5 Steps to Successfully Modernize Healthcare Applications in 2025

73% of U.S. healthcare providers still rely on outdated software, costing the government $337 million annually. Modernizing healthcare applications can improve patient care, ensure compliance, and reduce costs. Here's a quick guide to the 5 steps for successful modernization:

1. Review Current Systems: Assess performance, security, compliance, and integration issues.
2. Set Clear Goals: Define objectives like improving workflows, meeting regulations, and enhancing data sharing.
3. Choose Modernization Methods: Options include rehosting, refactoring, rearchitecting, or rebuilding systems.
4. Add New Technology: Integrate AI, cloud platforms, and APIs for better efficiency and compliance.
5. Deploy and Monitor: Test thoroughly, launch, and track system performance and security.

What is Healthcare Application Modernization?

Healthcare application modernization involves updating outdated software to align with today’s needs while maintaining HIPAA compliance and strong data security. It changes how providers, patients, and other stakeholders connect and interact.

"The goal of application modernization is to enhance an organization's applications to meet the needs of internal users and external customers. Modernizing applications can rapidly transform how people interact with an organization." - Jenn Roth, product marketing director of data and AI platform for healthcare at Microsoft ^[2]

Key Elements of Healthcare Modernization

Modern healthcare applications are built on:

• Cloud Infrastructure: Provides scalable storage and ensures HIPAA compliance and strong security measures.
• Data Integration: Supports HL7 FHIR standards for better interoperability across systems.
• Security Framework: Includes end-to-end encryption and strict access controls to protect sensitive information.

These elements help shape the roadmap for a structured, five-step modernization process.

Challenges in the Healthcare Industry

Regulatory and Security Concerns
Ensuring HIPAA compliance while implementing encryption and access controls is non-negotiable. According to Forrester research, organizations often see improved security and performance when they transition applications from on-premises systems ^[2][3].

Dependence on Legacy Systems
Modernization needs to maintain existing workflows and protect data integrity during the migration process.

Budget Constraints
Balancing the costs of transformation with ongoing operational expenses requires careful planning.

With this groundwork in place, we’ll move on to Step 1: Reviewing current systems.

Step 1: Review Current Systems

Once you're familiar with the modernization framework, the first task is to map out your existing systems. This will help shape your roadmap moving forward.

How to Assess Current Systems

Focus on these key areas during your evaluation:

• Performance: Look at response times, downtime, and resource usage.
• Security & Compliance: Check for vulnerabilities and ensure adherence to HIPAA requirements.
• Integration: Assess how well systems communicate and exchange data.
• User Experience: Review interface design and workflow efficiency.
• Maintenance & Support: Evaluate costs and vendor updates.

Keep track of metrics like:

• Application performance
• Resource usage
• Security incidents and compliance status
• User interaction and behavior patterns

Tools and Team Roles for Assessment

Here’s who you’ll need and what they’ll do:

1. IT Security Specialists: Handle compliance audits and security checks.
2. Systems Architects: Examine technical infrastructure and integration capabilities.
3. Clinical Staff Representatives: Offer feedback on workflows and usability.
4. Data Analytics Team: Dive into performance data and usage trends.

The AWS Well-Architected Tool is a helpful resource for assessing cloud architecture and designing scalable solutions ^[5].

Red Flags to Watch For

Certain issues may signal the need for immediate updates:

• Frequent crashes or slowdowns
• Increasing maintenance expenses
• Security flaws that could jeopardize HIPAA compliance
• Limited integration holding back new technology adoption
• Workflow issues that impact patient care

Use these findings to establish clear objectives as you move to Step 2.

Step 2: Set Clear Goals

After assessing your current setup, it's time to define goals that align your organization's needs with industry standards. Focus on these areas:

• Improve patient engagement and streamline clinical workflows.
• Evaluate outdated systems to decide which to modernize or retire.
• Ensure compliance with CMS Interoperability and Prior Authorization Final Rule, as well as HIPAA requirements.
• Create workflows for real-time data sharing to support seamless information exchange ^[2].

Include Key Decision Makers

Assemble a core planning team that includes:

• Clinicians, IT staff, executive leaders, developers, QA specialists, and subject matter experts.

