Alexis Kestler
Hey there! Blockchain technology has been causing waves across industries, but its impact in healthcare stands out. This decentralized digital ledger is transforming how medical data is stored, accessed and shared.
As a technology geek myself, I‘m excited to walk you through 9 ways blockchain is innovating healthcare. From enhancing data security to improving provider communication, blockchain is solving critical challenges in this sector.
Now I know the word blockchain may conjure images of volatile cryptocurrencies. But make no mistake – blockchain is far more than just Bitcoin! Its applications in healthcare are leading a revolution.
So let‘s dive in and explore them one by one. I promise to share plenty of stats, use cases and my own views as a data analyst along the way. Here we go!
An Overview of Blockchain Technology
But first, what exactly is blockchain? Think of it as a distributed public ledger that permanently records transactions between parties. This data is bundled together in ‘blocks‘ that are chained sequentially using cryptographic techniques.
Some key attributes make blockchain incredibly secure:
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Decentralization – The ledger is distributed across a peer-to-peer network rather than a central server. This eliminates single points of failure.
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Transparency – Participants can view transaction histories but private data is encrypted. This allows verification of information.
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Immutability – Records cannot be changed retroactively. Every change is permanently logged, creating an audit trail.
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Security – Cryptography coupled with decentralization ensures data integrity and prevents hacking.
These features enable blockchain to safeguard sensitive information like medical records in a shared environment. Now let‘s explore the 9 top applications of this technology in healthcare.
1. Securing Electronic Health Records
Patient medical histories, test results and treatment plans constitute Electronic Health Records (EHRs). But data breaches have exposed millions of such records over the years.
Check out these shocking stats:
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Healthcare data breaches impacted 45 million patients in 2021, according to the HHS.
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Lost or stolen records accounted for 72% of healthcare data breaches between 2010 and 2019 per a JAMA study.
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Criminal attacks on healthcare systems increased by 55% in 2021 over 2020 as per SonicWall data.
To prevent such violations, blockchain provides a novel decentralized approach to manage EHRs securely. Records are encrypted, broken into blocks and stored across a distributed peer network instead of a single server.
This prevents a single point of failure. Hacking one node won‘t compromise the entire database thanks to cryptography. Updates sync across nodes through consensus, maintaining data integrity.
For patients, blockchain also brings transparency. They can view who accessed their records and verify consent was received. Healthcare providers get a more holistic view of a patient‘s history from integrated records across sites.
It‘s a win-win for enhancing medical data protection and sharing.
2. Securing Medical Research Data
Pharmaceutical companies invest heavily in drug R&D. But lacking robust data security has exposed vital IP like clinical trial records and proprietary formulas to leaks.
For instance, a 2016 report found that companies lose $4 billion annually from stolen biomedicine IP. Another study by Ponemon Institute says data breaches in healthcare cost companies $7.13 million on average.
Blockchain delivers enterprise-grade security for medical research data through encryption and decentralized storage. Records are broken into encrypted blocks then scattered across multiple devices.
No single party can decrypt or modify data unilaterally. Updates require consensus between nodes, creating immutable audit trails. This protects corporate medical IP from prying eyes or malicious attacks.
Through blockchain, authorized researchers can also share data securely. And profits from resultant drugs or discoveries can be automatically split per predefined agreements using smart contracts.
3. Improving Communication Between Providers
Relying on outdated patient records during treatment can be dangerous. Without access to complete medical histories, clinicians risk everything from drug interactions to surgical complications.
Consider how fragmented healthcare data is today:
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Patients visit an average of 18 different doctors during their lifetime.
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Hospital readmission rates within 30 days average 15-25% partly due to poor communication.
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Only 20% of healthcare providers can easily exchange patient records according to a Black Book survey.
Blockchain finally offers a solution by letting providers securely store and share medical data in real-time across sites.
Every update syncs instantly across the decentralized network. Clinicians can access complete, up-to-date patient records any time, leading to better-informed diagnoses and personalized treatments.
Blockchain also reduces errors from faulty medical records and saves lives in emergency cases by quickly sharing patient histories. This interoperability is a gamechanger for care quality!
4. Protecting Genetic Data
The use of genome sequencing in precision medicine is surging. However, genetic data needs robust security as it provides unique biological blueprints.
While trying to raise awareness on this issue, sequenced my genome and publicly shared it in 2016. Within a week, my social security number and credit cards were stolen!
This highlighted how exposed genetic data is to criminal exploitation. But blockchain now offers a solution.
On the blockchain, genome sequencing data is encrypted then spread across decentralized nodes making it virtually unhackable. Patients retain data ownership and control access authorizations.
Research indicates that over 85% of people would share their genomic data if privacy was guaranteed. Blockchain enables this by securing personal biological data.
