Key Takeaways:
- Taction offers three engagement models — Fixed Price, Time-and-Materials (T&M), and Dedicated Team — each designed for different project types, budget structures, and organizational needs.
- Fixed Price works best for well-defined projects with clear requirements. T&M works best for iterative development where requirements evolve. Dedicated Team works best for long-term continuous development.
- All models include US-based project management, HIPAA compliance built into every deliverable, healthcare domain expertise, and full IP ownership transferred to you.
- No hidden costs. No per-user licensing. No lock-in contracts. Transparent pricing from day one.
Three Models, One Standard of Quality
Every healthcare project is different. A startup launching an MVP in 12 weeks has different needs than a hospital system building a multi-year integration platform. The engagement model should match the project — not force the project to match the model.
Taction offers three models. All three deliver the same quality, the same compliance rigor, and the same healthcare domain expertise. The difference is how work is scoped, priced, and managed.
Fixed Price
How It Works
You define the requirements. We define the scope, timeline, and cost. You approve a fixed budget before work begins. We deliver the agreed scope within that budget. No surprises.
Best For
Projects with well-defined requirements and clear deliverables. MVP development with a specific feature set and launch date. Single-phase projects — a patient portal, a telemedicine MVP, an EHR integration. Organizations that need budget certainty for internal approval.
How Pricing Works
We scope the project during a discovery phase (typically 2–3 weeks), produce a detailed specification with feature-level effort estimates, and present a fixed price for the entire project. Changes to scope after agreement follow a documented change request process with transparent pricing.
What You Get
Detailed project specification before work begins. Fixed budget with no overruns on agreed scope. Milestone-based delivery with progress visibility. HIPAA compliance included in the fixed price. Full IP ownership upon delivery.
Typical Price Range
$60K – $300K+ depending on project type and complexity. See our healthcare software development cost guide for ranges by app type.
Time-and-Materials (T&M)
How It Works
You define the priorities. We staff the team. You pay for actual hours worked at agreed rates. Scope is flexible — requirements can evolve sprint by sprint based on user feedback, market learning, and stakeholder input.
Best For
Projects where requirements will evolve based on user feedback. Iterative product development with continuous discovery. Complex projects where the full scope cannot be defined upfront. Post-MVP product development — adding features based on usage data. Organizations that want maximum flexibility over priorities.
How Pricing Works
Agreed hourly or daily rates by role. Monthly invoicing based on actual effort. Transparent time tracking with detailed reporting. No minimum commitment beyond the current sprint. Scale up or down as needed.
What You Get
Full flexibility to reprioritize every sprint. No wasted budget on features that user feedback proves unnecessary. Real-time visibility into how time is spent. Ability to scale team size up or down without contract renegotiation. HIPAA compliance included in all deliverables.
Typical Monthly Range
$30K – $80K/month depending on team size and composition.
Dedicated Team
How It Works
A full team — developers, designers, QA, integration engineers, project manager — is allocated exclusively to your project. The team operates as an extension of your organization, attending your standups, using your tools, and following your processes. You manage priorities. We manage delivery.
Best For
Long-term product development programs (6+ months). Organizations that need continuous development capacity without building an in-house team. Multi-phase projects with ongoing feature development, integration expansion, and platform evolution. Organizations that want the cost efficiency of outsourcing with the control of an in-house team.
How Pricing Works
Monthly flat fee based on team composition. No per-hour tracking — the team is yours full-time. Scale team size up or down with 2–4 weeks notice. Minimum engagement: 3 months (to allow team ramp-up and productivity).
What You Get
A team that knows your product, your workflows, and your clinical domain — not a rotating cast of contractors. Dedicated project manager as your single point of contact. Full integration with your tools (Jira, Slack, Teams, Confluence — whatever you use). HIPAA compliance maintained throughout the engagement. Knowledge retention — the same people work on your project month after month.
Typical Monthly Range
$40K – $100K/month depending on team size. A typical dedicated team includes project manager, 2–3 developers, 1 integration engineer, 1 QA engineer, and access to UX design as needed.
