Blockchain technology has received great attention in recent years for its potential to transform Healthcare.
Is this all hype, or can blockchain technology for Healthcare make a real difference?
This is more than just a fad, as big companies like IBM, Microsoft, and Google have invested in research on blockchain technology for the healthcare sector.
Globally, the Healthcare Industry is a vast market. Each day, we witness the launch of a trend to transform the face of the Healthcare industry. Blockchain, in particular, is one of the most cutting-edge technologies.
It has brought the healthcare sector up to date.
Guardtime and the Estonian government eHealth foundation have partnered to securely store all medical records in a decentralized, secure platform.
It allows doctors to access patient records anywhere easily. The blockchain market in Healthcare is projected to grow at a CAGR of 76.30% from 2021-2028.
This blog will examine how blockchain technology can revolutionize Healthcare. In this blog post, well discuss some blockchain applications in Healthcare and the challenges to overcome for blockchain technology to become widely accepted in Healthcare.
Lets begin!
Blockchain and Healthcare: What Is it?
Healthcare is a complex industry with many stakeholders in patient care. This includes doctors, hospitals, and insurance companies.
Blockchain technology can streamline communication among all these parties and make it easier for them to share information critical to patient health.
Blockchain for Healthcare, for example, is being used to build a decentralized, secure platform to store medical records.
It gives the patient full control of their data. It allows medical professionals to access medical records on blockchain from any location easily.
In the past, several instances of medically sensitive data were stolen or hacked. It reported that in 2022, more than 58.4 million patient records would have been compromised.
WHO reports that 37 percent of the medicines sold in Latin America, Africa, and Asia are counterfeit.
These high figures call for various measures to assist the healthcare sector in overcoming these issues and finding solutions to put them to an end.
Blockchain technology can be used in the healthcare industry to reduce fraud risks, improve transparency, and make Healthcare more efficient.
Blockchain Technology and the Healthcare Industry: Current Market Status
- North America and Asia-Pacific are estimated to hold over 65% market share in 2035.
Over the next few years, Europes market will grow faster than other regions.
- In 2022, biopharmaceutical and medical device companies held the highest market share by end-user, with over 40%. The reason for this is the large R&D budgets of these companies, their need to ensure data interoperability and exchange, and the huge amounts of data they manage in areas like drug development and discovery.
- The blockchain market, which focuses on clinical trials and drug discovery, is expected to grow by 22% annually between 2023-2035.
- Blockchain technology will account for over 27% of Healthcares market share by 2023.
- By 2035, the pharmaceutical industries and academic institutes are expected to account for around 60% of market shares. The market for hospitals will grow faster in the future.
- According to research, in July 2022, it was predicted that the pharmacy service profit pools would grow by a CAGR of 3 percent from 2021-2025.
We now know the state of the blockchain in the health industry. Now lets learn about the benefits of blockchain technology in Healthcare.
Blockchain in Healthcare: How it is Transforming Industry
Blockchain technology has several advantages for the healthcare sector, such as data security and monitoring. This section will cover some of the most important benefits and how this technology can be applied to the healthcare industry.
1. Improved Data Security
Blockchain technology is a distributed, secure database that allows healthcare data to be managed transparently and securely.
Blockchain technology can solve many of its most challenging issues when applied to the healthcare industry. These include data breaches, interoperability problems, and fraud.
Cryptography is used to protect patient information. The blocks in the blockchain are encrypted with complex mathematical algorithms and linked using cryptographic hashes to create an unbreakable, resistant chain.
Blockchain is a system that allows for the transparent tracking of data and its auditing. The network of nodes records and verifies every transaction on the blockchain.
Transaction history cant be changed or removed. The audit trail is visible to regulators and healthcare providers. It can be used as a tool for fraud prevention and system security.
Blockchain technology is used in the healthcare industry to store patient data in a decentralized network rather than on one central server.
It is much harder for hackers to access or alter medical data. Blockchain also allows different healthcare providers to exchange data while maintaining patient privacy.
Blockchain data is protected, and only authorized users can access it. Blockchain can also help reduce fraud and corrupt practices in the healthcare sector by creating an audit trail for all transactions.
