Blockchain Technology Paving Way for the Re-invention of Healthcare Industry

Healthcare, one of the basic needs and rights of every individual, is undeniably an expensive affair. According to industry experts, there are multiple challenges that are posed to the healthcare industry that are making the cost of quality healthcare even higher further down the line. The factors like aging population, the proliferation of chronic diseases, and rapid evolvement of technology have all compounded to increase the cost. So much so that according to a recent survey by Economist Intelligence Unit, global healthcare expenses are expected to rise by 4 percent in the periods 2015 to 2019.

The budgets of countries both developed and developing are under strain to accommodate an expense as large as this. Governments naturally aim at providing a high quality of healthcare at low costs. This not only is beneficial for the population but also for the proper utilization of government health care funds.

The only solution to this complicated and multifaceted problem is the seamless blending of public policies, private innovations, and other such complimentary advancements. Though most of the necessary advancements come from the medical community, a main piece of the puzzle is expected to come from the blockchain technology, which is something that came into being to secure the bitcoin transactions.

Top five opportunities to re-invent healthcare through the blockchain

The question that arises here is about the main ways through which blockchain can help the healthcare industry to face the present and future challenges. Here are the top five pointers to take into account in this regard:
  • Improvement in security
  • Reduction in complexity
  • Increase in accuracy
  • Expansion in contextual information
  • Enabling the use of new business models
Improvement in the healthcare security and value chain

The activities of members and the health records need to be securely kept and shared. Blockchain guarantees the security of the e-transactions all through the value chain which provides a proper base for the exchange of funds and care delivery. The patient record is kept as the utmost source of truth which terminates any intermediates regarding security and privacy rules. The transparency offered by blockchain further helps in the identification of duplicate products or unauthorized transactions, and they are at once flagged as fake. This helps in saving the medical insurance companies a lot of money.

Blockchain also helps in controlling the various drug profiles in a much more streamlined manner. For instance, counterfeiting of important drugs, which is a big issue in the developing nations, can be tackled with the help of blockchain. The drugs received by the patients are authenticated by verification and certification from the manufacturers. Technology reduces the chances of counterfeit products getting released in the market.

Since the drugs are efficiently tracked through the system, if there is a drug profile that is manipulated by the hackers, it can be quickly traced through transactions. Thus, pharmacies can control and report the theft of drugs at a faster rate than they could have done earlier.

Reduction in complexity and increase in accuracy

The Blockchain technology is able to help the healthcare industry by enabling a reduction in the number of steps needed for the capital flow and delivery of patient care. The ledger contained in the blockchain helps in quick retrieval of any kind of member information and thus enables the transactions to begin. There is a unified IT structure which helps in aggregating data from more than one source, such as the mobile applications and EMRs.

This allows for the interoperation of transactions which in turn leads to cost reduction and reconciliation of claims for outbound and inbound transactions. All the parties involved in the process can rest assured that they are getting and sharing correct information.

Expansion of contextual information

Perhaps the best example of how shared data structure can be of value is seen in the pharmaceutical industry. Blockchain helps the pharmaceutical industry by providing instant records and sharing of each transaction involved in the care. The Payers get to have a more pro-active role in handling the courses and the prices of medicine, and in-turn in the decision-making process.

Blockchain ensures a new supply chain operation which comes with the facility of decentralized operations. The single biggest benefit of blockchain this way is that the drugs and other such significant devices can be effectively tracked through the supply chain. The end result of this is one of the largest expense with respect to the movement of these in the chain is kept under control.

Enabling the use of new business models

Blockchain enables accurate tracking of the expiration of drugs, thanks to the verification of the cryptographically signed online assets that are certified and issued by the original manufacturers of the drug. Fraudulent and fake goods will be reduced, and this will lead to a thriving second-hand market for the drugs.

The blockchain technology helps the healthcare industry by keeping permanent records of the complete product journey, abolishing the requirement for any third party intermediaries, active authentications, and resolution of conflicts. In future, one can hope to see the healthcare sector further use the technology to ensure efficiencies, reduce wastage, and to deliver on the accounts of transparency, trust, and originality. All the positive contributions are expected to increase the proficiency of customer service operations and cut down the costs.

Contributed By:- 

Dr. Anandhi Ramachandran

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