Industry Study: Blockchain in Healthcare is Key to Security, Transparency, and Efficiency

Blockchain, a groundbreaking technology popularized by its association with cryptocurrency and NFTs, has since evolved to become a management solution for various types of industries. And one such industry to note is healthcare.

Blockchain in healthcare is more than just a technological upgrade. This revolutionary technology, recognized for its transparency, security, and decentralization, offers a promising solution to longstanding challenges in healthcare. It represents a fundamental shift towards a more secure, transparent, and efficient healthcare system. As per reports, the global blockchain in healthcare market size is estimated to grow from USD 67 million in 2024 to USD 641 million by 2035, representing a CAGR of 22.8 percent during the forecast period till 2035. This shows that there is a high demand for blockchain-based technologies in healthcare.

Securing patient data and personal information

Breaching healthcare data always becomes the top priority for cybercriminals. A USA TODAY analysis of Health and Human Services data found that more than 144 million Americans’ medical information was stolen or exposed in 2023 in a record-breaking number of healthcare data breaches. The hackers stole the critical information and used it unethically.

This report shows the necessity of a more secure healthcare system. Undoubtedly, blockchain (a tamper-proof and incorruptible solution) proves to be an effective solution to secure patients’ data. 

With blockchain technology, it becomes easy for healthcare professionals to store and manage patient’s healthcare records. The distributed ledger technology ensures the secure storage of patient medical records, preventing unauthorized individuals from accessing the data.

Moreover, blockchain also ensures data immutability. This means that once the information is recorded, it cannot be altered/changed without consensus from the network, guaranteeing the accuracy and authenticity of patient data over time. This immutability nature of blockchain ensures that data remains tamper-proof and transparent, enabling healthcare professionals to trust the accuracy and integrity of the information they rely on for critical decision-making. Likewise, blockchain also allows the seamless sharing of patient records across different healthcare providers while maintaining data accuracy.

Blockchain in healthcare brings transparency to supply chain management  

We all know that drugs/ medicines, and medical tools are all produced by pharmaceutical companies and labs worldwide. With the conventional system, verifying the origin of medical goods becomes impossible. However, with blockchain’s security, reliability, and decentralized storage system, the movement of medical products from one party to another is visible in real-time.

Now, all the parties involved can have complete visibility and transparency of the goods/products they buy, as the entire medical chain has become transparent. This helps create a trusted network of vendors to enhance patient safety.

This aspect has swiftly risen to the top of the healthcare domain’s priority list, particularly in developing countries, where fake prescription drugs cause millions of deaths a year. 

Efficient medical billing and claims processing

The complexities of medical billing and claims processing have long been a challenge for all, be it providers, payers, and patients alike. Traditional systems are often plagued by inefficiencies and errors, resulting in significant financial losses and administrative burdens. However, blockchain technology offers a promising solution to these longstanding challenges – by streamlining the billing process and enhancing clarity and security.

With the help of blockchain, every claim, payment, and adjustment is recorded on the distributed ledger system – thus creating a transparent and tamper-proof record that can be accessed and verified by all authorized parties. This level of transparency not only reduces errors but also facilitates quick and more accurate claims processing, eventually leading to reduced administrative costs and improved cash flow.

Progressions in clinical research and trials

Clinical trials are essential for advancing medical science. They validate the safety and efficacy of new treatments before they are approved for public use. Without these trials, we wouldn’t have many of the life-saving medications and treatments that are available today. 

Despite their importance, clinical trials face several challenges related to: data integrity (maintaining accurate and reliable data), cost (investment in terms of time, money, and resources), and patient recruitment (finding enough participants).

Blockchain can address all these issues as mentioned below:

Improved data integrity. In a task where data accuracy is vital, blockchain ensures that once data is recorded, it cannot be altered or deleted.

Patient recruitment: Researchers can easily access and contact potential participants without compromising on their privacy. Moreover, patients can even use smart contracts (a unique feature of blockchain) to track their data and verify how it is being used, fostering a sense of ownership and trust.

Saving cost and time: By automating many administrative tasks, such as data entry, verification, and reporting, blockchain reduces the need for manual labor and minimizes human errors. Moreover, enhanced transparency and data integrity make it easier to comply with regulatory requirements, thereby speeding up the approval process and making it smoother and quicker.

The adoption of blockchain in clinical trials has far-reaching implications for global healthcare. By streamlining the clinical trial process and reducing costs, blockchain can accelerate the development and approval of new treatments at a faster pace.

Popular healthcare blockchain companies in the United States

Some of the best blockchain companies in healthcare in the United States are:

Avaneer Health – Illinois, United States

Avaneer Health is a secure digital network and platform that simplifies healthcare administration by connecting, collaborating, and providing real-time data access. 

Built on innovative technologies like blockchain, Avaneer Health facilitates transparency and interoperability in healthcare data, through a decentralized network.

Chronicled – San Francisco, United States

Chronicled, is an innovative platform for data alignment and transaction settlement between pharma manufacturers, wholesalers, GPOs, and health systems. With Chronicled, all stakeholders can ensure that their medicine has arrived efficiently and aren’t involved in any suspicious activity like drug trafficking

BurstIQ – Colorado, United States

BurstIQ is an advanced data management platform that harnesses the trust and security of blockchain to manage medical data. Given its comprehensive dataset on patients’ health and activities, BurstIQ has the potential to contribute to the identification of prescription drug misuse, including opioids.

Patientory – Atlanta, United States

Patientory offers a mobile, blockchain-powered, decentralized application designed to facilitate patients and its users with convenient and secure access to their health information. The platform offers unique services like a photo diary, where users can upload their photos regularly to compare their progress regarding fitness and healthcare.

Some of the nation’s bigger firms have started showing interest in blockchain. But, as of today, this technology is still considered in its nascent form, and therefore, the technology cost involved in creating and maintaining it is extremely high. However, as more and more players emerge within the market, newer and more cost-effective technologies are expected to emerge, paving the way for the widespread adoption of blockchain.  With the enormous benefits it offers, like security and protection, and the ability to remain un-corrupted throughout, blockchains is the next big thing to do. Leaders who lack this awareness and knowledge will be left behind in the fast-growing world and will prove to be a liability. Hence, staying skilled and updated is important to stay ahead of the game.  

In brief

Blockchain, this transformative technology, is redefining the landscape of healthcare. From securing patient data to reducing the risks of data breaches, blockchain technology proves to be a boon for the healthcare industry.