MedTech Connectivity: Buy vs. Build

For many companies, the initial appeal of building their own connectivity solution lies in the desire for full ownership and control, offering flexibility and independence from third-party vendors. However, in today’s technology landscape, owning every component is no longer essential for success. MedTech companies regularly use third-party tools, like Microsoft Azure or AWS for cloud hosting, because these platforms offer reliable, scalable solutions. The benefits of using proven technologies far outweigh the effort and cost of developing and maintaining them in-house.

The same applies to cloud connectivity in MedTech. While full control may seem appealing, it often adds unnecessary complexity and diverts resources from innovation. By integrating a vetted platform, companies can focus on their core product while leveraging a proven solution that meets regulatory standards.

Some companies may worry about becoming too reliant on a vendor, especially when the vendor is smaller or located in a different region. Concerns about control, continuity, or long-term viability are understandable. But these risks can often be mitigated based on the specific concern. For instance, code escrow agreements can safeguard continuity, while careful vetting and a track record of reliability address stability concerns. Vendor reliance is common in interconnected software environments, and selecting a vetted platform with built-in regulatory support, continuous updates, and proven performance often provides a level of long-term security that would be difficult to replicate in-house.

Some companies worry that a pre-built platform might limit customization options, making it challenging to meet unique needs. However, a well-designed platform, especially one built specifically for healthcare, balances compliance and security with flexibility. Such platforms support essential customizations across user interface, data integration, workflow, and device-specific requirements, ensuring that the platform can meet the specialized requirements of healthcare environments.

Building a custom solution may initially appear cost-effective, as companies assume that eliminating vendor fees will lead to savings over the long run. However, this assumption simply overlooks the hidden costs of ongoing maintenance, compliance updates, and the specialized resources required to keep the system up to date. Over time, these expenses will add up and exceed the expected savings, so it's crucial to evaluate the full spectrum of costs (including long-term operational and compliance needs) when making decisions about building versus buying.

Developing a custom connectivity solution is not only resource-intensive but also costly, often requiring substantial financial and human investment over several years. MedTech companies must ensure that the solution complies with strict regulations (such as FDA, HIPAA, and ISO standards), which demands highly specialized expertise. Building the necessary infrastructure is only the beginning - ongoing compliance with evolving healthcare regulations is also required, adding further to both the time and expense involved.

After the initial development, maintaining and updating a custom system introduces an ongoing operational burden that far exceeds initial development costs. Each new feature or regulatory update may require re-certification, security patches, and compliance checks, adding to the strain on resources. This continuous upkeep demands specialized expertise to keep up with regulatory changes, cybersecurity threats, and technical challenges, resulting in mounting expenses. By comparison, a vetted platform significantly reduces this operational burden, as updates, security enhancements, and compliance adaptations are managed by the platform provider. This approach frees internal resources and decreases the long-term costs associated with connectivity, allowing companies to prioritize growth and development rather than the complexities of connectivity management.

Building a secure, compliant connectivity solution requires highly specialized knowledge - skills that are in high demand. Hiring and retaining these experts can be both difficult and costly, and assembling an in-house team capable of handling such complexity is not feasible for many companies.

Building a solution from scratch means taking on full responsibility for ensuring compliance with all relevant regulations. This adds significant risk to the project. Any regulatory failure or oversight could lead to delays, fines, or even the failure of the product to reach market. With regulations in healthcare constantly evolving, it can become a never-ending task for the company.

It’s not uncommon for companies to invest heavily in building a custom solution, only to find themselves unable to keep up for various reasons with the complexities and ongoing costs. In such cases, they may abandon the project midway and eventually switch to a plug-n-play solution, having already incurred substantial costs and wasted time.

A vetted platform, developed specifically for the healthcare space, has already undergone rigorous testing and is proven to be compliant with industry regulations. You’re adopting a solution that has been used successfully by other companies in the industry, significantly reducing the risks involved.

Plug-n-play platforms come equipped with comprehensive out-of-the-box capabilities tailored to healthcare needs. They are designed for quick adaptation to specific project requirements without requiring extensive custom development, reducing both costs and time-to-market. This approach allows companies to deploy solutions swiftly while keeping their focus on core innovation, rather than on building complex connectivity from the ground up.

With a proven platform, ongoing maintenance and support are part of the package. The provider takes care of updates, security patches, and ensuring compliance with the latest regulatory changes, so your team can focus on the core product. This eliminates the long- term maintenance burden and reduces operational costs.

In regulated industries like healthcare, each new feature or change requires careful oversight to maintain compliance. With a plug-n-play solution, companies can reference pre-verified components in their Quality Management System (QMS), streamlining the path to regulatory approval. This drastically reduces the risk of non-compliance and helps avoid delays.

Connected care platforms are built with scalability in mind, ensuring that your solution can grow with your business. Whether you’re starting with a single device or planning to build a large-scale connected ecosystem, the platform is ready to support your needs without the need for significant infrastructure changes.

Plug-n-play solutions provide a reliable backbone for connectivity and compliance while offering the adaptability MedTech companies need. Beyond customizing the user interface (UI) and user experience (UX), a true healthcare platform allows for device- specific configurations, data handling, and integration with proprietary systems. This gives MedTech companies the best of both worlds: a ready-to-use solution that can still be tailored to fit their requirements, meeting the unique needs of providers, patients, and their specific devices.

In most cases, while companies may initially lean toward building to maintain control or avoid vendor lock-in, the reality of regulated MedTech solutions suggests that buying a vetted, proven platform offers significant advantages. From minimizing development timelines and reducing long-term costs to ensuring regulatory compliance and providing ongoing support, buying simplifies the entire process, allowing companies to focus on innovation rather than on managing connectivity and regulatory complexities.

In the end, the decision ultimately depends on each company’s resources and needs, but choosing the right partner and doing proper due diligence typically provide all the control and security a company needs, while significantly reducing the risks and burdens associated with building from scratch.