Blockchain in Healthcare: Benefits, Use Cases, and Real-world Examples

Posted in Healthcare

Blockchain in healthcare is a decentralized digital ledger that serves as a secure framework for storing EHRs, ensuring that patient data is fixed and resistant to unauthorized access. The record-keeping system is distributed across multiple computers rather than stored in a central location. This maintains data integrity and makes altering or tampering with information nearly impossible. Blockchain technology in healthcare is transforming the industry by strengthening data security, safeguarding patient privacy, and improving interoperability of electronic health records. It allows safe data sharing with patient consent across multiple healthcare systems. Decentralized data storage significantly reduces the risk of breaches, develops trust between care providers and patients, and allows them much more control over their health records. Let’s get into details and discuss industry insights about blockchain technology in healthcare market, real-life examples, benefits, challenges ahead, and how they can be solved.

What is Blockchain in Healthcare?

The Office of the National Coordinator for Health Information Technology (ONC) has an outline for achieving nationwide interoperability with structures like secure network infrastructure and verifiable identity for accessing electronic health information. However, existing technologies often fail to meet these requirements. This is where blockchain comes into play.

Blockchain is a decentralized electronic ledger that records transactions across multiple systems. It is used to create a shared, immutable record of patient health information in healthcare. Blockchain in healthcare addresses critical data interoperability and security challenges by providing a secure framework for sharing sensitive health information while maintaining patient privacy and data integrity.

3 Components of Blockchain Interoperability in Healthcare 

1. Secure Network Infrastructure

Blockchain’s decentralized nature eliminates a single point of failure, making it difficult for hackers to compromise the system. This distributed ledger technology ensures data security by distributing transaction records across multiple systems.

2. Verifiable Identity and Authentication

Blockchain in healthcare creates unique digital identities for every individual, enabling secure and reliable identification. This technology makes sure that only authorized people access sensitive health information.

3. Consistent Authorization Representation

Smart contracts automate authorization processes, streamlining access management and ensuring patient consent. This approach improves data sharing and reduces the risk of unauthorized access.

Benefits of Blockchain for the Healthcare Industry

The use of blockchain in healthcare has yielded many benefits; common ones are explained below:

1. Strengthening Healthcare Data Security

Blockchain’s decentralized structure distributes patient records across a network instead of storing them in a single location, enhancing data security. Since no central point of failure exists, this reduces the chances of data breaches or cyber-attacks.

Each transaction on the blockchain is encrypted and fixed; once data is recorded, it cannot be altered or deleted. This feature ensures the integrity and verifiability of medical records, crucial in the healthcare industry where compliance with regulations like HIPAA is necessary. Additionally, blockchain in healthcare allows real-time data access monitoring, providing an audit trail that can identify unauthorized access and fraud.

2. Safeguarding Patient Privacy

Blockchain in the healthcare industry assures patient privacy, which is a top medical care priority. It gives patients the autonomy to control their health data; they can manage who accesses their records through private keys and revoke permissions at any time.

The application of blockchain in healthcare facilitates automated consent management through smart contracts that prioritize patient preferences without requiring continuous manual oversight. Patient-centric data management represents a significant advancement in respecting individual rights within healthcare systems.

3. Empowering Patients with Data Control

The patient-centric approach often discussed about blockchain in healthcare extends beyond mere access to patient health records. It includes the ability to share that data selectively with healthcare providers or researchers.

With blockchain use in healthcare, patients can contribute to medical research without compromising their personal information, increasing participation rates in studies that advance healthcare knowledge.

4. Ensuring Secure and Transparent Data Access

Characteristics like decentralization, encryption, and transparency of blockchain in healthcare help create a strong framework for secure data access. Each log-in event is captured and cannot be altered in any way, allowing auditors to get the trail of who accessed what data and when.

This level of transparency strengthens trust between patients and providers and ensures compliance with regulatory requirements regarding data handling. Moreover, healthcare organizations streamline operations and improve security measures by automating access controls through smart contracts.

5. Reducing the Risk of Data Breaches

With the increase in patient record digitization, the risk of data breaches online is on a continuous rise. Blockchain in healthcare mitigates this risk effectively by distributing patient data across a chain rather than centralizing it in a single database.

The algorithms used in blockchain make sure the integrity of the overall system remains intact even if some nodes are compromised. This makes it extremely difficult for hackers to alter or access sensitive information without getting detection. Blockchain in healthcare also provides a secure environment for storing large datasets at lower costs than traditional methods.

6. Enhancing Interoperability

Blockchain in healthcare facilitates interoperability among multiple healthcare systems by providing a standard structure for data exchange. This allows convenient information sharing across different platforms without compromising security or privacy. 

Improved interoperability equates to better care coordination among healthcare providers. This not only reduces the duplication of tests and procedures but also enhances patient outcomes. 