For details on hiring a dedicated team, see our dedicated healthcare development team page.
Side-by-Side Comparison
Factor | Fixed Price | T&M | Dedicated Team |
Budget certainty | High — fixed before start | Medium — based on actuals | Medium — fixed monthly rate |
Scope flexibility | Low — changes require CRs | High — reprioritize every sprint | High — you control priorities |
Best project duration | 2 – 6 months | 3 – 12+ months | 6+ months |
Best project type | Well-defined MVP or feature build | Iterative product development | Continuous platform development |
Team continuity | Project-based assignment | Sprint-based assignment | Dedicated — same team throughout |
Minimum commitment | Per project | Per sprint (2 weeks) | 3 months |
Risk allocation | Taction absorbs scope risk | Client absorbs scope risk | Shared — ongoing collaboration |
Best for | Startups, defined projects | Growing products, evolving scope | Enterprise, long-term programs |
Which Model Should You Choose?
Choose Fixed Price if you have clear, well-documented requirements that are unlikely to change significantly, you need budget certainty for internal approval or board reporting, the project is a defined deliverable (MVP, integration, specific feature set), and speed matters more than flexibility.
Choose T&M if requirements are still being discovered or will evolve based on user feedback, you want to launch quickly and iterate based on real-world usage, the project involves complex clinical workflows that need to be validated with actual users, and you value flexibility over budget certainty.
Choose Dedicated Team if you need continuous development capacity for 6+ months, you want the team to deeply understand your product and clinical domain, building an in-house team is too expensive or too slow, and you want to scale team size without recruiting overhead.
Not sure? That is normal. Many clients start with Fixed Price for the MVP, then transition to T&M or Dedicated Team for post-launch iteration. We help you choose the right model during the free consultation.
What All Models Include
Regardless of which model you choose, every Taction engagement includes US-based project management and architecture leadership, HIPAA compliance built into every deliverable, healthcare domain expertise (EHR integration, clinical workflows, compliance), transparent communication (weekly status updates, sprint demos, direct Slack/Teams access), full IP ownership transferred to you upon delivery, and no per-user licensing — you own the code, forever.
Pricing Transparency
We do not hide pricing behind “contact us for a quote.” Here are our typical ranges.
Role | Hourly Rate Range |
Project Manager | $60 – $90/hr |
Solution Architect | $80 – $120/hr |
Senior Developer | $60 – $100/hr |
Mid-Level Developer | $45 – $75/hr |
Integration Engineer (Mirth/FHIR) | $70 – $110/hr |
UX/UI Designer | $50 – $80/hr |
QA Engineer | $40 – $65/hr |
HIPAA Compliance Lead | $80 – $120/hr |
These rates reflect our US-management + offshore-development model. Fully US-based teams are available at higher rates. Rates for Dedicated Team engagements are typically 10–15% lower than T&M due to the guaranteed commitment.
Discuss Your Engagement Model Not sure which model fits? Schedule a free 30-minute consultation. We will assess your project scope, timeline, and budget and recommend the right approach. Discuss Your Model →
Related Resources:
Frequently Asked Questions
Yes. Many clients start with Fixed Price for the MVP and transition to T&M or Dedicated Team for post-launch development. We handle the transition seamlessly.
T&M and Dedicated Team models can scale within 2–4 weeks. We maintain a bench of healthcare-experienced engineers who can onboard to active projects quickly.
You do. All IP is transferred to you upon delivery. This is standard in all Taction contracts regardless of engagement model.
We offer ongoing maintenance and support packages (typically 15–25% of initial build cost annually). Alternatively, Dedicated Team engagements continue seamlessly into maintenance phase. We also provide knowledge transfer if you prefer to bring maintenance in-house.
Fixed Price has no ongoing commitment beyond the project. T&M has no minimum beyond the current sprint. Dedicated Team has a 3-month minimum to ensure team ramp-up and productivity. No model has forced long-term lock-in.
