Why Healthcare Technology Should Be a Public Good
The largest electronic health record company in the United States generated over $4 billion in revenue last year. Meanwhile, community health centers that serve the nation's most vulnerable patients struggle to afford basic EHR systems. Something is fundamentally broken about this model. Ciyex exists because we believe healthcare technology should be a public good, not a profit center.
The For-Profit EHR Landscape
To understand why the nonprofit model matters, consider the current state of the healthcare IT industry.
A handful of companies dominate the EHR market. The top three vendors control over 60% of the hospital market and an even larger share of the ambulatory market. These companies have built enormously profitable businesses by selling software licenses to healthcare organizations that have little choice but to buy.
The revenue model is straightforward: charge per provider, per month, for access to software that healthcare organizations cannot function without. Add implementation fees, interface fees, training fees, and customization fees on top. Lock in customers with proprietary data formats that make switching prohibitively expensive.
This model has produced extraordinary financial results for EHR vendors. It has not produced proportionally extraordinary results for patients or providers.
Consider these facts:
- Provider burnout rates remain near 50%, with EHR-related documentation burden cited as a primary contributor.
- Interoperability between different EHR systems remains poor despite billions spent on health information exchange.
- Small and rural practices are closing at accelerating rates, with technology costs frequently cited as a contributing factor.
- Patient data remains largely siloed within vendor-specific ecosystems.
The market incentives are misaligned. EHR vendors profit from complexity, from switching costs, and from feature fragmentation that drives upsell revenue. Patients and providers pay the price.
The Case for Nonprofit Healthcare Technology
Ciyex is structured as a 501(c)(3) nonprofit organization. This is not a branding decision. It is a structural commitment that shapes every aspect of how we build and distribute software.
Aligned Incentives
A nonprofit's primary obligation is to its mission, not to shareholders. For Ciyex, that mission is making healthcare technology accessible to every organization that needs it, regardless of their ability to pay.
This alignment manifests in concrete ways:
- No per-provider fees: We will never charge licensing fees because our mission requires accessibility. Licensing fees create barriers. Our structure prohibits us from creating barriers.
- No artificial feature limitations: We will never gate critical features behind premium tiers. Every clinic, from the smallest rural practice to the largest FQHC network, gets the full platform.
- No data hostage-taking: We will never charge for data export because patient data belongs to patients and their healthcare providers, not to software vendors.
Financial Sustainability Without Extraction
The obvious question is: how does a nonprofit fund software development? The answer involves multiple revenue streams, none of which extract value from the organizations we serve.
Tax-Deductible Donations
As a 501(c)(3), donations to Ciyex are tax-deductible for U.S. taxpayers. This includes:
- Individual donors who believe in accessible healthcare technology
- Foundations focused on health equity, technology access, or open source sustainability
- Corporate sponsors who want to demonstrate commitment to public good
- Healthcare organizations that benefit from the software and choose to contribute
Grants
Numerous grant programs fund healthcare technology innovation, particularly for organizations serving underserved populations. As a nonprofit focused on community health center technology, Ciyex is eligible for funding from:
- Federal programs (HRSA, ONC, NIH)
- State health departments
- Private foundations (Robert Wood Johnson Foundation, Commonwealth Fund, Gates Foundation)
- Technology-focused foundations (Mozilla Foundation, Ford Foundation)
Support Services
While the software itself is free, organizations may need help with implementation, training, data migration, and customization. Ciyex offers these services on a fee-for-service or sliding-scale basis, ensuring that revenue from support services funds further development.
Managed Hosting
For organizations that prefer not to manage their own infrastructure, Ciyex offers managed hosting at cost-recovery pricing. This provides a sustainable revenue stream while ensuring that even hosting costs remain far below what proprietary vendors charge.
Transparency and Accountability
Nonprofit organizations are subject to public accountability requirements that for-profit companies are not:
- Annual Form 990 filings: Our financial statements are public record. Anyone can see how funds are raised and spent.
- Board governance: Our board of directors includes healthcare providers, community health center administrators, and technology leaders who ensure that our decisions serve the mission.
- Open source code: Our entire codebase is public. Not just the technical implementation, but our development priorities, our issue tracker, and our decision-making process.
"When you donate to Ciyex, you are not just supporting software development. You are investing in healthcare infrastructure that will serve communities for decades."
Comparison with the For-Profit Model
To illustrate the structural difference, consider how a for-profit EHR company and Ciyex would handle the same scenario.
Scenario: A new CMS quality reporting requirement is published.
For-profit approach: The vendor adds the reporting feature to their development roadmap. It ships in the next major release, available to customers on the Premium tier. Customers on lower tiers must upgrade. Implementation support is available for an additional fee. Timeline: 6 to 12 months.
Ciyex approach: The community identifies the requirement. Developers from multiple health centers collaborate on the implementation. The feature is released to everyone simultaneously. Implementation guides are published openly. Timeline: weeks to months, depending on complexity.
Scenario: A small rural clinic cannot afford their current EHR.
For-profit approach: The vendor may offer a temporary discount, but the fundamental pricing model does not change. The clinic either finds the money, reduces its provider count to lower costs, or goes without a modern EHR.
Ciyex approach: The clinic deploys Ciyex at no cost. If they need implementation support and cannot afford it, the community and grant-funded support programs help fill the gap.
Tax-Deductible Impact
For donors, contributing to Ciyex offers a unique form of impact. Unlike donations to healthcare delivery organizations that serve patients directly, donations to Ciyex create infrastructure that enables healthcare delivery at scale.
Consider the leverage: a $10,000 donation to a community health center might cover a few weeks of operating costs for that single center. A $10,000 donation to Ciyex might fund a feature that saves hundreds of community health centers thousands of dollars each, year after year. The return on impact is multiplicative.
This infrastructure-level giving is increasingly recognized by major foundations as one of the most effective forms of philanthropic investment in healthcare.
Sustainable Open Source
The open source sustainability challenge is well documented. Many critical open source projects are maintained by small teams with inadequate funding. The nonprofit model addresses this challenge structurally.
Why the nonprofit model works for open source healthcare software:
- Clear mission alignment: The nonprofit mission (accessible healthcare technology) directly aligns with the open source model (freely available software). There is no tension between business needs and community needs.
- Diverse funding sources: Unlike venture-backed open source companies that depend on commercial traction, nonprofits can draw from donations, grants, and service revenue simultaneously.
- Community governance: Nonprofit governance structures give the community a formal voice in project direction, preventing the rug-pull scenario where a venture-backed company changes licensing terms.
- Long-term orientation: Without the pressure to demonstrate quarterly growth to investors, the organization can make decisions that optimize for long-term community benefit.
Join the Movement
Building healthcare technology as a public good requires a community. Here is how you can participate:
- Healthcare organizations: Deploy Ciyex and share your experience. Your feedback shapes the product.
- Developers: Contribute code, documentation, or testing. Every contribution moves the mission forward.
- Donors: Fund the development of features that serve communities who cannot afford to fund them themselves.
- Advocates: Share the vision of nonprofit healthcare technology with your network. The more organizations that know about this model, the more patients benefit.
Healthcare technology is too important to be left entirely to market forces. When the market fails to serve 30 million patients at community health centers, when small practices close because they cannot afford basic software, when patient data is held hostage by vendor lock-in, the market is failing.
Nonprofit, open source healthcare technology is not just an alternative. It is a necessity.
Learn more about Ciyex at ciyex.org, or contribute on GitHub.
