Blockchain Technology In Healthcare Sector

Blockchain technology has the potential to transform not only the financial sector but various other sectors like healthcare, agriculture, logistics, supply chain management, and many more. Blockchain technology is based on a decentralized model where information is transferred directly from source to destination with no intermediary. Transactional records are recorded on the blockchain network rather maintained by a central authority. Cryptographic techniques deployed by distributed ledger technology assures the trustless network with the utmost security and privacy. The feature of non-immutability ensures that data duplicity is next to impossible to the data maintained on the Blockchain network. In this article, we will understand how this innovative technology can overcome the challenges faced by the healthcare sector. And also about the latest inventions of Blockchain in healthcare sector 2020.

Challenges In HealthCare | Blockchain Healthcare Sector 2020

Healthcare sector is one of the most important sectors which needs continuous evolutions and development to maintain records, developing new vaccines, tracking the supply of pharmaceuticals, analyzing the data of any patient, and many more. As the countries are dedicating more of their annual budget in this sector, they need to develop this sector.

According to a report by BIS Research, if Blockchain technology will be adopted by Healthcare sector, it has the potential to save around $100-$150 billion by 2025 by reducing the costs related to the data breach, Information Technology, operations, and logistics; and also through a reduction in frauds related to counterfeiting.

Disparity of Data| Fragmented to Connected | Effective Supply Chain Management:

Pharmaceutical companies face the problem of fragmented data scattered among different companies with different data structures. At the time of drug development, information from various researches need to be collected, but the disparity of data makes the accessibility of data difficult. Also, gathering data and analyzing it all over again turns out to be a time-consuming process, leading to more problems. Data handling process in pharma needs a major shift.

Blockchain is a distributed ledger system with the capability to connect fragmented data related to healthcare research papers, clinical trials, already analyzed information, and many more just like Health Information Exchange. Blockchain can help in generating better insight and accessibility of the information.

Managing the supply chain comes with the added risks and complexity for pharma companies, which directly affect the safety of the patients. By using the transparent network of Blockchain, end to end supply can be easily traced, eliminating falsified medication. Pharma giant GlaxoSmithKline collaborated with Blockchain company Viant for tracking the supply based on a Blockchain network for an efficient pharma chain of supply.

Hurdles In Research | Improved Research Process | Eliminating Intermediaries

Pharma sector is turning competitive day by day, which leads to more centralization of researched data. Centralized databases create the difficulty for researchers and clinical trials of drugs and bar the people from sharing data.

Biotechnology is one sector of the healthcare industry which is constantly involved in developing new techniques, drugs, or treatments. If the data related to researches taking place all across the globe get systematically arranged through Blockchain technology, it would not only save the lives of many patients but can break through the research process by reducing the time in data collecting, researching, and analyzing. For instance, MIT Enigma provides the secret-sharing platform based on Blockchain to allow researchers to share the data of clinical studies with utmost privacy. With the help of Blockchain, friction because of the intermediaries can also be eliminated easily. Also, security along with privacy can be assured by Blockchain for healthcare data.

Difficulty In Bookkeeping | Handy Bookkeeping

Bookkeeping is an exercise to maintain the records of costs incurred in different processes. In the healthcare sector, research from many companies combines to finally launch any drug or vaccine. Keeping track of the cost of processes like clinical trials, chemicals used and many more, and that too of several companies is a difficult task leading to mismanagement in health expenditure.

In the Blockchain network, data related to cost incurred at every stage can be stored in a tamper-proof manner. Data can be utilized for auditable records making the treatment feasible by getting the insights from the analysis of figures associated with the costs of each process. For instance, pharma company Boehringer Ingelheim announced to integrate Blockchain in their network for reducing the complexity related to financial reporting activities.

Counterfeiting Of Medicines | Combating Counterfeiting

Some companies and groups are spoiling the healthcare industry by faking the medicines and introducing them into markets (which might end up in taking lives!). Poor manufacturing techniques, improper storage facilities, drugs stealing, and also the penetration of counterfeited drugs are a few of the major challenges of the health industry which shakes the credibility of the sector.

Maintaining and tracking the records associated with particular medicine with the help of Blockchain health informatics can not only reduce the huge loss encounter by the pharma companies due to counterfeiting of drugs but can also increase the credibility. It can make a healthy competitive environment for the manufacturers of drugs and other medical equipment.

Fragmented Data of Patient | Hassle-Free Accessibility of Medical Records

Before any treatment, a number of diagnostics, data related to medical history, and diagnosis need to be submitted. And supposedly, if the treatment of one doctor does not suit you then you have to move to another doctor or any specialist and have to submit the documents again. Centralization of data to the patient creates trouble every time the patient switch the doctor.

Blockchain medical records can help in organizing the records across the medical industry (with limited accessibility) ensuring the effective diagnosis of disease and the most efficient treatments. Blockchain can ensure the data of the patient can be easily transferred from one doctor to another in a hassle-free and tamper-proof manner. For instance, healthcare blockchain companies like 4Medica, HealthVerity, etc are deploying Blockchain to maintain the data of patients in an efficient and cost-effective manner while serving as the platform for sharing the data.

Long Process of Medical Claims | Quick Medical Claims

People invest in health insurance policies for health emergency situations. At the time of claiming them, insurance companies consume time and energy during the verification process of an insurer.

Smart contracts or digital contracts based on Blockchain network have the potential to transform the medical insurance industry. Blockchain in health insurance can help in easing the process of receiving claims and completion of transactions by drawing the contracts between hospitals or clients and insurance companies. For instance, Project Dovetail uses the smart contract platform of Intelligent Healthcare Network and TIBCO’s smart contract project for hassle-free and verifiable transactions.

Summing Up

Benefits of Blockchain in healthcare cannot be ignored and must be capitalized to revolutionize the healthcare industry. Blockchain aims to reduce the complexity and boost security of healthcare network. Several challenges are involved in implementing blockchain in healthcare 2020, but can the results outweigh the risks and challenges associated with the sector.