7. Transforming Supply Chain Management

Blockchain in healthcare makes the supply chain process transparent and traceable. It can easily track pharmaceuticals and medical supplies from production to delivery. Each step is recorded on the blockchain, ensuring that all parties have access to accurate information about the products. 

This clarity in communication prevents counterfeit drugs from entering the market, lessens waste through improved inventory management, and assures compliance with mandatory regulatory standards.

Global Blockchain for Healthcare Market Size, 2018-2032 (USD Million)

5 Use Cases of Blockchain in Healthcare

Common real-life examples of blockchain in healthcare use cases include: 

1. Patient-Centric Electronic Health Records

Many healthcare systems are still battling with data silos that negatively impact patient care. Implementing a blockchain in healthcare systems for electronic medical records (EMRs) addresses this problem. It offers a single view of patient data without storing the actual patient data on the blockchain itself. Every piece of information is transformed into a unique hash function, ensuring that only patients can decode their information with consent.

Medicalchain leads this initiative, offering benefits such as:

• Single Source: Extensive and complete access to medical records improves patient and provider relationships and enhances overall treatment outcomes.
• Patient Control: Patients receive update alerts in the event of a log-in activity that can help manage consent for sharing records.
• Validation for Insurers: The patients validate information from the blockchain system. Insurance companies can verify your claims directly from you, cutting out the middleman and speeding up the process.

This shift will pave the way for a future where treatments are customized based on specific health data.

2. Smart Contracts for Insurance 

Other examples of blockchain in healthcare include companies like Chronicled and Curisium. They establish systems that enable stakeholders like pharmaceutical companies, insurers, or healthcare providers to verify identities and securely log contract details. Shared digital contracts on a blockchain ledger reduce disputes over payment claims.

Their benefits include:

• Advanced Analytics: Enables insurance providers to use digital data to optimize health outcomes and costs.
• Streamlined Operations with Smart Contracts: Automates contract execution, fast-tracks processes, and reduces human error.
• Improved Security and Data Integrity: Decentralized blockchain storage ability improves data security.

3. Medical Staff Credential Verification

Hiring credible medical professionals is paramount in the healthcare industry and can be time-consuming. Leveraging blockchain in healthcare speeds up the hiring process by verifying the credentials of applicants.

ProCredEx developed a system with the help of the R3 Corda blockchain protocol offering the following benefits:

• Faster credential verification speeds up and smooths the hiring process for healthcare organizations, allowing them to focus on providing quality care.
• Monetization opportunities help organizations by allowing them to turn their credential data into a source of income.
• Transparency builds trust with partners by clearly showing staff qualifications, ensuring everyone feels confident in the team’s capabilities.

4. Supply Chain Transparency

Ensuring the authenticity of medical goods is paramount in patient-care giving since counterfeit medicines cause thousands of deaths annually. Blockchain in healthcare easily tracks items from manufacturing through the supply chain, with complete visibility to customers.

One of the most popular examples of blockchain in healthcare is MediLedger. Its blockchain protocol simplifies the verification of prescription drugs benefiting the patient in many ways, including:

• Patient Trust: Customers can track the source of each package by integrating data from manufacturers, wholesalers, or shipping.
• Compliance: Blockchain in healthcare offered a unified system that streamlined compliance for medical device manufacturers and pharmaceuticals. FarmaTrust has automated law enforcement notifications whenever there is a breach case. 
• Supply Chain Optimization: Blockchain and AI in healthcare systems are doing wonders by centralizing sensitive data and allowing companies to use AI for demand forecasting and supply optimization.

5. IoT Security for Remote Monitoring

The increased adoption of remote monitoring solutions indicates the need for strong security measures to safeguard patient data. Blockchain in healthcare plays an integral part by making sure that only authorized individuals access personal data stored as unique hash functions. 

A few of the security features include:

• Tamper Resistance: Changing patient data after it is uploaded to the blockchain becomes nearly impossible without proper authorization. This feature builds trust that the information remains accurate and trustworthy.
• Decentralization: IoT devices can communicate directly with each other without relying on centralized servers, lowering the susceptibility to attacks like DDoS or man-in-the-middle threats and making the system more resilient.

Read more: How IoT Works in Healthcare?

5 WAYS – Blockchain is Transforming Healthcare

Challenges in Blockchain Implementation for Healthcare and Their Solutions 

Although blockchain in healthcare is accelerating technological advancements, multiple challenges remain that are a roadblock to its adoption. Let’s take a look at some of the common issues our industry experts point out and their potential solutions.

1. Interoperability

The lack of a universal standard for blockchain implementation significantly hinders interoperability. Different types of platforms and vendors collaborate, which often results in communication gaps between them, disrupting the seamless transfer of electronic medical records (EMRs).

