The healthcare industry has undergone massive changes in recent years with the adoption of new technologies like artificial intelligence, machine learning, and blockchain. Of these, blockchain is poised to have a hugely disruptive and positive impact on healthcare in the coming years.
Blockchain is essentially a distributed, decentralized, public ledger that allows the secure, transparent, and tamper-proof recording of transactions. While blockchain is often associated with cryptocurrencies like Bitcoin, the technology has many other potential use cases, especially in the healthcare industry.
Some major areas where blockchain can influence healthcare include better data security and privacy, supply chain tracking, clinical trials, medical credentials verification, health insurance, and more. There are already many promising blockchain healthcare startups working on solutions in these domains.
This article will provide an in-depth look at how blockchain is bringing innovation into healthcare. We will cover the following topics:
Table of Contents:
- About of Blockchain Technology
- Why Blockchain is Well Suited for Healthcare
- Key Benefits of Blockchain in Healthcare
- Blockchain Use Cases in Healthcare
- Healthcare Data Security with Blockchain Networks
- Blockchain-Based Supply Chain Management
- Clinical Trial Data on Blockchain
- Medical Credentials Tracking using Blockchain
- Health Insurance Claims Processing Using Smart Contracts
- Challenges to Adoption of Blockchain in Healthcare
- Promising Blockchain Healthcare Startups to Watch
- The Future of Blockchain in Healthcare
About of Blockchain Technology
To understand the impact of blockchain on healthcare, we must first understand what blockchain technology is and how it works.
A blockchain is essentially a decentralized, distributed public ledger that permanently records transactions in a secure and transparent manner across a peer-to-peer network. It is managed by a cluster of computers that must all approve a transaction before it can be recorded on the blockchain.
Once information is entered on a blockchain, it becomes very difficult to alter it retroactively. Additionally, the data is encrypted and spread across the network of computer systems instead of being stored on a single server. This makes hacking or corrupting the data nearly impossible.
The first and most well-known application of blockchain technology is the Bitcoin cryptocurrency. However, the ability for blockchain technology to enable secure data transfer and decentralized record keeping lends itself extremely well to many other uses like healthcare data management.
Some of the defining characteristics of blockchain technology include:
Decentralization – No single entity controls the network
Transparency – All parties can view and verify transactions
Immutability – Recorded data cannot be easily altered
Security – Data is encrypted and spread across networks instead of single servers
These features lend themselves very well to sharing sensitive patient healthcare data like medical records, test results, treatment plans etc. Healthcare providers can leverage blockchain technology to make health data management more secure, transparent and trustworthy.
Why Blockchain is Well Suited for Healthcare
The healthcare industry generates and handles a huge amount of sensitive patient data related to health records, insurance claims, clinical trials data, supply chain tracking and more. There are many advantages to using blockchain technology to manage this data:
Enhanced Security
Healthcare data like patient records often contain highly sensitive personal information. By storing this data using blockchain technology, it becomes almost impossible for hackers to steal or manipulate the data. The records are encrypted, distributed, and timestamped across thousands of computers on a peer-to-peer network. This prevents a single point of failure. Any changes would need approval from all parties on the network.
Trust and Transparency
As patients’ data is shared with insurance companies, healthcare providers, researchers and drug manufacturers, maintaining trust is crucial. Blockchain serves as an immutable ledger so that the various healthcare stakeholders can access health data that they can trust has not been altered. It also enhances overall transparency.
Reduced Administrative Costs
Blockchain technology can reduce administrative healthcare costs in terms of data management, claims processing, credentials checks, supply chain tracking and more. Automating these manual processes using smart contracts helps cut down administrative expenses.
Empowered Patients
Blockchain puts patients in charge of their own health data. It allows setting permissions on who can access medical records so that only approved healthcare providers get access. Giving patients control over their sensitive personal information fosters trust.
Given its clear advantages, blockchain adoption in healthcare is accelerating rapidly. Let’s look at some of the key benefit areas of blockchain in healthcare.
Key Benefits of Blockchain in Healthcare
Blockchain brings several major opportunities for innovation in healthcare when it comes to data security, integrity, and interoperability. Some of the most impactful benefits include:
1. Enhanced Healthcare Data Security
Protecting sensitive patient medical records is a top priority for healthcare providers and institutions. However, health data systems still get hacked frequently, compromising patients’ privacy.
Blockchain networks significantly bolster data security defenses through:
- Decentralized data storage across networks instead of using centralized databases
- Cryptographic data encryption makes health data indecipherable to hackers
- Access controls for allowing only authorized healthcare professionals to access records
These security layers make stealing or corrupting medical records extremely difficult compared to traditional data servers.
2. Guaranteed Data Integrity
Another key benefit of blockchain is ensuring the integrity of healthcare data. Records like diagnoses, lab reports, or clinical trial data cannot be altered without approval from all nodes in a blockchain network.
