Blockchain, as a digital ledger, is gaining a lot of attention and traction recently with various industries gradually adopting the technology. But why has it become so popular? Let’s decode it.
What is blockchain?
A blockchain is a distributed, decentralized node network that stores data in blocks linked to one another. Each block contains some information such as transaction information and a unique hash. This cutting-edge technology, popularly known as the backbone of cryptocurrencies, allows transactions from around the world. It gives users the same rights and no third parties are involved.
The core features that make blockchain stand out include decentralization, immutability, transparency, and automation – features that can resolve data security, interoperability, and accessibility challenges in a variety of industries.
Blockchain Trend in the Healthcare Industry
Blockchain technology in healthcare can provide a new model for health information exchange by making electronic health records more efficient, disintermediate, and secure leading to its increased adoption. In fact, according to Mordor Intelligence, the blockchain market in the healthcare industry is expected to grow from USD 3.61 billion in 2024 to USD 29.76 billion by 2029, at a CAGR of 52.48% during the forecast period (2024-2029).
This blog explores major use cases of blockchain in the healthcare industry and how it enhances the day-to-day operations of an organization.
Use Cases of Blockchain in the Healthcare Industry
Blockchain has several applications in healthcare, from enhancing patient data management to claims processing. Here are the top use cases of blockchain in the healthcare industry.
- Patient data management
- Clinical trials
- Secure data encryption
- Drug verification
- Claims processing
- Integration with wearables IoT devices
- Supply chain management
- Provider Data Management
- Medical staff credential verification
- Medical Paperwork Management
- Patient Consent Management
- Genomics Research
Let’s dive deeper into the benefits of blockchain in healthcare.
- Patient data management
Patient data management involves the secure handling, storage, and sharing of patient health information. The effective management of this crucial data enables healthcare providers with accurate and up-to-date patient records, which is essential for delivering quality care. With the increasing complexity of healthcare systems and the growing volume of patient data, innovative solutions are needed to address challenges related to data security, accessibility, and interoperability.
Cohesive blockchain technology can effectively be used to manage shared patient data. Blockchain can contain references to the patient data, while smart contracts will define and enforce access rules to this data. This ensures that only authorized individuals can access patient information.
One example of blockchain technology use cases in healthcare on a day-to-day basis is when a patient visits their primary care physician for a check-up and later sees a specialist for a specific condition. Instead of separate records in different systems, blockchain securely connects these visits into a single, tamper-proof ledger. This unified record ensures accurate, up-to-date information for all healthcare providers involved with enhancing patient safety.
- Clinical Trials
Clinical trials are essential research studies conducted to evaluate the safety and effectiveness of medical interventions, such as drugs, medical devices, or treatments. These trials follow a strict protocol and are conducted in phases to ensure rigorous testing and accurate results.
Blockchain technology has the potential to enhance the reliability of clinical trials by providing a secure and transparent way to track and time-stamp each phase of the trial process. This includes trial protocol adherence, patient enrolment, data collection, trial monitoring, and data management and analysis. Using blockchain reduces unnecessary data capture, minimizes reporting errors, and prevents data manipulation or selective reporting which maintains the integrity and accuracy of trial data for more trustworthy results.
- Secure Data Encryption
Blockchain technology in healthcare primarily aims to prevent data breaches, addressing one of the biggest fears of healthcare network users. They worry not only about payment methods or social security numbers but also about keeping their medication information private. Blockchain offers a robust security standard by recording and encrypting information and anchoring it to the public blockchain, ensuring secure data transfer.
The data encryption method in the blockchain is almost hacker-proof. It is particularly beneficial in the evolving field of telemedicine, where HIPAA mandates safe data transfer and communication methods. This technology reassures doctors and patients, who are enthusiastic about its potential to protect sensitive information.
- Drug Verifications
Fake drugs pose a serious threat to the healthcare system, as they are both widespread and potentially dangerous. Despite regulations in the US aimed at controlling drug counterfeiting, these measures are not entirely foolproof. Illegitimate drugs are sometimes repackaged with fake labels after expiration, leading to severe health risks.
Blockchain technology has the characteristics to provide visibility, verification, and validation to the drug supply chain and counter this menace. Additionally, blockchain can provide a tamper-proof record of all drug transactions, making it easier to trace any issues or discrepancies. The pharmaceutical company that owns the drug IP, suppliers, warehouses, quality controls, distributors, retailers, and any other stakeholders can participate in a blockchain.
- Claim Processing
Claim processing in the healthcare industry verifies insurance coverage among payers, patients, and healthcare providers. This typically requires a significant amount of administrative work to ensure accuracy and compliance.
With blockchain, insurance coverage verification among payers, patients, and healthcare providers could become seamless. Blockchain builds trusted relationships between all participants by storing transactions and contracts on a shared ledger. This would allow a consistent, automatic contract execution environment leading to a sharp reduction in the cost of administration.
- Integration with Wearable IoT Devices
One of the most remarkable abilities of blockchain innovations is its usage with wearable Internet of Things devices. It allows for better health records monitoring by both patients and doctors. The seamless connectivity provided by IoT devices enhances real-time data transmission, enabling prompt interventions and personalized healthcare approaches.
