How Much Does It Cost to Build a HIPAA-Compliant Healthcare App

In February 2025, Community Health Center, a nonprofit in Middletown, Connecticut, had a major data breach. It affected 1,060,936 people. Sensitive data such as names, Social Security numbers, and medical information was exposed.

Today, the nonprofit continues to face litigation. But the gravest fallout is the loss of customer trust.

In February 2024, Change Healthcare suffered a deadly data breach. Hackers stole data from over 100 million patients. Critical files were ransomed. Insurance payments were crippled for weeks.

In 2025, UnitedHealth Group, Change Healthcare’s parent company, revealed something more concerning. The data leak actually affected 190 million people! This makes it one of the biggest cyberattacks in the healthcare sector.

What Is HIPAA and Why Should You Care?

Healthcare is the favorite sector for cyberattacks. In recent years, breaches have grown massively. Their increase is visible in both number and cost.

Undoubtedly, the trend is very disturbing. But it points to the importance of obeying the HIPAA policies. Non-compliance can result in financial loss of over $60,000 per incident!

For healthcare facilities, apps compliant with HIPAA are a must. This step is not optional. It is obligatory for businesses in this sector that handle confidential health data.

The HIPAA Act

HIPAA, passed in 1996, limits the disclosure of patients’ health data without their consent. It provides a legal system to protect health data nationally. It also specifies how patient data should be treated with technological advancements.

Key Provisions of HIPAA

Privacy Rule

This rule lays down the standards to protect individually identifiable health data.

Security Rule

It sets the norms to safeguard electronic protected health data (ePHI).

Breach Notification Rule

This rule requires covered entities to notify affected people, the Secretary of Health and Human Services of a breach of unsecured PHI.

Enforcement Rule

This rule consists of provisions on compliance and investigation. It also has the terms for civil money penalties for HIPAA rule violations.

Significance of HIPAA Compliance

For Patients

HIPAA compliance is essential to protect PHI from improper access. It ensures patients that their health data is secure. Thus, it fosters trust in the patient-physician relationship. It allows patients to provide critical information to their provider without hesitation.

For Hospitals

Every medical facility has to abide by HIPAA rules. This is critical to prevent serious legal and financial outcomes. If they don’t obey the rules, they can attract hefty fines and loss of trust.

HIPAA compliance also helps simplify processes within the healthcare facility. It leads to better patient record management. Further, it also promotes privacy and security consciousness.

For Startup Owners

Non-compliance with HIPAA laws can ruin startups. This is especially true for those in early stages. Creating apps that aren’t compliant results in hefty fines. The amount can be anywhere from $100 to $25,000 for a single violation. Annually, you can end up losing $1.5 million! In some cases, you may even go to jail!

One of the most common HIPAA violations that healthcare systems face penalties for is failing to encrypt their digital devices. This occurs because they still use outdated security policies.

Does Every Health App Need to Be HIPAA-Compliant?

No. HIPAA compliance doesn’t apply to all health apps. Apps that don’t share your personal data with any entity in healthcare don’t need it. You must have come across apps for meditation or yoga. Such apps don’t need HIPAA compliance.

Should your app be HIPAA-compliant? Just answer these questions:

• Do you operate in the U.S market?
• Do you store medical data for a healthcare facility?
• Do you gather, store, manage, or share personal health information that HIPAA protects?

If the answer is yes, you need a HIPAA-compliant software.

General Cost of Building HIPAA-Compliant Healthcare Apps

One cannot guess the exact cost of a HIPAA-compliant healthcare app. This is because it depends on factors like functions, the team’s expertise, and more. This table gives a general cost estimate for various HIPAA-compliant health software.

Factors That Affect the Cost of HIPAA-Compliant Healthcare App

Do you need a HIPAA-compliant app? You must know how much it will costBelow are all the factors that impact the overall spend.

1. App Features & Complexity

The more features and the more complex their functionality, the higher the development time and cost:

a. Basic Features

The cost of basic features can usually begin from $40,000. It can go up as much as $80,000. Below are all the features included in this price.

• Secure sign-up and sign-in processes
• Patient and physician profiles
• Appointment scheduling and alerts
• Medication alerts

b. Moderately Complex Features

The cost of these features starts from $80,000. It can go up to $160,000. These include:

• Telehealth functions
• Digital prescribing module
• EHR/EMR viewing
• Secure in-app messaging
• Wearable health data consolidation
• Custom dashboards
• Secure push alerts

c. Highly Complex Features

These are advanced features. Their cost begins from $160,000. Depending on how many you integrate, the cost can go beyond $600,000. These are:

• Complete EHR/EMR bi-directional integration
• Advanced remote patient monitoring with various devices
• AI and ML integration
• Extensive reporting and data analytics
• Complex user roles and Role-based access structures
• Various third-party integrations
• Advanced payment gateway with insurance claims
• Bi or multi-language support

2. Team Acquisition Costs

The team you hire to create the app also impacts the cost. The expenses mainly relate to your tech stack, timeline, and team’s location. Below is a region-wise breakdown of the costs. We have also included the expenses involved in various development phases.

