What is the Advantage of Using Blockchain Tech in Healthcare?

The healthcare sector faces numerous issues when it comes to data storage, sharing, and verification. Patient data exists in isolated silos and doctors cannot access it when needed, while hackers seem to be able to take advantage with relative ease. Patients don’t feel like they own their health information. Counterfeit drugs are flooding the market as no one can verify their origins. Are traditional data management practices becoming obsolete? Even though blockchain technology has emerged in the financial sector, blockchain use cases in healthcare are gaining traction, too. The global medical blockchain market is , rising at a CAGR of 35% from 2021. Hospitals and other medical facilities are tapping into to enhance their data-related practices. expected to reach $55.83 billion by 2026 blockchain development services So, how blockchain works in healthcare? And which challenges could you expect while implementing the technology in the medical sector? What is Blockchain, and How Does it Benefit Healthcare? Blockchain is a decentralized distributed system that generates and stores data. When one device on a blockchain performs a transaction, all other devices generate identical blocks reflecting this action. Similarly, when blockchain data is manipulated in any way, a block is created to record this information so that any change can be easily verified and tracked back to its source. You can learn more about on our blog. blockchain and its applications in a dedicated article How can blockchain be used in healthcare? This technology incorporates advanced cryptography mechanisms to enhance data security. With blockchain’s permission system, it gives data ownership back to the individuals, and with its transparency, it facilitates clinical trials by documenting and time stamping all the details. Furthermore, it offers unique contract management and payment capabilities. Advantages of Blockchain in Healthcare Here are the main benefits blockchain technology brings to different healthcare actors: Blockchain for healthcare organizations: Improves decision-making as blockchain allows several doctors from different locations to view the same data in real-time. Transforms patient medical records to a decentralized system that can’t be tampered with Speeds up medical credentialing Blockchain for Patients: Empowers patients to assume ownership of their medical data Supports consent mechanisms prohibiting healthcare providers from accessing information without patient permission Enables patients to participate in research and otherwise monetize their data without intermediaries Collects and stores data from wearable devices in a secure manner Blockchain for Pharmaceutics: Helps to recruit participants for clinical trials Supports reliable and auditable documentation of clinical trials with its immutable records Allows spotting counterfeit drugs Blockchain for Insurance: Speeds up confirmation obtaining process Unlocks the opportunity for insurers to draft and manage agreements using smart contracts Cuts down costs by eliminating intermediaries Disadvantages of Blockchain in Healthcare: There are several disadvantages to adopting blockchain in healthcare stemming from the nature of this technology: As the number of blocks grows, the transaction time increases, causing delays. Inability to permanently delete records. The network simply creates more blocks that reflect the invalidation of existing records. For this technology to function, every involved organization needs to be on board with it. Potential problems with large patient files, such as MRI scans. High planning, developing, and maintenance costs Blockchain in Healthcare: Use Cases Here are seven of the most prominent blockchain technology applications in healthcare: Transparent supply chain Faster medical credentialing Patient-centered EHRs Manageable medical trials Enhanced security Commitments enforced via smart contracts Genomic research Blockchain Increases Healthcare Supply Chain Transparency Counterfeit drugs are a persistent problem. The World Health Organization (WHO) estimates that in developed countries are not legitimate. This number increases in the developing countries to reach almost 10%. Proving this point, the Drug Enforcement Administration (DEA) . The agency reports this number is higher than it was in two previous years combined. up to 1% of all medications available for purchase captured over 9.5 million fake medications in the US in 2021 One of blockchain’s use cases in healthcare is that it allows customers to track the products at every stage, including manufacturing, wholesale, and shipping to make sure the items are legitimate. This is crucial for both drugs and medical devices. Once a ledger is created for a drug, it records the point of origin, a laboratory for example. Since then, every manipulation on this drug is documented. Blockchain can incorporate rather extensive information, such as labor costs and how much waste was emitted during manufacturing and transportation. is an example of a blockchain protocol that healthcare organizations can use to verify information on prescription drugs’ supply chain. This includes expiration dates, manufacturers, etc. MediLedger also allows different parties to exchange secure peer-to-peer messages. Many prominent healthcare providers, such as Bayer, Pfizer, and Cardinal Health use this network. MediLedger In another example, Paris-based Blockpharma built a solution that scans medications’ supply chain and verifies it across all points of shipment. The company’s app allows patients to verify the legitimacy of their purchase. Blockpharma worldwide. is believed to intercept 15% of counterfeit drugs Blockchain Speeds up Medical Credentialing Verifying credentials – training, skills, medical