Blockchain can provide an easily authenticated, secure platform for integrating data within wearables such as fitness, health, or activity tracker devices. The doctors and the patients can reach this secured regularly updated data through remote patient monitoring that allows more easily tracking of the changes or patients’ progress.
- Supply Chain Management
Supply chain management involves the coordination and oversight of the flow of goods, information, and finances as they move from supplier to manufacturer to wholesaler to retailer to consumer. One of the prominent challenges in this process is the lack of transparency and integrity across all the parties involved.
Based on the basic premise of shared ledger using blockchain to manage supply chain data, blockchain has the potential to make supply chain management transparent to all parties involved and allow them to monitor the progress of an asset through supply chain touchpoints. With transactions in blockchain inherently immutable, it removes any chance of data compromise thus making the entire system fraud-resistant.
- Provider Data Management
Provider data management poses challenges in maintaining accurate and up-to-date credentials and licenses for healthcare professionals. Traditional methods often rely on third-party validators, leading to delays and potential inaccuracies in the verification process.
With blockchain infrastructure, providers can solve data management challenges by self-validation and updates of provider credentials and licenses. Blockchain’s decentralized system establishes a network where all parties’ data is shared and linked to its originating source. This eliminates the need for intermediaries, streamlines the verification process, and ensures the accuracy and integrity of provider data within the healthcare ecosystem.
- Medical staff credential verification
Medical staff credentialing verification is essential for healthcare organizations to maintain quality standards, ensure patient safety, and comply with regulatory requirements. It helps healthcare facilities to hire qualified professionals, prevent fraud and misrepresentation, and build trust with patients and regulatory bodies.
Blockchain accelerates the credentialing process for healthcare organizations during staff hiring, reducing administrative delays. It provides a secure ledger that allows real-time access to verified credentials that eliminates the need for repetition. It presents an opportunity for medical institutions, insurers, and healthcare providers to monetize their vast repository of credentials data on both past and existing staff. This allows them to unlock additional revenue streams while leveraging existing resources effectively. Blockchain also provides transparency and reassurance for partners, such as organizations subcontracting locum tenens or engaging in emerging virtual health delivery models. Patients can access information regarding medical staff experience.
- Medical Paperwork Management
Another area where blockchain technology proves beneficial is the management of medical paperwork.
Hospitals and healthcare providers can reduce the paperwork required from patients and doctors. A paper-based system can be replaced by a computerized one, it is better for storage purposes, reduces costs and time spent on routine tasks, and prevents doctors’ burnout.
Additionally, blockchain simplifies tracking insurance transactions, ensuring nothing gets misplaced. Providers and patients no longer need to provide additional copies of transactions to insurance companies, which is a relief for everyone involved.
- Patient Consent Management
Patient consent management is crucial for protecting patient privacy and maintaining compliance with legal regulations. It allows patients to have control over who can access and use their sensitive medical information, safeguarding their personal health data from unauthorized use.
Blockchain technology impacts this process by providing structured data ownership through integrated privacy and permission layers on platforms like Ethereum. Although patients cannot alter or delete medical data added by doctors, they retain control over who can view their information. This system allows patients to selectively share their full medical records with specialists while providing only non-identifiable data to researchers or broader healthcare organizations. This ensures both enhanced privacy and tailored data sharing according to patient preferences.
- Genomics Research
Blockchain technology is transforming genomic research by improving how genetic data is handled, shared, and analyzed. This technology has great potential for personalized medicine and understanding human biology.
One major challenge in genomic research is managing large amounts of sensitive data while ensuring privacy and accessibility for legitimate research. Blockchain encrypts genetic data keeping it immutable and tamper-proof. Researchers can trust the accuracy of the data, and participants maintain ownership and control over their genetic information. They can share their data confidently, knowing their privacy is protected
A Glance at the Future with Blockchain Innovation
One of the most exciting aspects of blockchain technology is its potential for growth and modularity. Although its initial implementation will encounter the same limitations as current technology, blockchain’s open and flexible nature will foster industry-wide advancements over the coming years.
BIS Research has projected that integrating blockchain into healthcare could save over $100 billion annually by 2025. These savings would come from reductions in IT costs, operational expenses, support functions, personnel costs, and health data breaches.
While many innovative blockchain solutions have already been developed by pioneering companies globally, this is just the beginning.
Conclusion
The transformative power of blockchain technology use cases in healthcare has the potential to provide technological solutions to many challenges, including health data interoperability, claim adjudication and payment process automation, integrity, security, supply chain management, and drug verification. Applying blockchain can also save significant time and money for healthcare providers and patients.
For an elaborate understanding of the cases discussed above, explore our whitepaper on blockchain in the healthcare industry.
To get a holistic understanding of data-related solutions check out our website.
We at Nalashaa Solutions can help you resolve organizational challenges with robust IT services. Our 13+ years of experience in the healthcare domain will help you scale the tides of disconnected workflows with ease. Get in touch to know more.
Santosh Kumar
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