2. 24-Hour Data Monitoring
In the healthcare industry, continuous data monitoring is an essential criterion for optimizing and managing electronic medical records.
Every day, a large number of lives are at risk. Even a small margin of error could have disastrous consequences.
All information relating to a persons health, from blood pressure measurements to prescriptions by doctors, must be tracked and accessible 24/7.
However, The existing healthcare infrastructure can only sometimes offer this high level of availability due to issues such as data breaches and interoperability.
Blockchain can help. Due to its distributed nature, this technology can provide data 24/7 and improve the management of electronic health records.
Blockchain can also help solve interoperability issues by creating a standard platform to share data between healthcare providers.
3. Improved Clinical Trials
According to a recent report, the global market for clinical trials was estimated at USD 38.7 Billion in 2021, and it is expected to reach USD 52.0 Billion by 2026 with a 6.1% CAGR.
Several factors, including the increasing demand for R&D outsourcing, drug commercialization, and increased clinical trials, drive this markets growth.
The clinical trial process can be long and complex, with many stakeholders. Inefficiencies and delays can negatively impact clinical trial success.
Often, data from clinical trials is siloed and difficult to exchange.
The blockchain in Healthcare can help to solve these issues by offering a safe and transparent method to manage and store clinical trial data.
Each step in the clinical trial would be documented on blockchain. This makes it easier to identify and track errors. Blockchain could also be used to confirm the identities of doctors and patients so that only those with authorization have access to data from clinical trials.
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4. Improved Drug Safety
The healthcare industry faces a serious problem with adverse drug reactions. Each year, they are the cause of thousands of hospitalizations.
The cost to treat adverse drug reactions is estimated at billions of dollars annually.
Blockchain technology can be used as a database to trace the origin of drugs along the entire supply chain. Early detection of adulterated or counterfeit drugs is possible.
The blockchain is used to track patient outcomes, allowing for early detection and prevention of adverse effects.
Blockchain technology allows the creation of a private, encrypted network that can be used to track and trace events within pharmaceutical supply chains.
It also provides timestamped records for all transactions. Each drug and ingredient shipped from or to authorized stakeholders at every transfer point has been authenticated, and it displays integrity, transparency, and security.
This process can minimize impediments to the supply chain of drugs, empower collaboration between stakeholders who need to be more trustworthy and implement a drug tracking system that is reliable and unassailable.
Blockchain technology can transform Healthcare by improving drug safety.
5. Smart Contracts
Blockchain smart contracts can streamline a variety of processes in the healthcare sector. They could, for example, be used to automate the processing of insurance claims, confirm eligibility for benefits, and schedule appointments.
Smart contracts can also be used to manage patient records and data so that confidential information is only accessible to authorized parties.
6. Claims and Billing Management
Claim and billing management refers to the section of the process that involves filing and processing medical claims related to the diagnosis, medication, and treatment of patients.
Medical files have been compromised several times, leading to theft and fraud.
Blockchain technology makes it simple to eradicate these cases. It records medical data, stores it on an open ledger, and ensures that changes made to the information are visible to everyone.
Blockchain has many other benefits, including reducing medical mistakes, improving public health, and more.
Lets look at some examples of blockchain applications in the healthcare industry.
Blockchain Healthcare Use Cases
Startups implement some of the healthcare blockchain applications.
However, others are piloted to protect their businesses by larger organizations. We will examine some of the real-world blockchain applications in Healthcare.
Drug Traceability
The ability to trace a product from the manufacturer to the patient is called drug tracing. Blockchain technology can transform the drug-traceability process by creating an unalterable record of product movement.
Most drug tracking systems currently rely upon a central database which can be altered or compromised.
Blockchain-based systems would allow for a decentralized and tamperproof recording of drug product movement. The regulators could then quickly detect and recall fake products.
When used with artificial intelligence, the Internet of Things, and blockchain, blockchain can track drug products in real time. It would be possible to respond more efficiently and effectively during drug shortages.
Walmart, IBM, Merck, and KPMG collaborated on a pilot blockchain solution that would help track pharmaceuticals throughout the supply chain.
The project was designed to verify that all drugs were genuine and met quality standards.
