Blockchain technology is all about managing electronic data in a way that promotes transparency and accountability. It's like a digital ledger where everyone in a computer network can see the same information. The data entered into this ledger is verified by network members and once it's in, it can't be changed (OECD, 2020). Originally, blockchain was created for cryptocurrencies to get rid of the need for middlemen like banks and to protect against fraud and theft. This article is here to help to understand blockchain solutions better by explaining what blockchain technology is all about, its pros and cons, how it could be used in the health industry and what policy issues need to be considered when using it.
What is Blockchain?
Blockchain is a reliable technology used to monitor transactions. It acts as a digital record that secures data by linking together encrypted blocks of information. Due to its decentralized nature and immutability, blockchain has the potential to transform sectors like finance and healthcare by minimizing security threats.
In the health industry, there are transactions where having clear and unchangeable records is crucial, for example, in:
- purchasing and shipping medical supplies and drugs
- monitoring who has access to facilities, medical records
- or keep track of EHRs or other patient data.
Policy makers need to figure out if blockchain is really necessary to keep these transactions honest. They also need to weigh the costs and benefits against other technologies, like a regular, centrally-managed database.
Even though there are good ways to evaluate new pharmaceuticals, there's no equivalent for other innovations, like digital solutions. Often, there's a lack of information between software sellers and buyers, which can put health systems at a disadvantage. This is especially tricky for blockchain solutions, since there aren't many real-world examples to learn from.
The Use of Blockchain in Healthcare
As the use of electronic health records becomes more prevalent, the healthcare system is constantly grappling with issues of protecting patient, hospital, insurance and payment information. And because the amount of data is quite significant, keeping track of the information, while at the same time keeping it secure, can be very challenging. With all these factors in mind, let's take a look at five use cases that demonstrate the benefits of blockchain for healthcare.
- Drug Verification
Because blockchain can be used as a single source of trusted data, it provides accurate and immutable information for supply chain operations. And in the case of prescription drugs, the issue of security also comes into play. Therefore, using blockchain to track processes is a great solution to ensure compliance and security.
- Medical Records
As patients see different doctors and their healthcare needs change, it is essential that medical records can be easily transferred from one facility to another - to ensure accuracy. Now it’s done through a Practice management solution. Blockchain also allows EMRs to be updated quickly and securely.
- Accelerated Credentialing Validation
Blockchain enables faster validation of qualifications for healthcare providers so that training and certification data is up to date. This reduces the likelihood of fraud and inaccuracies and prevents potentially dangerous situations.
- Real-time Insurance Information
Blockchain creates a single source of trusted data that is interoperable and accessible, so both service providers and insurance companies can quickly receive up-to-date information. Fraud attempts can also be detected and prevented with the smart contracts available when using blockchain.
- IoT Security
The number of wireless and Bluetooth devices around the world has grown at an incredible rate over the past decade. The same growth has been seen in the healthcare industry, with handheld medical devices helping to treat patients and allowing doctors to access important information. To ensure that vital medical data is collected and stored securely, blockchain offers a platform that ensures accuracy and timeliness.
Why It is a Good Choice
Blockchain technology in healthcare helps to increase transparency by securely storing and sharing patient information, medical records, drug supply chain details, and other important data. Moreover, blockchain empowers the patient to control who has access to their data, ensuring transparency and accountability. So, there are several advantages:
- Streamlined processes
In an industry where faxing is still widely used and paper checks are the norm for payments, blockchain offers a faster alternative. By replacing outdated paper-based systems with electronic methods, blockchain can bring the same transaction speed seen in other industries, all while ensuring security and traceability.
- Secure transactions
With the rise of cyberattacks in healthcare, it's crucial for hospitals and insurance providers to enhance their security measures. Blockchain's decentralized nature makes it much harder to tamper with, providing a robust defense to safeguard patient information and transactions.
- Traceability and reliability
Email exchanges in healthcare can be risky due to lack of proof of receipt. Blockchain-based technology, on the other hand, offers a secure way to track deliveries, receipts, and openings, ensuring reliable communication and eliminating transaction barriers. Once information is sent via blockchain, it cannot be altered or revoked, thanks to its real-time distribution network.
Implementation Challenges
Hospitals and healthcare organizations face significant challenges when it comes to implementing blockchain technology. They are:
- User adoption
One major obstacle is the slow pace at which the healthcare industry adopts new technologies. Not only would this require a complete overhaul of existing processes and infrastructure, but individual organizations would also need to embrace the change.
- Technical challenges
Additionally, the absence of a ready-made vendor for blockchain solutions poses another hurdle. Since blockchain is a relatively new technology, organizations must build their infrastructure from scratch. Developing payment applications and APIs that utilize blockchain technology is crucial, and once the technology becomes more user-friendly, its adoption can be more widespread.
- High cost
Developing and maintaining a blockchain infrastructure can be expensive. The cost of running a blockchain network, including computational power and data storage, can be high.
Conclusion
The blockchain platform enables the creation of decentralized applications where data transfers are not controlled by any third-party organization. Entities' data transactions are stored in a decentralized database in a secure, verifiable, immutable, and transparent manner, complete with timestamps and other relevant details. Blockchain technology has numerous potential applications in healthcare, such as data sharing, log management, medication tracking, biomedical research, remote patient monitoring, and health data analytics.
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