How Healthcare SaaS Supports Modern Infrastructure

What Is SaaS, and Why Does It Matter in Healthcare?

Craig Connors, vice president and CTO of infrastructure and security at Cisco, describes SaaS as a way of delivering and licensing software that is cloud-based.

“Applications are accessed online by subscription rather than purchased and installed on the user’s device,” he says.

Because SaaS solutions can typically be implemented faster than traditional software, healthcare providers can adopt new technologies that address critical needs, especially in the era of telehealth and virtual care.

Forrester senior healthcare analyst Shannon Germain Farraher says SaaS empowers healthcare organizations to test and iterate ideas quickly, enabling faster innovation in a sector that’s traditionally slow to adapt.

“SaaS platforms provide scalable, HIPAA-compliant environments that function like virtual data centers, helping tackle operational and clinical challenges more affordably,” she says.

Farraher also highlights the value of SaaS in delivering a comprehensive, “360-degree view” of patients and operations, improving interoperability and supporting new marketplace models that streamline services such as revenue cycle management.

READ MORE: SaaS can power productivity when it matters most.

Building a Modern Healthcare Infrastructure With SaaS

Traditional healthcare IT systems often struggle with high maintenance costs, security risks and limited flexibility. SaaS solutions address these challenges by offering scalable services, secure remote access and cost savings through cloud-based infrastructure.

“Choosing to buy software rather than build it allows healthcare organizations to accelerate speed to market and stay current with rapid technological advances such as artificial intelligence,” says Zendesk CIO Craig Flower.

As hospitals, clinics and private practices adopt these platforms, healthcare SaaS is growing rapidly: SaaS solutions support everything from electronic health records to telemedicine, making healthcare more accessible and efficient for patients.

Key Benefits of SaaS for Healthcare Providers

Predictable costs, faster adoption and reduced infrastructure overhead are among the key benefits SaaS adoption can bring to healthcare providers.

“SaaS helps them scale services up or down and shift from capital expenses to operating models,” explains Aaron Smith, principal cybersecurity engineer at Quest Software.

These solutions can also support open standards such as Fast Healthcare Interoperability Resources (FHIR) to enable interoperability and often provide integration options out of the box, while also offering modern resiliency as part of the service.

“With SaaS, backup and recovery tools can be centralized, automated and tested more easily than in many on-premises environments,” Smith says.

Connors adds that SaaS technologies allow patients to manage appointments and access healthcare services on demand, which fosters a more connected and proactive healthcare experience.

“SaaS-based communication platforms enable personalized patient interactions, better healthcare management and real-time feedback collection, improving patient satisfaction and outcomes,” he says.

Navigating Security and Compliance in SaaS Environments

Flower says maintaining control over data flows, third-party services and responsibilities is essential when moving protected health information into any SaaS environment.

“The first step is understanding what data is involved in interactions with a cloud provider and ensuring that PHI is handled only by mature services that provide appropriate security and privacy assurances,” he explains.

It’s important to clarify which security controls the organization must manage and which are managed by the SaaS provider, Flower says.

“Staying informed about changes in SaaS offerings can help optimize usage and maintain compliance,” he says.

Transparency around security and privacy programs, clear communication about the types of data involved and customer responsibilities, and healthcare-specific configuration are key factors in managing these risks.

From Smith’s perspective, strong identity and access management is the starting point. That includes multifactor authentication, role-based access controls, regular audits and a timely and robust offboarding procedure.

“A zero-trust mindset, where nothing is trusted by default, helps reduce exposure from compromised accounts or devices,” he adds.

Future SaaS Trends Shaping Healthcare IT

Smith says one major trend is the convergence of SaaS and AI.

“More platforms are embedding AI for clinical decision support, patient triage, documentation and even scheduling,” he says. “Interoperability is improving too, with growing support for open standards like FHIR.”

Frank Attaie, general manager for public sector, healthcare and life sciences at IBM, says he agrees that AI and SaaS have a great future together.

“AI and machine learning technology help healthcare organizations sift through their data to find valuable and actionable business insights,” Attaie says.

With these AI-embedded SaaS solutions, healthcare organizations can better integrate, automate and secure their complex operations across multiple environments.

“Ultimately, they also help healthcare organizations build cost savings and efficiencies to further invest in growth, patient-oriented applications and new services,” he says.

Despite the promise, Smith cautions that AI in healthcare is far from perfect.

“Algorithms must be explainable, tested on diverse populations and used alongside, not in place of, clinical judgment,” he says.

As more decisions move into AI-enabled SaaS environments, accountability becomes murkier.

“Healthcare organizations need clear governance for how AI is deployed, reviewed and corrected when it fails,” Smith says.