licenses, and education – is a tedious process that is typically performed via phone and email and can take up to four and even six months to complete. The Council for Affordable Quality Healthcare reports that payers to maintain a comprehensive healthcare provider database. Blockchain technology can offer a faster and more reliable substitute that doesn’t rely on direct human references. spend almost $2 billion per year Blockchain allows healthcare organizations to log and monitor the credentials of their staff. This arrangement streamlines the hiring process and improves transparency and trust between subcontractors, hospitals, and patients. Additionally, blockchain records allow incremental updates when professionals need to add qualifications. is a healthcare credentialing startup founded by two physicians. It uses blockchain to verify primary source credentialing documents with the aim to reduce time on new hires’ background check. Carilion Clinic tested ArchiveCore software against their typical hiring process for 17 staff members and was amazed to discover that . ArchiveCore they could have saved $1.2 million in lost revenue Blockchain Enables Patient-Centric EHRs Sharing medical data is a sensitive and highly-regulated task. A survey conducted among physicians and nurses in the US that patients’ safety is at risk when exchanging their health information among different departments. reveals that 74% of the respondents believe One of the most popular blockchain use cases in healthcare is to offer a comprehensive overview of patients’ records and manage data sharing consent. Such systems give patients full control over their records – they are notified when their data is updated, and they can share full or partial records with doctors, researchers, and other parties. Patients can even set a time limit on how long their records are visible to a particular third party. Insurers can use this system to validate confirmations with patients directly, without intermediaries. One application of the technology comes from . This company helps healthcare providers integrate their electronic medical records with a blockchain-powered platform. MedicalChain software can be used to develop other healthcare solutions, such as virtual consultations and marketplaces that enable patients to monetize their anonymized medical data. MedicalChain Blockchain Facilitates Clinical Trials ClinicalTrials.gov reveals that drug development . Clinical trials produce large amounts of data and involve many people, such as sponsors, study subjects, doctors, researchers, drug manufacturers, etc. Hence, mistakes can occur easily and there is room for intentional falsification. Finding and recruiting participants is another issue. A recent report shows that participated in clinical trials. Also, trails’ information is typically stored in centralized databases, making it challenging to share among all stakeholders. costs around $350 billion globally per year only 8% of cancer patients Another blockchain use case in healthcare is to make clinical trials more transparent, allowing researchers to identify studies with questionable protocols and prevent their publication. With this technology, all clinical trial documents can be time-stamped and securely stored. Blockchain records include project proposals, surveys, research design, blood tests, patient consent forms, etc. Moreover, this technology allows participants in dispersed geographical locations to view the data simultaneously in real-time, which is crucial for trial decision-making. Additionally, blockchain can help manage clinical trials’ finances. For example, the German pharma company Boehringer Ingelheim teamed up with IBM to implement a blockchain-based bookkeeping system for its trials. Delayed payment of trials’ participants is another issue. It typically takes several months for those people to receive income. Bloqcube specializes in blockchain-powered clinical trial software and it believes that working with central bank digital currencies can significantly speed up the payment process, allowing doctors and patients to receive compensation a few minutes after performing a task. Blockchain Enhances Security Health data is mostly stored on centralized databases which cannot offer adequate protection against theft and breaches. According to HIPAA Journal, a total of across 686 healthcare data breaches. 44,993,618 medical records were compromised in 2021 Blockchain can facilitate secure health data storage and sharing. For example, , headquartered in California, operates as network-as-a-service and uses blockchain to offer a set of policies, configure data layers, and verify health data source and destination in real time. Akiri Blockchain also supports encryption. If healthcare providers want to access patient information, they will need the corresponding public key. Research shows that the protected health information (PHI) residing on their workstations. , a major US-based test and vaccine verification platform resorts to blockchain to encrypt its data and further anonymizes it. 63% of healthcare organizations fail to encrypt Testd Another security-related use case of blockchain in healthcare is supporting wearable medical devices. This technology facilitates recording and safe transmission of IoT data from devices to healthcare providers. It can protect the data from unauthorized tampering, block access to certain devices, and shut down compromised nodes. Blockchain Enforces Commitments VIA Smart Contracts Contract-related disputes and failure to honor contract terms is a problem in every industry. Research shows that in the medical sector, while due to reasons such as incomplete information, duplicate claims, improper registration, etc. 10% of insurance claims are disputed 17% of claims are being denied Smart contracts can offer a