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What is SaaS (Software as a Service)?

Last updated: Nov 26, 2025

Glossary › SaaS (Software as a Service)

SaaS (Software as a Service) Definition

SaaS is the "Subscription Economy" for healthcare. For Payer and Provider Executives, it shifts IT costs from CapEx (buying a huge system upfront) to OpEx (paying a monthly fee). Examples include Athenahealth for EHR or Salesforce for Healthcare CRM. Operationally, SaaS is "Low Maintenance"—the vendor handles all the security patches, version updates, and bug fixes, so the hospital’s IT team doesn't have to. Strategically, SaaS allows smaller practices to access the same high-powered technology as large hospitals, "Leveling the Playing Field" by making advanced software affordable and easy to deploy without needing a dedicated server room.

FAQs

Can I customize a SaaS application?

To an extent. Most SaaS tools are "Configurable" (you can change settings), but you cannot change the underlying "Source Code" like you could with custom-built software.

What happens to my data if I cancel a SaaS subscription?

Your contract should include a "Data Portability" clause, requiring the vendor to return all your data in a usable format (like a CSV or SQL file) upon termination.

Are all cloud solutions SaaS?

No. SaaS is the software; there are also IaaS (Infrastructure/Servers) and PaaS (Platforms for developers).

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