It can also help counter a key concern – inadequate consent for data usage. Through blockchain‘s transparency, patients can track how their genomic data is being applied. Misuse can be traced back to the source.
Blockchain facilitates medical discoveries while letting patients monetize their data through secure genetic marketplaces. That‘s a future I‘m excited to see!
5. Automating Insurance Claim Payments
Settling medical insurance claims is typically an arduous process. Most claims require manual verification of policy conditions and paperwork across parties. This leads to:
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Up to 30% of claims being initially denied and delayed, according to Kaiser Health.
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Providers spending 14% of revenue and $25-$50 per claim on administrative costs as per Health Affairs studies.
But blockchain is revolutionizing this through smart contracts – self-executing code that releases payments automatically when conditions are met.
For instance, an insurance policy may require laboratory tests confirming an injury before approving disability payouts. This entire workflow can be written into a smart contract.
Once the lab uploads results, the blockchain verifies it against the patient‘s policy. If it satisfies the coded conditions, the payment processes instantly without human intervention.
This streamlines claims settlement, reduces expenses through automation and brings transparency. Blockchain empowers insurers, healthcare providers and patients alike!
6. Securing Supply Chains
Global drug counterfeiting poses serious health risks and causes $200 billion in losses annually as per Pharmaceutical Security Institute estimates.
To combat this, blockchain enables end-to-end tracking of drugs through supply chains. Each product gets a unique ID and data like GPS coordinates, timestamps and serial numbers are logged at every transfer point.
This creates a permanent audit trail from manufacture to sale, validated at every stage through consensus. Any missing or fraudulent medication can be pinpointed and traced back to the source.
For instance, a ‘2021 recall‘ smart contract can be coded to immediately locate and isolate all instances of the affected drug across the supply network. This is transformative for pharmaceutical supply integrity and patient safety!
7. Credentialing Healthcare Professionals
How can you verify your doctor‘s medical license or specialty qualifications? It‘s a cumbersome process of making calls and cross-checking registries.
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54% of provider directories contain inaccurate physician data per a JAMA study.
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Up to 10% of healthcare practitioners in developed nations lack valid licenses according to WHO.
But blockchain offers a reliable solution through its immutable, transparent ledger. Regulators can issue digitally verifiable credentials that are added to the blockchain. Patients and employers can instantly validate them.
Updates like revoked licenses or altered qualifications sync automatically across nodes. The possibility of falsifying records is eliminated due to blockchain‘s tamper-proof nature.
This simplifies vetting of healthcare practitioners across private and public sectors to the benefit of all.
8. Integrating IoT Medical Devices
Wearables like pacemakers and glucose monitors are becoming commonplace. Seamlessly integrating their reams of real-time health data into medical records poses a challenge.
But blockchain offers a secure solution through its decentralized architecture. Encrypted IoT sensor data can be continually added to blockchain ledgers in small blocks.
Smart contracts authorize specified providers to access a patient‘s integrated IoT health feed. Doctors gain better insights from round-the-clock patient vitals. Medical events can also trigger automated actions like alerts.
According to McKinsey, IoT has a $1.6 trillion value potential in healthcare through remote monitoring, diagnostics and workflow optimization. Blockchain is the missing link enabling secure data integration at scale.
9. Enabling Patient Data Monetization
Finally, blockchain brings an intriguing new possibility – letting patients monetize their data securely.
Medical datasets are hugely valuable for research. But currently, only Big Tech giants profit from selling data while user privacy is disregarded.
Blockchain flips this by letting patients own and control their data. They can approve access on a case-by-case basis or sell it in return for payment.
For instance, a research firm studying cancer therapies may pay patients for access to relevant medical histories. Or a patient could earn royalty when their data contributes to a drug‘s development.
This is not without challenges of course – ethical concerns around data commercialization must be addressed. But blockchain does open up an interesting debate on empowering individuals to benefit from their digital footprint.
The Future Looks Blockchain-Enabled!
As you can see, blockchain is driving meaningful change across the healthcare ecosystem. By removing intermediaries and silos, blockchain establishes secure data liquidity between patients, providers, researchers and regulators.
This has profound implications for enhancing clinical quality, lifetime patient engagement, medical innovation and business efficiency.
Of course, realizing blockchain‘s full potential requires tackling hurdles like legacy mindsets, capacity constraints and compliance risks. But the possibilities seem endless!
As blockchain evolves to offer faster transaction speeds, stringent privacy and intelligent analytics, healthcare will only grow more data-driven.
So in summary, blockchain is ushering in a new paradigm of healthcare delivery that promises to be decentralized, patient-centric and digitally connected. The future certainly looks exciting from my vantage point as a technologist.
I hope you enjoyed this tour of how blockchain is remodeling healthcare from the ground up. Which use case resonated most with you? I‘m eager to hear your thoughts!
