Reshaping healthcare: An overview of the potential of blockchain

Imagine a world where your medical records are securely stored, instantly accessible, and easily shared between healthcare professionals – all with a few clicks. Or picture a pharmaceutical supply chain that is transparent, efficient, and counterfeit-free. Welcome to the future of healthcare, powered by blockchain technology.

Blockchain, the ingenious technology behind cryptocurrencies like Bitcoin, has the potential to revolutionise various industries, and healthcare is no exception. We talked already about the impact of blockchain in the areas of Supply Chain Management, Finance and Sustainability. This article will delve into the current challenges faced by the healthcare sector and explore how blockchain applications can address them, creating a more efficient and patient-centric system.

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Current Healthcare Challenges

Let's start the topic by looking at the current problems in the healthcare sector. From there, we will examine the extent to which blockchain technology can mitigate or overcome these challenges.

Data Security and Privacy Concerns

In today's digital age, the security and privacy of patient data are paramount. With data breaches and cyberattacks on the rise, healthcare providers must find new ways to protect sensitive information.

Interoperability and Data Fragmentation

Our healthcare systems are incredibly complex, with numerous stakeholders and institutions involved. This complexity leads to a lack of seamless data exchange between different systems, making it difficult for healthcare providers to access and share information about patients.

Inefficient Supply Chain Management

From manufacturing to distribution, the healthcare supply chain is often characterised by inefficiencies and lack of transparency, leading to higher costs and delays. This is true for every industry.

Counterfeit Drugs and Medical Devices

The proliferation of counterfeit medications and medical devices not only poses a threat to patient safety but also undermines the credibility of the healthcare industry.

Insurance Fraud and Mismanagement

Insurance companies face the challenge of managing claims and preventing fraudulent activities, which can lead to higher premiums and financial losses.

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Blockchain Applications in Healthcare

Despite the aforementioned challenges, the applications of blockchain in healthcare are undoubtedly extensive and exciting - but in turn they also bring their own challenges. Let's dive into what blockchain can do in the healthcare system and, of course, what it can do for each and every one of us affected.

Decentralised Electronic Health Records (EHRs)

Decentralised EHRs are digital health record systems that distribute and store patient data across multiple nodes or servers, i. e. the blockchain version of your health records. They have a number of advantages:

Improved Data Security

Decentralised EHRs use cryptographic techniques, such as encryption and digital signatures, to protect the confidentiality and integrity of health records. This makes it harder for unauthorised individuals or entities to access or tamper with sensitive patient information.
However, it's important to note that decentralised EHRs also come with their own challenges and considerations. Implementing and maintaining a secure decentralised system requires careful design, robust infrastructure, and adherence to privacy regulations.

Enhanced Interoperability

Interoperability is a challenge in the current healthcare system, as different providers may use incompatible EHR systems. Decentralised EHRs based on standards such as HL7 FHIR (Fast Healthcare Interoperability Resources) can facilitate seamless data exchange between different healthcare providers, improving care coordination while maintaining security.

Patient-centric Healthcare

By empowering patients to control their medical data and share it with healthcare providers, blockchain technology fosters a more patient-centric approach to healthcare. This increased data ownership and control can lead to better engagement and understanding of their health, ultimately leading to improved health outcomes.
Also, patients can grant and revoke access permissions to healthcare providers or other entities, ensuring that only authorised individuals can view their records. This reduces the risk of data breaches and unauthorised access.

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Supply Chain Management and Tracking

Drug Traceability

By leveraging blockchain's transparent and tamper-proof nature, pharmaceutical supply chains can be tracked from manufacturing to the end consumer. This traceability can help identify and eliminate counterfeit drugs, ensuring patient safety and protecting the reputation of the industry.

Medical Device Authentication

Blockchain can also be used to authenticate medical devices, ensuring that only genuine and approved products reach patients. This authentication can help reduce the risk of using counterfeit or substandard devices, which could lead to serious health complications.

Efficient and Transparent Supply Chains

Blockchain's ability to provide an immutable record of transactions can streamline the healthcare supply chain, reducing delays and increasing transparency. This can lead to more efficient processes, lower costs, and improved patient care.

See also our article on the topic of supply chain: "Next generation supply chain management - digitalisation of logistics".

Insurance and Claims Management

Smart Contracts for Policy Administration

Blockchain-based smart contracts can automate insurance policy administration, simplifying processes and reducing the potential for human error. This can result in faster and more accurate policy management, benefiting both insurance providers and policyholders.

Fraud Detection and Prevention

The transparency and security offered by blockchain technology can help insurance companies detect and prevent fraudulent claims. By maintaining an immutable record of transactions, insurers can quickly identify suspicious activities and take necessary actions to mitigate risks.

