Choosing the Best Revenue Model for Your Healthcare App

A3Logics 28 Jun 2023


The revenue model used to monetize a mobile application can make or break its chances of success.  While a well-chosen model generates needed funds, an inappropriate choice can undermine user trust, engagement, and ultimately the healthcare app’s effectiveness. Therefore, selecting the optimal revenue stream or combination of streams for your healthcare app requires careful consideration of several important factors.


This blog post will discuss the key points healthcare app developers should evaluate when choosing a revenue model. Though no single revenue model is ideal in every case, aligning the chosen healthcare approach with your specific healthcare app’s users, objectives and value can lead to a sustainable option that generates profits while preserving – or even enhancing – the user experience and outcomes the healthcare app aims to provide.


The bottom line is that healthcare apps hold a responsibility beyond making money. They aim to improve users’ health and well-being through technology. So, the revenue model cannot come at the cost of that mission. With careful selection founded on a thorough evaluation of relevant considerations, developers can identify the optimal mix of revenue streams for their particular healthcare app to best balance profitability with purpose.  Get in touch with a top mobile app development company in USA.


What is Healthcare app?


A healthcare app, also known as a healthcare app or medical healthcare app, is a software healthcare application designed to help users manage and improve their health. Healthcare apps allow people to monitor facets of their well-being, provide relevant information and recommendations, and enable communication related to health goals. They integrate technologies like wearable devices, sensors, and connected equipment to collect data, offer insights and facilitate interactions associated with health and wellness.


Healthcare apps can be created for both consumers and medical professionals. Consumer-facing healthcare apps aim to assist individuals with lifestyle changes, nutrition tracking, fitness improvement, medication adherence, and chronic condition management. These insightful little programs collect reams of valuable data on your activity, diet, sleep and more, then use that information to show you unique ways to improve. Never has so much health information been at our fingertips, right within the devices we carry everywhere.


Healthcare apps remove the excuse of forgetting to take medication on time or not knowing how much water you drink in a day. Their alerts, trackers and reminders light a path forward through simple changes that make a big impact over time. And by aggregating information in one place, they reveal previously hidden causes of problems and solutions previously out of sight.


Yet no app can make the choice for you. You still need willpower and commitment to act on what you learn. Technology supplements, but cannot replace, old-fashioned self-discipline.


Why choosing the right revenue model is important for a healthcare app?


Money is necessary but not easy to discuss when it comes to health. And yet, choosing the right revenue model for a healthcare app is vital to ensure it can achieve its life-saving potential. Some may argue healthcare apps should be free, so that cost does not prevent anyone from accessing critical tools. But development, maintenance, and improvement do not come for free. For an app to remain helpful long-term, it needs funds to cover these costs.


Some considerations to be considered are as follows

  • The revenue model should align with the healthcare app’s purpose. A healthcare app focused on health education may rely more on donations while one aiming to improve clinical workflows may opt for licensing fees.
  • The selection should account for potential impacts on user experience and trust. Models involving advertising, in-healthcare app purchases, or data sales could threaten user trust if not implemented carefully.
  • Infrastructure requirements and healthcare app development costs must be weighed. Some options like sponsorships and licensing require less ongoing support.


Types of Healthcare App Business Models


Some of the healthcare app business models to choose from are as follows-


Freemium Model


The freemium model is a common revenue strategy for healthcare apps where basic features are free while premium features require a subscription. In this model, the free basic version aims to attract as many users as possible to build a large user base. The basic features still provide some value to gain traction.


Premium subscribers are then offered extra functionality, customization options, and enhanced features beyond the free version. These value-added services generate revenue through subscription fees. The freemium healthcare approach balances access through free features with monetization through optional premium subscriptions, healthcare appealing to both non-paying and higher-value users.


Subscription fees can range from a few dollars per month to over $100 annually depending on offered premium benefits. There may be multiple tiers at different price points. While free basic features widen the user base, some free users who could pay instead opt for the free version, undercutting revenues.


The use of this paradigm has a few drawbacks as well. To encourage users to upgrade to the premium version, the free version of the programme frequently contains limited functionality. This can have an effect on the app’s overall effectiveness and usefulness. Healthcare apps have substantial development and maintenance costs, which may be insufficiently covered by the revenue from a tiny percentage of paying premium customers.


Healthcare apps aim to balance profits with spreading benefits as widely as possible. The tradeoff is attracting users unwilling to pay for premium features that could potentially generate needed revenue.