Solutions:

• Development of Standard Protocols: A standard framework can assure interoperability among various blockchain networks. This is achievable through the combined efforts of researchers and industry stakeholders to define protocols. Initiatives like ISO/TC 307 focus on creating standardized frameworks for blockchain interoperability.
• Open Protocols and Multi-Chain Frameworks: Open protocols like Interledger unify how different blockchains communicate and share data. Multi-chain frameworks, including Polkadot and Cosmos, allow the interconnection of various blockchain networks, enabling them to exchange information efficiently. These frameworks create an environment where different blockchains can plug into a shared infrastructure, enhancing data-sharing capabilities.

2. Security and Privacy

Blockchain systems face security vulnerabilities even with strong security features and encryption methods. Roughly 50% of the attacks and issues were related to private key management. Additionally, the transparent nature of public blockchains raises concerns about patient privacy.

Solutions: 

• Permissioned Blockchains: Permissioned blockchains only allow access to authorized participants. This limits unauthorized entry and malicious attacks, enhancing overall security.
• Data Management Techniques: Sensitive health data is stored off-chain. Only encrypted pointers to this data are recorded on the blockchain. Smart contracts automate data access and usage protocols, making it only accessible to authorized parties.

3. Scalability and Speed

Medical organizations generate a high volume of data daily that can slow down blockchain in healthcare networks, making it difficult to process transactions quickly. This can be a problem, especially when we need to access patient information in real-time. While blockchain is great for security, it may not be as fast as traditional systems when handling large amounts of data.

Solutions: 

• Off-Chain Data Storage: A hybrid approach can address the scalability challenges caused by large volumes of healthcare data. By storing the data off-chain and using blockchain to record cryptographic hashes and metadata, the network’s performance can be improved. This maintains data integrity and security while optimizing transaction throughput.
• Permissioned Blockchain Networks: Implementing permissioned blockchain networks can enhance scalability and security. Optimizing the consensus mechanism can fast-track transaction processing by restricting access to a predefined set of nodes. 

4. Stakeholder Engagement and Lack of Incentives

One of the biggest challenges in using blockchain in healthcare is involving all stakeholders, especially patients. Blockchain can be complex, and many people may not understand how it works or how to manage their health data. This lack of understanding can make it challenging to get people to adopt new technologies, even if they have the potential to improve healthcare.

Solutions:

• Education Initiatives: Training programs that simplify blockchain concepts can help stakeholders, especially patients, understand their health data management effectively. Custom-set workshops or online resources, according to the target audience, can also help.
• Usability Focus in Design: User-friendly applications prioritizing utility and ease of use encourage widespread adoption among healthcare stakeholders. An intuitive interface will help users navigate the system confidently, improving the acceptance rate. 

Read more: How to develop a healthcare app?

The Future of Blockchain in Healthcare

We can expect significant changes in the future of healthcare with blockchain’s ability to elevate data security, interoperability, and patient control. Blockchain technology in healthcare promises to create a secure, decentralized ledger for health records, allowing patients greater control over their data and facilitating seamless information exchange of electronic medical records. Integrating blockchain with digital twins and multi-omics data will enable real-time monitoring of health parameters for more personalized preventive strategies and overall improvement in public health outcomes.

Custom Healthcare Solutions By Folio3 Digital Health

Folio3 Digital Health is among the leading providers of innovative, custom healthcare solutions tailored to seamlessly integrate your existing systems. Our solutions adhere to compliance regulations like HIPAA and follow industry standards, including HL7 and FHIR, ensuring interoperability and data security. Utilizing an HL7 interface engine, we facilitate efficient communication between disparate healthcare systems, enabling the smooth exchange of patient information. Partner with us and streamline organizational operations, gain a competitive edge, and improve patient outcomes. 

Conclusion: The Road Ahead for Blockchain Technology in Healthcare

Blockchain has the potential to revolutionize the healthcare industry by addressing its main challenges, such as data security, patient privacy, and interoperability. By eliminating the need for intermediaries, blockchain can significantly reduce costs and increase the efficiency of healthcare systems. Blockchain promises improved patient outcomes and a more cohesive healthcare ecosystem. As healthcare organizations embrace these changes, they will optimize operations and unlock new opportunities for effective healthcare delivery across the industry.

Frequently Asked Questions 

How Blockchain Can Be Used in Healthcare?

Blockchain creates a single source of truth that assures interoperability and accessibility, providing real-time updated information for medical providers and insurance companies.

Which Technology Is Used in Blockchain in Healthcare?

Blockchain uses the three principles of cryptography, decentralization, and consensus to create a secure software system that is nearly impossible to tamper with. 

What Is The Difference Between Public and Private Blockchain?

Public blockchains are entirely transparent and allow anyone to view all network transactions, while private blockchains only allow authorized participants to view the transactions. 

What is the Role of AI and Blockchain in Healthcare?

Healthcare professionals will have secure access to medical records with the help of blockchain technology. AI analyzes this data using multiple algorithms to help them make informed decisions based on large datasets.

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