Electronic Health Records
Electronic health records are another important use of blockchain in Healthcare. These records can enhance patient care, lower costs, and save lives.
Electronic health records have their challenges. Data security is one of the biggest challenges. At the moment, electronic health records are kept on central databases, which are susceptible to data breaches and hacks.
Data about patients is at risk. Blockchain in Healthcare can help to solve this problem by offering a secure, decentralized way of storing electronic health records.
Blockchain technology allows patients to access their medical records while ensuring that only authorized people can view them. Blockchain healthcare startups have already started developing blockchain-based solutions for electronic health records.
Medicalchain, a blockchain-based healthcare startup based in the UK, has developed a secure platform to store and exchange health data.
Patientory is another example, as it is developing a blockchain electronic health records solution that allows users to control their health.
Blood Plasma Supply Chain
Blockchain technology to improve Healthcare can streamline plasma supply chains and provide accurate information to all parties.
The plasma derivatives used in many treatments are essential. However, the supply chain can be complex, with multiple hospitals and blood banks worldwide involved.
Unfortunately, inaccuracies or inefficiencies in this system can lead to shortages when plasma is most needed. According to a recent report, it is predicted that the market for plasma supply chains will reach $15.5 billion in 2024.
A shortage of plasma on the market could have grave consequences, including increased mortality rates.
Blockchain has the potential to resolve these issues by offering a decentralized platform on which all parties can exchange information and track plasma shipments in real-time.
Blockchain could ensure patients have constant access to life-saving treatments. Canadian Blood Services has collaborated with EY Canada to use blockchain technology to ensure real-time visibility and traceability for blood products across the entire system.
Prescription Drug Monitoring
The use of blockchain in the healthcare industry extends to monitoring prescription drugs. In the US, it is estimated that more than 6 percent of adults aged 12 or older used prescription medications in the past year.
Blockchain technology can help to solve this issue by offering a safe and secure way to track prescribed drugs.
Each time a drug prescription is filled, the blockchain creates and stores a log. The authorities could then track prescription drug movements and detect patterns of abuse.
Blockchain could also be used to confirm the identities of doctors and patients so that only authorized people can access prescribed drugs.
BlockIdx is a startup working on an electronic prescription solution based on blockchain. The platform allows patients to store and manage prescriptions securely.
BlockMedx would allow pharmacists to verify prescription authenticity and track prescription drug movement.
Verification of Medical Staff Credentials
Credentialing of medical staff is another important use of blockchain technology in Healthcare. Statista reports that there are over 1,073,616 physicians licensed in the US.
It can be challenging to check the credentials of all medical professionals with such a high number.
Blockchain technology is used to validate the credentials of medical personnel by an increasing number of organizations.
Credentialing using blockchain technology allows medical organizations to quickly and safely verify their staffs experience and qualifications.
Blockchain also provides permanent credentials records, useful for tracking medical personnels career histories.
Credentials verified using blockchain technology are essential for ensuring quality care within healthcare organizations.
Breakthrough in Genomics
It is widely acknowledged that genomics can improve health care. According to Emergent Research, the global market for blockchain-based genomics is estimated to be worth USD 1,258,3 million by 2027.
Data sharing is a major challenge in genomics. Patients do not want to divulge their genetic data due to privacy issues.
Blockchain technology has been used to build secure, decentralized platforms for sharing genomic data. Patients can share genomic data while still maintaining full control of who sees their data.
Nebula Genomics, a leader in this field, is using blockchain technology to build a platform decentralized for sharing genomic data.
The company is building a huge genetic database that can be used in medical research. The company lets patients share genomic data with scientists in exchange for compensation.
EncrypGen is another company that uses blockchain technology to secure genomic data. EncrypGens platform lets patients control who can access their genomic data and are compensated for doing so.
Supply Chain Management
Global medical services and product supply chains are essential to the healthcare industry. Blockchain applications are helping to solve supply chain issues in the healthcare industry.
RFID (electronic products code information service) and EPCIS is used to secure the drug supply chain.
This technology ensures that active ingredients for the creation of drugs comply with medical standards. Blockchain can also track the origin of counterfeit drugs and devices.