3. HIPAA-Compliant Privacy and Security Features

Privacy and security features lie at the core of such apps. Below are all the essential ones and their costs.

General Budget to Consider for Building a HIPAA-Compliant App

It’s not possible to give a precise budget estimate. However, below we have provided the amount that you should roughly keep aside for different phases of app development. This will help you gain a good idea of the budget.

Product Complexity

Simple HIPAA-compliant apps may cost around $12,000. If you implement advanced features, set aside at least $150,000.

Development Team

Freelancers may charge up to $20,000. Specialized healthcare app development firms will charge up to $200,000.

Security Measures

Strong security measures like encryption, authentication, and security audits cost anywhere between $12,000 – $60,000.

Compliance Consulting

Engaging experts for risk assessments and ensuring compliance with HIPAA rules may demand an investment of $5,000 to $30,000.

Testing and Quality Assurance

For testing and QA, a budget of $12,000 – $60,000 is ideal. The exact amount depends on your app’s complexity.

Maintenance and Support

This takes up about 20% of the initial development expense.

Tips to Reduce the Cost of HIPAA-Compliant Healthcare App

It’s critical to develop an app with the latest features that offers value to your users. At the same time, HIPAA compliance can prove to be expensive. Luckily, there are some effective ways to cut costs.

1. Focus on the Crucial Features

Do a deep research to find the most critical features. Concentrate on creating functions that align with your app goals. They must also be HIPAA-compliant. This will help with proper resource allocation. It will also ensure that your money is spent on the right things.

2. Pick the Right HIPAA-Compliant Tech Stack

This is a major cost driver. Not only that, but it also affects the success of your app. Focus on the things below to optimize costs and your app’s value.

Begin With HIPAA-Ready Frameworks

Choose systems that support built-in HIPAA compliance. React Native and Flutter are good options.

Use the Cloud Healthcare API

Google’s Cloud Healthcare API helps you manage and store encrypted health data safely. It facilitates secure data sharing and is built for healthcare apps.

Choose HIPAA-Compliant External Services

Every third-party service you use should abide by HIPAA rules. Some examples of such services are those for payment, chat features, or analytics. Ensure they sign a Business Associate Agreement (BAA).

Check for Platform Compatibility

Your app development platform should be compatible with your tech stack. It should meet all regulatory needs.

Prioritize Privacy

Whatever tools or services you choose must support data encryption, secure logins, and other protections.

Plan for Quick Updates

Your tech stack should enable fast patches and upgrades. It will help you to keep up with the latest HIPAA rules and tech changes.

Test for Scalability

Your tech stack should be able to handle more users and data without compromising any compliance rules.

3. Implement DevOps

DevOps helps you optimize your app’s development budget. This approach allows teams to better interact with the end user and among themselves.

Here, the development team and those who in charge of the app’s operation share duties. It avoids shifting responsibilities from one team to another. DevOps involves efficient merging of areas of responsibility. Continuous integration and continuous delivery are its chief tenets.

Every app module is integrated into the app gradually. It helps you assess its efficacy. You also get feedback for it. This, in turn, helps you avoid scenarios where the final app doesn’t meet the end goals and your business needs.

4. Focus on Usability Over Visual Impact

Good design is always a part of great health apps. But what’s more essential for the end user is usability. You cannot separate design from usability. Design is critical to create a good first impression.

But your app’s design should be even. It should stick to the best sector practices. It must be HIPAA-secure, too. But it shouldn’t impede the app’s usage.

To make this low-cost, use ready-made designs. This will slash the time spent ideating design elements.

Final Takeaways on Building a HIPAA-Compliant App

Strict laws control the healthcare arena. If you store or share personal data, a HIPAA-secure app is crucial. Ideally, it’s best to keep aside a budget of at least $50,000. However, the amount can go up depending on your app’s complexity.

Thoughtful planning and partnering with a reliable software development agency can help reduce costs drastically. Hopefully, this post has given you good insight into the financial costs linked with developing a HIPAA-compliant app. Use it as a guide to strategize the creation of a secure app. You’ll create a final piece that meets the industry standards.

Frequently Asked Questions

1. 1. How much does HIPAA hosting cost?

Entry-level managed HIPAA hosting costs up to $350 per month. Advanced managed HIPAA hosting has a higher price. The cost begins from $600 per month.

2. 2. How long does it take to build a HIPAA-compliant app?

The time mainly depends on the app’s complexity. A simple platform takes no more than 5 months. An advanced app, on the other hand, can take well over a year.

3. 3. Can I outsource a healthcare app with HIPAA?

Yes, you can outsource healthcare app development with HIPAA. Ensure to choose a reliable and experienced provider. For safety reasons, sign an NDA. You’ll not bear the burden if the contractor engages in unlawful activity.

4. 4. How much does HIPAA Compliance Certification cost?

HIPAA certification costs vary for small and large companies. Generally, the price begins from $10000. It can be as high as $15000. It mainly depends on your company’s needs and complexity.