"Any organization can reap the benefits of adopting a modernization roadmap. Staffing, cost implications, contracting and even security and compliance are made easier by having a roadmap." ^[2]

"You can't just pick it up and shift from the mainframe to the cloud. A lot of business process redesign needs to happen, and a lot of new technology has to be put in place for things like cybersecurity." ^[4]

Use the performance, security, and workflow gaps identified in Step 1 to shape your objectives. Engage stakeholders for their insights, set up cross-functional teams, and ensure open communication throughout the process ^[1].

Step 3: Choose Modernization Methods

Now that you've set clear goals in Step 2, it's time to pick a modernization approach that fits your system's needs, budget, and priorities. Each method should align with the objectives and resource gaps you identified earlier.

Here are four approaches to consider, depending on your goals for performance, compliance, and cost:

4 Modernization Options

• Rehosting (Lift and Shift): Move your applications to the cloud without making changes. This is a fast way to cut costs.
• Refactoring: Make adjustments to the code to improve performance during the migration process.
• Rearchitecting: Break down monolithic applications into microservices to improve scalability and flexibility.
• Complete Rebuild: Rewrite the application entirely as cloud-native to increase flexibility and prepare for future needs.

How to Evaluate Each Option

When deciding which approach works best, consider these factors:

• Business Value and Agility: Which method will deliver quick returns and align with your strategic goals?
• Risk and Compliance: How well does the approach handle industry regulations and minimize potential disruptions?
• Cost and Complexity: What resources are needed, and how challenging is the implementation?
• Scalability and Future-Readiness: Does the method allow for growth and adaptation to changing needs?

Once you've chosen the best approach, you'll move on to integrating new technologies in Step 4.

Step 4: Add New Technology

Once you've chosen your modernization strategy, it's time to incorporate tools that boost efficiency, ensure compliance, and improve patient care.

AI and Cloud Integration

Roll out AI in stages to simplify tasks like coding and documentation, enhance clinical decision-making, and offer personalized care through data insights. Use a HIPAA-compliant cloud platform to handle AI workloads as you expand. This approach helps improve clinical workflows and tailor care to individual patients.

Linking Healthcare Systems

Use automated API generation to create secure connections between different systems. This ensures smooth data sharing while adhering to healthcare regulations and industry standards.

Step 5: Deploy and Monitor

After integrating AI and cloud services in Step 4, it's time to validate those changes through thorough testing and continuous monitoring.

Testing and Launch Steps for New Integrations

Once AI and cloud tools are added, targeted testing is crucial to ensure everything works as expected. Assemble a cross-functional team that includes developers, quality assurance specialists, and subject matter experts like healthcare practitioners, IT security professionals, and compliance officers.

Here are four key areas to focus on during testing:

• User Acceptance Testing: Healthcare staff should validate workflows and interfaces to ensure they meet clinical requirements.
• Performance Testing: Simulate peak workloads and large data volumes to confirm the system can handle stress without slowing down.
• Security Testing: Verify the system complies with HIPAA regulations to safeguard patient data.
• Integration Testing: Check that data flows seamlessly between connected systems without compromising data integrity.

Once these tests are successfully completed, you can move forward with live deployment, keeping monitoring systems active from the start.

Track System Performance

Real-time monitoring is essential to track performance, security, compliance, and data integrity. This helps you catch and address issues before they impact patient care.

Key areas to monitor include:

• System health: Keep an eye on CPU and memory usage, as well as system response times.
• Security events: Watch for unusual activity or signs of potential breaches.
• Compliance: Ensure the system continues to meet regulatory requirements.
• Integration: Monitor data exchange and integrity across connected services.

For effective monitoring:

1. Define performance indicators (KPIs) and acceptable thresholds.
2. Use monitoring tools that provide real-time alerts.
3. Regularly analyze the data to identify areas for improvement.

Conclusion

Updating healthcare applications requires a clear, step-by-step process to improve compliance, security, and patient care. The five-step framework - assessing current systems, setting specific goals, selecting the right upgrade method, incorporating AI and cloud technologies, and finally deploying and monitoring - helps protect data, meet regulations, and improve clinical workflows.

In particular, using AI and HIPAA-compliant cloud platforms (Step 4) enhances security, supports scalability, and improves clinical processes while adhering to strict regulatory standards. This combination allows healthcare providers to improve operations with better performance and smoother data sharing.