To solve this problem, several companies have developed blockchain-based healthcare solutions.
Chronicled is a US-based firm that developed a tracking platform for medical supplies using blockchain technology and the Internet of Things.
Chronicled allows pharmaceutical companies, manufacturers, and distributors to monitor the flow of medical products in real time.
Iot Security for Remote Monitoring
The healthcare industry relies increasingly on the Internet of Things to monitor patients remotely. Wearable sensors, such as IoT, can gather various data, including blood pressure, temperature, and heart rate.
These data are then sent to a central place where health professionals can monitor them.
IoT devices, however, are only sometimes secure. They can be vulnerable to data breaches and hacking. Hackers could access sensitive patient data, which is of great concern to the healthcare sector.
This problem can be solved by using blockchain in Healthcare. It provides a safe way to share and store data.
Blockchain can also be used to build a secure IoT network. The IOTA platform, for example, is intended to create a safe environment for IoT devices.
IOTA uses blockchain to create an unalterable data ledger. The ledger is used to store data collected from IoT devices and track IoT device movement. Lets examine some of these challenges before seeing blockchain and Healthcare go together.
Blockchain Technology and Healthcare Industries: Challenges
Despite its potential, there are many challenges to implementing blockchain technology in the healthcare sector.
Below are a few of the challenges.
HIPAA Compliance and Data Privacy Regulations
HIPAA is the Health Insurance Portability and Accountability Act. This US law sets strict rules on how patient data can be shared and used.
Blockchain technology can help healthcare organizations comply with HIPAA regulations and other privacy laws. It still needs to be clear how to use blockchain technology to comply with HIPAA and other data privacy regulations.
Data Mutability
Blockchain does not permit changes after a data piece has been uploaded. This is both a blessing and a curse. Immutability is a good thing, but it also limits scalability.
In the short term, the solution for this issue of immutability would be to extend the current architecture by enabling recording-only edits.
Data size
The amount of data generated by healthcare providers is huge. The block size limitation can cause these numbers to exceed the data stored on a standard blockchain architecture easily.
A well-planned architectural solution will be obvious with the components of the system, as it stores the off-chain and on-chain data, after careful study, based on the types of data that make sense for the domains.
Combining the off-chain with the on-chain data, either in the RDBMS or the No-SQL database of the IPFS system, can help solve the problem.
Blockchain in Healthcare is a growing trend in the digital age. Healthcare organizations must keep pace with these trends. Blockchain technology can transform the healthcare industry.
Lets look at the future of Blockchain technology in Healthcare.
How Will Blockchain Affect Healthcare in the Future?
Next year, or the next one either, technology wont change Healthcare from its very core. The tech revolution will eventually become a revolution in Healthcare.
Blockchain technology is maturing and being adopted in the healthcare sector. Blockchain has now entered its first phase, as seen in the above illustration. Several healthcare apps are using the technology to improve the process of putting patients in control of their data.
After being adopted during Phase 1, the technology is now appearing in Phase 2, where its now being standardized - an instance of this could be its integration into the healthcare supply chains.
Next, blockchain will have to be adopted on a larger scale than it is now. The technology does not have any blockchain-based healthcare applications shortly.
However, when medical boards worldwide accept the technology and set guidelines for it, we know that this technology is at its third phase of maturity.
In the last, or Phase 4, all business processes will be optimized and integrated. This will happen when the Industry and its stakeholders transition to a more decentralized environment.
Blockchain healthcare companies who have adopted technology to streamline the healthcare sector on their terms are a testament to the fact that blockchain has paved the way for the decentralization of the Industry.
We anticipate that more healthcare organizations will adopt blockchain technology to store and exchange data.
Wrapping Up
Blockchain in Healthcare offers unique benefits, including creating immutable and secure information, reducing complexity, and enabling collaboration without trust.
This was the end! Blockchain has many potential uses in various industries, including finance, supply-chain management, and Healthcare.
Blockchain can transform how we manage, store, and share information by providing a transparent and secure system of storing data.
Well begin our journey together, from the first wave to the last handshake to creating excellence! Blockchain has yet to bring about a revolution in Healthcare, but it will.
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