solution to these daunting problems. A smart contract is a piece of code deployed on a blockchain. It is set to be executed automatically when predefined conditions are met. Smart contracts help the medical sector to cut down on costs by eliminating intermediaries. This technology enables different healthcare actors, such as providers, patients, insurers, and medical device manufacturers. to authenticate themselves on the network and document contract clauses, which will be carried out automatically and will remain visible to all parties involved. For example, when a patient visits a doctor, this event will be reflected in the blockchain ledger, and the insurer will be notified. Stakeholders can turn to smart contracts to verify facts and speed up dispute resolutions. Curisium, , developed a blockchain-powered platform that supports contract management and negotiation in the healthcare sector. It allows providers and payers to participate in innovative secure contracting arrangements and find common grounds in case of a dispute. recently acquired by Philadelphia-based HealthVerity Blockchain Enables Genomic Research The costs of genomic sequencing sharply decreased nowadays, with some companies . This encourages scientists to engage in genome-related research. But where to find willing participants? And how to provide secure storage for such massive datasets? from $10,000 a few years ago to $1,000 claiming to perform this task for solely $100 Here is another blockchain use case in healthcare. This technology allows participants to store billions of genome data points, exchange them securely between interested parties, and establish ownership. The technology also supports individuals in legally monetizing their genomic information without involving intermediaries. For example, offers a blockchain-enabled DNA marketplace where participants can upload, share, search, and sell genetic data using traceable DNA tokens. EncrypGen In another instance, the Israeli biotech company demploys blockchain to facilitate genomic data exchange between data owners and researchers by using DNAtix tokens as means of payment. The company takes pride in fully anonymizing payments and contracts. DNAtix Here is what the company’s CEO, , “We are bringing a new possibility of participating in research, testing your DNA, storing your DNA, and staying anonymous. It’s the safest genetics on the planet that will be available.” Ofer Lidsky says Challenges of Blockchain in Healthcare : blockchain stores and maintains highly sensitive and regulated patient data on a network that is designed to be transparent. Healthcare organizations need to make sure they are compliant, and the risk of data exposure is minimized. Compliance with HIPAA and other data privacy regulations : medical facilities will need to evaluate the possibilities of storing enormous amounts of data without compromising heavily on the performance. Large volumes of healthcare data : we can’t maximize blockchain security, scalability, and decentralization simultaneously. One of those parameters is improved at the expense of the others. For example, if blockchain is scaled in a way that its payment system is adopted globally, the security of handling those transactions is likely to be compromised. Researchers are looking for solutions, but at the moment, this remains a relevant concern. Finding the right balance : another challenge of blockchain in healthcare is that data access is based on permissions. But what to do if a patient physically can’t give explicit consent in case of emergency? Organizations will have to come up with protocols on how to operate in this and similar situations. Access authorization : blockchain uses cryptography to secure its data. Hence, there is an issue of key management. Using the same public key for all blocks implies that all the data would be exposed if the key is compromised. On the other hand, using a different key for each block will drastically increase the costs of storing and accessing data. Private and public keys How to Proceed With Implementing Blockchain in Healthcare? As Stuart Hanson, CEO of Avaneer Health, pointed out during his interview with Healthcare IT News, blockchain is not a standalone technology that medical facilities can just plug in and solve all their issues. It is not a platform that can be added to an existing tech stack. If your organization wants to be effective in its blockchain adoption, you might need to adapt your internal processes, expand tech stacks, and help your employees and partners to shift their mindset towards a new operating mode. Moreover, organizations that want to benefit from blockchain use cases in healthcare to their full extent, will need to work together and team up with their competitors. For example, IBM and banking institutions that naturally compete against each other, such as Sentara Healthcare, Cleveland Clinic, and Aetna among others. The goal of this cooperation was to establish a governance framework that will monitor a blockchain-powered healthcare network. collaborated with healthcare organizations If you are interested in starting with blockchain implementation in the healthcare sector, it is best to consult professional . Even though deploying this technology seems complicated, with the right support, your medical facility will be able to reduce costs, improve patient care, and increase data security and transparency. healthcare software development companies Do you want to enhance your data and contract management practices with blockchain technology? ! Our healthcare experts will set you up with an existing blockchain platform and assist you with customized smart contract development. Drop ITRex a line Co-published . here

What is the Advantage of Using Blockchain Tech in Healthcare?

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