD data, Americans spend more on healthcare services than the citizens of any other developed country. However, only 25% of them believe they receive the proper level of care. Compared to the 70% of the EU citizens feeling the same way, this is a large gap.

The core differences lie in the type of payment for healthcare services. In the EU the healthcare coverage system is universal. Healthcare services may be fully covered by the government or by private sector organizations. Some countries, for example, Germany, also offer a multi-payer model where the healthcare system is free for low-income citizens and paid for those who earn more.

In the United States, the healthcare system coverage is hybrid. This means the healthcare expenses are covered in part by the insurance, the private sector companies, and the individuals. There is also national health insurance for people over 65 called Medicare and a joint federal-state program called Medicaid, available to those who pass income tests. Each state may have its own set of rules for organizing and running Medicaid.

Most of the healthcare services in the United States are covered privately - either by individuals or the corporate sector, with the government accounting for only approximately 17%. As a result, practitioners are enabled to dictate the prices for their services, and the prices tend to stay quite high.

Similar Challenges

Despite the fact that the citizens of the EU are more satisfied with the level of healthcare services, the challenges the healthcare systems are facing in both regions are inherently similar:

Accessibility

In the EU, waiting for doctor's appointments takes notoriously long. Long waiting times are typical for free universal medical coverage systems, however, the long wait time is also an issue in the United States. The reasons lie in the shortage of medical professionals in almost every medical field.

In this regard, digital healthcare capable of tackling these issues by offering telehealth platforms, evidence-based solutions for checking symptoms, educational software for medical students, etc., may be a viable solution.

Interoperability

In the United States, healthcare data is stored in disparate databases, which may become a major issue for patients if they go to a different doctor or move to a different state. EU experiences similar issues and is already working on introducing an eHealth Digital Service Infrastructure operating across the EU member-states. The United States has no such solution so far, which leaves the doorway of opportunity open for tech players.

Security

Both the United States and the European Union have regulations for protecting patients’ data. However, it is still difficult for many healthcare providers to maintain robust security standards and implement the existing regulations. Healthcare data security still remains a broad area where healthcare providers could use a helping hand.

Final Thoughts

Because the healthcare systems of the US and the EU are inherently different, so is the demand for healthcare solutions and apps. A qualified tech partner, however, will help you build a solution that will meet the needs of a particular patient group in any particular region. Regardless of the type of solution that you want to build, look for a reliable company with proven experience in healthcare app development to help you handle the security, regulatory, and development aspects of building a healthcare app.

Have a healthcare app idea that you want to bring to life? Contact us now for a free consultation!