Subscription Model


A subscription model is a popular choice for healthcare apps’ primary revenue generator. In this model, users must pay a regular cost to use all of the app’s capabilities; this money is often charged monthly or annually.


The advantages of subscriptions for app developers are numerous. First off, they offer steady and regular money that helps fund the app’s continuing maintenance and development. In contrast, one-time payments and in-app purchases can have erratic revenue.


Second, the revenue from subscriptions encourages app creators to keep improving and updating their products. If users believe they are receiving a good enough value for the price, they will only renew their subscription.


Subscriptions provide customers with ongoing access to all of an app’s features. Like in a freemium model, there are no limitations or ads. The addition of new features and improvements is also advantageous to subscribers while their subscription is active.


The target market and unique value proposition of the app must be taken into consideration when choosing the appropriate subscription pricing. Affordability is a crucial factor, especially for consumer-focused healthcare apps.


In-Healthcare App Purchases


Many healthcare apps use in-app purchases as an additional revenue stream to supplement subscriptions or advertisements. With this model, users can buy extra content, features or premium upgrades directly within the app.


For app developers, in-app purchases offer a convenient way to monetize existing users. They allow developers to offer specific add-ons that provide value to only certain segments of users. This helps target revenue opportunities more effectively.


Revenue from in-app purchases tends to be more unpredictable compared to subscriptions. However, it can provide a useful boost, especially for new apps trying to gain traction.


For users, in-app purchases give them the flexibility to only pay for specific extra features they want. They are not locked into a subscription and can choose the value that matches their specific needs.


However, in-app purchases do have some disadvantages for healthcare apps. They could potentially lead to inequitable access if important features are locked behind payments. App users may also find it inconvenient to make multiple in-app purchases over time.


To overcome these issues, healthcare apps tend to limit in-app purchases to optional features that enhance – but do not determine – the overall effectiveness of the app. Core features related to health goals are kept free.




Advertising is a straightforward and low-barrier option for app creators to monetize their free apps. Users are not required to pay for exclusive features or subscriptions.


The amount of advertising revenue usually scales well with the quantity of users. The app’s potential for advertising increases along with its popularity. The demand from advertising, however, can also cause considerable fluctuations in revenue.


By lowering financial obstacles for consumers, free healthcare apps with relevant advertising can increase accessibility. The app’s effect and reach are increased as a result.


Advertising does have drawbacks, though, particularly for healthcare apps. Ads that are excessive or irrelevant can make for a frustrating and annoying user experience. They might stop important app functionality or vital data.


From an ethical perspective, advertising runs counter to the main goal of many healthcare apps, which is to enhance user health. Apps must make sure that advertisements do not endorse harmful goods or actions.


In conclusion, while advertising can aid in increasing the number of users who have access to healthcare apps, it also has serious downsides that may detract from the app’s user experience and health objectives. To prevent undermining the goal of the app, adverts must be properly targeted, restricted, and limited when used.




For some types of healthcare apps, particularly those that seek to increase awareness, educate users, or have a significant impact on public health, sponsorships are a potentially viable income strategy. With sponsorships, businesses and organizations provide financial support for an app in exchange for publicity.


Sponsorships can offer dependable money for app developers that is independent of user activity. Businesses and organizations that support the app’s goals and mission in regards to health provide the funding. The funding will probably continue so long as the sponsoring partners still think it’s worthwhile.


Healthcare apps can leverage the resources of bigger organizations through sponsorships, including their distribution networks, user bases, and specialist expertise. This could hasten the app’s adoption and efficiency.


Sponsorships ensure that healthcare apps are free for consumers and don’t contain annoying adverts. Users can take full advantage of the app’s features and content without any restrictions due to the fact that revenue is not dependent on them.


Developers must take care to prevent sponsoring partners from unduly influencing the app’s design and content in ways that jeopardies health objectives. Only alliances in line with best practises supported by evidence should be sought after.




In exchange for license fees, a healthcare app developer who uses licensing allows other parties to use or distribute their software. For certain types of healthcare apps, especially those aimed at healthcare practitioners and organizations, licensing can be a viable alternative.


With licensing, software creators can profit from their intellectual property without having to build and maintain a sizable user base themselves. Compared to business strategies like in-app purchases or advertising, license fees are typically more reliable.