Streamlined Claims Processing

Blockchain's ability to automate processes can significantly reduce the time and effort required for claims processing. This can lead to faster reimbursements for policyholders and lower administrative costs for insurance companies.

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Examples of blockchain implementations in the healthcare sector

Medicalchain: Blockchain-based EHRs

Medicalchain is a pioneering company that uses blockchain technology to create secure, decentralised EHRs. Patients using Medicalchain can easily access and share their medical records with healthcare providers, promoting better care coordination and improved health outcomes.

IBM - Blockchain solutions for healthcare and life sciences

IBM offers a range of blockchain solutions for healthcare and life sciences. These include solutions for identity verification, drug theft reduction, anti-counterfeiting and security compliance. IBM is also working with other companies to develop a variety of blockchain solutions for the healthcare industry, some of which are based on artificial intelligence.

MedRec: Decentralised Patient Data Management

Developed by researchers at MIT, MedRec is an innovative blockchain-based system that allows patients to securely store and share their medical data. MedRec aims to improve patient care by enhancing data interoperability and empowering patients to take control of their health information.

Virtusa – Medical records, clinical trials and more

Virtusa's blockchain solution, called vLife, is designed to allow patients to maintain complete control over their healthcare data. It enables patients to give or revoke access to their medical records to doctors, hospitals, and insurance providers using smart contracts. This ensures that only authorised entities can access a patient's medical data, thereby improving the privacy and security of personal health information.
Additionally, Virtusa's vLife solution enables real-time tracking and validation of clinical trial data by using blockchain ledgers, which ensures authenticity and integrity of medical data used in research.

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Challenges and Limitations of Blockchain in Healthcare

Of course, such a powerful technology as blockchain does not come without its challenges - the following are the ones that need to be overcome to make a national or even global blockchain system for healthcare possible.

Scalability and Performance Issues

One of the main challenges of implementing blockchain in healthcare is its scalability. As the number of transactions and data stored on the blockchain increases, the system may face performance issues, which could affect its ability to handle large-scale healthcare applications.

Legal and Regulatory Hurdles

The healthcare sector is heavily regulated, and implementing blockchain technology may require navigating complex legal and regulatory frameworks. Issues like data privacy, patient consent, and international data sharing need to be carefully considered to ensure compliance with existing laws and regulations.

Data Privacy and Security Concerns

While blockchain can improve data security, it is not immune to potential privacy and security challenges. For instance, ensuring that patient data remains private while still allowing for data sharing and interoperability can be a delicate balance to strike.

Adoption and Implementation Challenges

The widespread adoption of blockchain in healthcare may be slowed by factors such as the need for significant investment in infrastructure, lack of understanding of the technology, and resistance to change among healthcare stakeholders. Overcoming these barriers will require a concerted effort from all parties involved.

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Key Takeaways and Recommendations

To overcome the above challenges, a number of stones need to be removed. The best way to do this is through collaboration, innovation, rethinking the regulatory framework and centring people.

Collaboration and Partnerships

For blockchain technology to reach its full potential in healthcare, stakeholders, including healthcare providers, insurers, regulators, and technology companies, need to collaborate and form strategic partnerships. By working together, these entities can overcome challenges, develop standards, and create a cohesive framework for the implementation of blockchain in healthcare.

Education and Awareness

Raising awareness and understanding of blockchain technology is essential for its successful adoption in the healthcare sector. Educational initiatives targeting healthcare professionals, administrators, and the general public can help dispel myths, highlight the benefits of blockchain, and encourage its use in the industry.

Pilot Projects and Proof-of-Concepts

Implementing pilot projects and proof-of-concept initiatives can help healthcare stakeholders test and evaluate the effectiveness of blockchain technology in real-world applications. These projects can provide valuable insights, identify potential issues, and pave the way for the large-scale adoption of blockchain in healthcare.

Regulatory Adaptation and Support

Regulatory bodies must adapt to the changing landscape of healthcare and provide the necessary support and guidance for the implementation of blockchain technology. This includes revising existing regulations, creating new frameworks, and fostering an environment conducive to innovation and growth.

Focus on Patient-Centric Solutions

The ultimate goal of integrating blockchain technology into healthcare systems is to improve patient care and outcomes. Therefore, it is crucial to prioritise the development and implementation of patient-centric solutions that address the needs and concerns of individuals while maintaining their privacy and security.
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In summary, blockchain technology has the potential to address some of the most pressing challenges in the healthcare sector and open up new opportunities for better patient care. By working together, fostering innovation and focusing on patient-centred solutions, we can change healthcare for the better, benefiting stakeholders and providers alike. A good example is the aforementioned company Virtusa, which collaborates directly with IBM, AWS (Amazon Web Services), educational and research institutions, among others.