If any party tries to change a patient’s health records retroactively, every other node would know, ensuring data integrity. Tamper-evident record-keeping is crucial for the healthcare industry.
3. Seamless Interoperability and Data Sharing
Currently, health records exist in siloed databases across hospitals, clinics, labs, pharmacies etc. There are huge challenges around sharing these records securely when required for continuity of patient care.
Blockchain enables different healthcare providers to access distributed ledgers of patient data seamlessly without compromising security. This interoperability supports coordinated care across multiple facilities.
4. Supply Chain Tracking and Anti-Counterfeiting
Another blockchain use case gaining rapid traction is tracking drugs supply chain including provenance and transportation of pharmaceuticals. Blockchain tracking ensures authenticity of drugs and prevents counterfeits entering supply chains through multiparty verification of goods movement.
5. Accelerating Clinical Trials
Clinical trials can take many years and cost millions. A big challenge is tracking patient consent, trial protocols, research data etc. across multiple sites and stakeholders. Using blockchain provides a transparent dashboard for accessing real-time trial data securely. This has the potential to cut years off of clinical trials timelines.
There are many more applied benefits of blockchain for healthcare which we will explore through some real-world examples and use cases in the next section.
Blockchain Use Cases in Healthcare
Many exciting use cases are emerging for blockchain technology across the healthcare industry for data exchange, identity management, insurance claims processing and more. Some examples include:
1. Healthcare Data Security with Blockchain Networks
As discussed earlier, one of the most valuable applications of blockchain is securing the vast amounts of sensitive patient data that the healthcare industry generates and relies upon daily.
Medical identity theft affected almost 2.3 million Americans in 2019 alone. Meanwhile, healthcare organizations fall victim to data breaches frequently. Blockchain networks offer a much more secure system for health information exchanges.
Organizations like MedRec are pioneering blockchain systems for managing electronic medical records (EMRs). Their open source record management platform keeps patient data private while allowing access to healthcare providers when required for coordinated care.
The Ledger of Everything (LO3) is another blockchain startups using decentralized ledger technology for healthcare data security. Their platform called Exergy enables hospitals to share data across facilities without compromising compliance or privacy.
Such initiatives demonstrate the massive potential for transforming record management using blockchain security, transparency and access controls. They prevent tampering while permitting appropriate controlled data sharing between medical practitioners caring for the same patients.
2. Blockchain-Based Supply Chain Management
Pharmaceutical companies and healthcare providers handle vast specialized inventories including drugs, devices, blood products, organs and more. Blockchain presents enormous opportunities for improving supply chain efficiency.
One company called Chronicled is using blockchain and IoT sensors to track temperature-sensitive drugs through production, cold chain transport and delivery. Patients, hospitals and pharmacies can verify chain of custody across multiple touch points to validate authenticity.
Startups like HashesHealth and FarmaTrust are also developing blockchain platforms for end-to-end tracking of pharmaceuticals supply chains. This prevents counterfeits, enforces quality standards and automates order fulfillment between manufacturers, wholesalers, clinics/pharmacies etc.
Such blockchain-based supply chain tracking is becoming crucial for healthcare organizations to comply with regulations and maintain inventory quality controls. It also gives patients confidence that the drugs they are purchasing are genuine.
3. Clinical Trial Data on Blockchain
Clinical trials evaluating safety and efficacy of new drugs and devices are lengthy and expensive undertakings. They can stretch over many years and generate vast troves of patient data.
Research organizations must carefully track consent, trial protocols, subject compliance, reported outcomes and adverse reactions etc. across multiple sites and subject groups. Recording all this data transparently and without errors is critical yet hugely challenging.
Using blockchain provides research teams with a modern platform for seamless data capture, sharing and analysis between research sites and sponsors in real-time. Startups like ClinTex are building clinical trials management platforms on blockchain to track all stages of studies while maintaining subjects’ privacy and data security.
Such innovative systems have potential to massively accelerate clinical trials, new drug approvals and time-to-market while upholding compliance and research integrity.
4. Medical Credentials Tracking using Blockchain
Another emerging use case lies in tracking credentials of healthcare professionals. Blockchain ledgers serve as reliable directories that permanently log qualifications, practicing licenses, training certificates etc. while preventing falsifications.
Healthcare organizations can save huge amounts of time and money previously spent on manually verifying credentials and doing background checks on new hires. Meanwhile, the ledger also makes it easier for medical practitioners to share verified qualifications when applying for new jobs.
Companies like Professional Credentials Exchange (ProCredEx) are pioneering verificarion of doctors, nurses and clinical researchers’ education, qualifications and disciplinary records on blockchain.