Healthcare providers, hospital systems, payers, and other participants in the industry who want the app’s functionality to enhance their offerings can license the app from the developer. These groups’ extensive networks have the potential to greatly increase the app’s influence.


Leasing a specialized healthcare app rather than building one in-house may be more cost-effective for healthcare organizations. This enables individuals to utilize an app specifically designed for their needs while concentrating on their primary talents.

But licensing also has its difficulties. Developers must make sure licensing agreements maintain the integrity of the app’s healthcare purpose and data security because they have less control over how their software is utilized.


Apps aimed at the healthcare sector, whose organizers have the financial means to pay for customized solutions, are most suited for licensing. When done right, licensing strikes a balance between the interests of app developers and licensees, allowing a healthcare app to scale up outcome improvement.




Donations may be the most acceptable income source for some healthcare apps. This is especially true for apps created for charitable objectives like raising awareness, preventing crime, checking for diseases, or helping impoverished people. User payments or advertising revenue frequently conflict with these objectives.


With donations, app creators rely on the kindness and generosity of people, groups, and foundations to finance the development and upkeep of the app. Instead of any immediate financial gain, donors are motivated by the app’s social impact and public health objectives.


Donations provide a financing source that is consistent with the principles of their nonprofit healthcare app for app creators. Donors often have little say in how the app looks or functions, freeing developers to concentrate solely on health-related goals.


Donation solicitation can be difficult, requiring time and effort for grant writing, networking, and impact evaluation. Depending on the availability and priorities of contributors, funding can sometimes be erratic.

However, when donations are effective, they can offer the long-term support that non-profit healthcare apps need to acquire a huge user base, produce significant health results, and run permanently.


By remaining free and ad-free for consumers, healthcare apps supported by donations maximize accessibility. They are not motivated by business interests that might jeopardize their goal.


The best applications for donations are those that target poor populations, issues that affect the general welfare, or apps that avoid expensive health problems. Donors may be persuaded to fund these kinds of solutions at scale by compelling impact data and stories.




Crowdfunding involves raising funds from many individuals (the “crowd”) typically through online platforms to finance a project like developing a healthcare app. Developers turn to crowdfunding when seeking initial support and funding before a healthcare app even launches. Successful crowdfunding campaigns demonstrate early healthcare appetite and interest in an idea. Revenue comes from contributions pledged by the crowd of backers who support the healthcare app concept and want to see it become a reality. Larger networks of potential backers enable higher funding goals.


Crowdfunding works best for healthcare apps with a clear social mission that inspires backers to contribute. The vision and need to be fulfilled by the healthcare app must healthcare appeal to the crowd to catalyze funding. After funding is received, developers must deliver on promises and meet backers’ expectations to preserve the trust for future projects.


Factors to Consider When Choosing a Revenue Model


Several factors should guide the selection of a revenue model for a healthcare application. A well-chosen model aligns with the healthcare app’s objectives, satisfies users’ needs, and generates the funds required for sustainability.

  • User needs: Consider what revenue model will best suit your target users. Some groups prefer free basic features while others are willing to pay for more functionality. Choose a model that satisfies your users first.
  • Healthcare app purpose: Match your revenue stream to your healthcare app’s goals. Clinical tools may license features to healthcare providers while health education healthcare apps rely more on donations.
  • User experience: Avoid models like ads, in-healthcare app purchases, and data sales if not implemented carefully, as they could negatively impact trust and the user experience.
  • Costs: Some options require less ongoing work. Subscriptions provide stable funds to cover support costs while remaining simple to implement.
  • Regulations: Understand legal rules for gathering and monetizing health data, and integrating with providers to determine if your chosen model complies.
  • Scalability: Assess if your model can grow with your user base over time or if it will max out early, requiring adjustments.
  • Complementary models: A combination of revenue streams may offer flexibility and stability, though too many can overwhelm users.
  • Metrics: Track key metrics for each revenue source to determine if changes are needed, as metrics vary by model.
  • Agility: Be open to iterating or pivoting your revenue model based on metrics and feedback to find the optimal fit over time.


Factors like impact on user experience, compliance with regulations, ability to scale, and ongoing costs should all inform the choice of revenue model for a healthcare application. No single model is ideal in all cases. Selecting the healthcare-appropriate mix of considerations for your specific healthcare app will lead to the most effective, sustainable option.