Such reliable credential tracking platforms give healthcare employers confidence while onboarding new staff and also helps working clinicians easily provide verified credentials when changing jobs.
5. Health Insurance Claims Processing Using Smart Contracts
Processing and reimbursing the multitudes of healthcare claims from patients and providers becomes extremely complex despite digitization. There is massive potential for automation using smart contracts that self-execute based on coded logic.
Using blockchain-based smart contracts programmed to handle common health insurance claims scenarios (like coverage amounts for procedures) can drastically reduce turnaround times and costs associated with manual claims assessments and approvals.
Startup companies like Healthereum are doing pioneering work around smart contract powered insurance solutions. Healthcare payers can integrate their systems with Healthereum to trigger automatic claim execution and reimbursement based on event triggers and customized policy terms.
Challenges to Adoption of Blockchain in Healthcare
While blockchain innovation pushes ahead, there are still some key challenges around mainstream adoption of the technology within the healthcare ecosystem:
Integration with Legacy Systems
Current healthcare IT systems like EHRs, e-Prescribing etc. still rely on older infrastructures. Integrating these legacy setups with modern blockchain networks involves large data migration efforts and revamped interfaces for healthcare personnel.
Industry Collaboration is Essential
To tap into the full potential of blockchain in healthcare requires active cross-industry collaboration between payers, providers, regulators, drug/device manufacturers, researchers and patients advocacy groups. Alignment across stakeholders is still a work in progress.
Password Management
Blockchain wallets used by patients to access their health records rely on possession of a private password. Losing passwords can permanently block access which is stressful. Password recovery mechanisms have to be robust.
Compliance Considerations
Healthcare is a highly regulated industry. In some use cases like IoT-linked medical devices, blockchain systems must comply with laws like HIPAA while permitting data sharing. Striking the right balance is crucial for providers.
Skills Shortage
There is currently a dire shortage of qualified blockchain developers. Additionally healthcare personnel need training to use blockchain-based data systems and analyze encrypted data. Upskilling staff is critical for successful deployments.
Consumer Literacy
Patients interacting with blockchain-backed technologies like accessing insurance coverage on the go or controlling access permissions to their medical histories will require general awareness of blockchain principles for smooth adoption.
In spite of these adoption hurdles, healthcare blockchain startups are making excellent progress driven by massive demand potential. Many of these innovative companies are worth tracking.
Promising Blockchain Healthcare Startups to Watch
There is tremendous investor interest and startup activity focused on bringing blockchain platforms tailored to major healthcare industry needs including data exchanges, drug supply monitoring, insurance claims processing and more.
Here are some of the most promising blockchain healthcare startups making waves:
1. Patientory – Their innovative application allows users to store and control access to medical records securely using blockchain technology. Gives patients ownership over health data.
2. Simpilot – Developing blockchain insurance solutions like real-time claims adjudication through smart contracts to lower admin costs and settlement times.
3. RoboMed – Using AI, blockchain, IoT sensors to enable automated diagnosis, treatment planning to expand healthcare access and personalization.
4. Doc.ai – Using natural language processing, computer vision and blockchain to power decentralized precision medicine and clinical analytics applications.
5. Medicalchain – Providing blockchain infrastructure for electronic health records that allows patients to grant access permissions to doctors across any healthcare provider.
6. Gem – Pioneering enterprise blockchain solutions like Gem Health Network allowing payers, providers and life sciences companies to securely share healthcare data.
7. Hashed Health – Compliance-focused blockchain firm working with hospitals, health plans, life science cos to exchange health data maintaining privacy standards.
8. Solve.Care – Developing a blockchain care coordination platform so insurers can automate claims processing through smart contract powered disease management programs.
There are 100s more startups and well-funded ventures working hard to disrupt the healthcare industry using cutting edge blockchain platforms. It will be exciting to see healthcare transformed as these companies refine solutions and spur large-scale adoption over the coming decade.
The Future of Blockchain in Healthcare
Blockchain has almost limitless potential to transform how the healthcare industry handles its ever-increasing troves of critical patient data for uses like vital records management, supply tracking, claims processing, clinical trials and more.
Leading healthcare organizations are already conducting blockchain proof-of-concept testing, innovator pilot programs and production development partnerships focused on the biggest pain points around security, trust and interoperability of health data.
As enterprise blockchain solutions gain more traction coupled with advances in associated technologies like IoT medical devices integration and healthcare-tuned artificial intelligence, we will see massive gains in quality of care and efficiency through 2025 and beyond.
Patient-centric blockchain platforms will give more control to healthcare consumers when it comes to ownership of medical histories. Meanwhile seamless, legible data exchanges will support coordinated diagnosis and treatment across different providers ranging from family doctors to medical laboratories to pharmacies and insurers.