Healthcare apps don’t all have the same revenue models. The best option will vary depending on your target audience, the goal of the healthcare app, the possible impact, expenses, scalability, and flexibility over time. The secret is choosing a revenue stream—or mix of streams—that supports your goals, caters to user needs, and provides the funding needed for the creation of healthcare apps and continuous maintenance. By thoroughly considering the factors in this blog, healthcare app developers can choose a revenue model that optimizes their chances of long-term sustainability. It can be done while delivering on their mission to improve users’ health and well-being through technology.



What features should a healthcare app have?


A healthcare app should offer core features that enable it to effectively fulfill its purpose of helping users improve or manage their health. At a minimum, a useful healthcare app will:

  • Track important health indicators relevant to its purpose. This may include activity, diet, sleep, vitals, medication use, etc. Tracking provides data to inform insights and recommendations.
  • Provide personalized insights and suggestions based on the tracked data. Guidance tailored to the individual user is key to driving behavior change.
  • Allow users to set customized, achievable goals related to their health needs. Goals motivate users and keep them accountable.
  • Securely store and transmit user data using encryption, authentication, and other security measures. Health data is sensitive and must be handled responsibly.
  • Ideally integrate with existing electronic health records and providers to create a connected care experience.


Additional useful features may include reminders, health resources/education, social/community features, analytics and dashboards, progress tracking, and customization options. However, the above core functions represent the essential capabilities a healthcare app must offer to be truly beneficial. Without tracking data, insights, goals, and secure data management, a healthcare app can provide little value in improving users’ health.


How do you make a successful healthcare app?


The following considerations will help in making a successful healthcare app-

  • Focus on a specific health need and target user group. Narrow your scope to the right features and design for that audience.
  • Provide valuable core functions like health tracking, personalized insights, secure data storage, and setting achievable goals. These enable real benefits.
  • Design an intuitive user experience that makes data input, navigation, and accessing insights easily. Usability drives engagement.
  • Incorporate social and motivational elements that keep users accountable and progressing toward their goals. Community features and guidance boost effectiveness.
  • Iterate and improve based on user feedback. Continually test, refine, and add new features.
  • Choose a revenue model that aligns with your users and mission. A sustainable model maintains trust.
  • Secure necessary legal and regulatory healthcare approvals. Adhere to health data and provider integration rules.


What is a Healthcare app?


A healthcare app, also known as a healthcare app or medical healthcare app, is a software healthcare application designed to help users manage and improve their health. Healthcare apps allow people to monitor facets of their well-being, provide relevant information and recommendations, and enable communication related to health goals.

They integrate technologies like wearable devices, sensors, and connected equipment to:

  • Collect data to gain insights into users’ health.
  • Offer recommendations based on the collected data.
  • Facilitate interactions related to health and wellness.

Consumer-facing healthcare apps aim to assist individuals with lifestyle changes, fitness progress, and chronic condition management. Provider-focused healthcare apps are designed to help healthcare organizations enhance patient engagement, facilitate remote monitoring, and improve clinical workflows. The key functions of most healthcare applications involve:

  • Tracking health metrics.
  • Providing insights and recommendations.
  • Securely storing sensitive data.
  • Setting achievable goals.


Healthcare apps deliver digital tools, information, and connections that supplement traditional healthcare to help patients proactively manage their health.


What is the aim of a healthcare app?


Healthcare apps allow users to track important health indicators relevant to their goals, providing insights and revealing areas for improvement. The healthcare apps analyze collected data to generate personalized insights and recommendations that can guide positive behavior changes. Users can set customized health goals within the healthcare app that motivate them and keep them accountable.

Since health data is private, the healthcare apps must securely store and transmit user information using encryption, authentication, and other security measures. Some healthcare apps integrate with electronic health records and healthcare providers to facilitate remote monitoring, data sharing, and coordinated care.


Many healthcare apps offer health resources like information, articles, guides, and programs that educate users and support their goals. Some healthcare apps incorporate community and social features that allow users to connect, motivate and encourage one another. The healthcare apps monitor users’ progress toward goals and recommend adjustments based on results.


Healthcare applications aim to harness technologies like data tracking, connected devices, and social elements to deliver information, tools, and support that genuinely improve users’ health and lifestyles in measurable and sustainable ways. Through functions that facilitate data collection, guidance, motivation, and connections to the larger healthcare system, these healthcare apps seek to enable positive changes that go beyond short-term outcomes. The ultimate goal is to improve the health and well-being of users through digital tools and interventions.