Other key trends will be automation of insurance claims leveraging smart contract rules engines as well as tighter supply side monitoring across pharmaceutical supply chains using blockchain tracking and IoT sensors to prevent substandard or outright counterfeited drugs entering markets.
Overall blockchain adoption in healthcare will enormously benefit patients, providers, payers and population health initiatives driven by enhanced data security, reduced costs, improved insights and potentially life-saving system efficiencies.
Exciting times ahead as blockchain helps propel healthcare forward into a more patient-focused, proactive and collaborative data-driven future!
Conclusion
Blockchain has the potential to transform data privacy and security in the healthcare industry. By offering immutable records, cryptographic security, access controls and audit trails, blockchain solutions can greatly improve protection of sensitive patient data.
To unlock the benefits, healthcare organizations should start with limited pilots focused on use cases like health records and identity management. With the right strategic approach, blockchain could prevent data breaches and unauthorized access at scale across the healthcare ecosystem. While challenges exist, the need and opportunity are great for blockchain innovation to secure healthcare in the digital age.
Also Read:
- Blockchain in the Government Sector
- The Future of Blockchain Technology
- Blockchain in the Supply Chain Industry
Frequently Asked Question (FAQs)
What is blockchain technology?
Blockchain technology is a decentralized, distributed public ledger that records transactions permanently, securely and in a transparent manner across a peer-to-peer network. Some key characteristics of blockchain include:
- Decentralization – No single entity controls the network. It is managed by a cluster of computers.
- Transparency – All parties on the network can view and verify the transactions.
- Immutability – Once data is recorded on the blockchain, it is extremely difficult to change it retroactively.
- Security – Data is encrypted and spread across a network of computers instead of a single server. This makes hacking very difficult.
The first major application of blockchain technology was the Bitcoin cryptocurrency. However, blockchain also lends itself well for several other uses like sharing sensitive data securely across organizations, which is very relevant for the healthcare industry.
How can blockchain be used to improve healthcare data security and privacy?
Blockchain can be used to improve healthcare data security and privacy in a number of ways, including:
- Decentralized storage: Blockchain stores data on a decentralized network of computers, which makes it more difficult to hack or tamper with.
- Encryption: Blockchain data is encrypted, which means that it can only be accessed by authorized users.
- Audit trail: Blockchain provides a complete audit trail of all transactions, which makes it easier to track down any unauthorized access or use of data.
- Patient control: Blockchain can be used to give patients more control over their own data. For example, patients could use blockchain to manage their own electronic health records (EHRs) and choose who to share their data with.
What are the benefits of using blockchain to improve healthcare data security and privacy?
The benefits of using blockchain to improve healthcare data security and privacy include:
- Reduced risk of data breaches: Blockchain’s decentralized storage and encryption make it much more difficult to hack or tamper with data. This can help to reduce the risk of data breaches, which can be costly and damaging to healthcare organizations.
- Improved patient trust: Patients are more likely to trust healthcare organizations that use blockchain to protect their data. This can lead to improved patient engagement and satisfaction.
- Enhanced compliance: Blockchain can help healthcare organizations to comply with data privacy regulations, such as the Health Insurance Portability and Accountability Act (HIPAA).
- Reduced administrative costs: Blockchain can help to automate and streamline many administrative tasks, such as patient consent and data sharing. This can reduce costs and improve efficiency for healthcare organizations.
What are the challenges of implementing blockchain in healthcare?
Some of the challenges of implementing blockchain in healthcare include:
- Lack of awareness and expertise: Many healthcare professionals and organizations are not yet aware of the benefits of blockchain or how to implement it. This can make it difficult to get buy-in for blockchain projects.
- Regulatory uncertainty: The regulatory landscape for blockchain is still evolving, which can create uncertainty for healthcare organizations that are considering implementing blockchain solutions.
- Technical challenges: Implementing blockchain can be technically complex and expensive. This can be a challenge for healthcare organizations with limited resources.
How can healthcare organizations overcome these challenges?
Healthcare organizations can overcome the challenges of implementing blockchain by:
- Educating healthcare professionals and staff about the benefits of blockchain: Healthcare organizations can provide training and resources to help healthcare professionals and staff understand the potential of blockchain and how it can be used to improve healthcare data security and privacy.
- Working with the private sector to develop blockchain solutions: Healthcare organizations can partner with the private sector to develop and implement blockchain solutions for healthcare data security and privacy. This can help to accelerate the adoption of blockchain in healthcare.
- Creating a clear regulatory framework for blockchain: Healthcare organizations can work with regulators to develop a clear and supportive regulatory framework for blockchain. This will help to reduce uncertainty and encourage healthcare organizations to invest in blockchain solutions.
- Investing in blockchain research and development: Healthcare organizations can invest in blockchain research and development to help solve the technical challenges of implementing blockchain. This will help to make blockchain more accessible and affordable for healthcare organizations.
