April 19, 2023
A Short Intro into the Benefits of Blockchain Technology as an Application in Healthcare
Healthcare systems are often bogged down by inefficient processes, manual data entry, and outdated methods of communication. The emergence of blockchain technology has the potential to alleviate these challenges and revolutionize the healthcare system. From secure communication to automated claims processing, blockchain technology can streamline processes and reduce cost, lending itself extremely well for healthcare providers, patients, and insurance companies.
You may wonder, what can blockchain technology do that non-blockchain technology can’t? Specifically in the healthcare sector, blockchain technology provides several upsides: secure communication and data sharing, automated claims processing, and improved data privacy.
Despite billions of dollars flowing into existing security and privacy solutions—the value of the global non-blockchain security and privacy solutions market is set to reach USD 152.1 billion by 2025—blockchain technology is less vulnerable to hacking and data breaches.
Admittedly, the cryptocurrency space has fallen victim to numerous cases of hacks and security breaches. Such breaches are however typically attacks targeted at centralized institutions, operating within the blockchain space. Breaches are often direct results of poor security practices and human error.
For example, a hacker may be able to access the systems of a centralized cryptocurrency exchange, gaining access to large amounts of cryptocurrency. However, it is virtually impossible to breach a whole blockchain, as it utilizes distributed ledger technology and secure encryption protocols. The crucial element here is the use of distributed ledgers. Unauthorized access to data is possible when the data is stored in one centralized location, whereas data stored on a distributed network can only be accessed by the combination of a user identity and their unique key.
Furthermore, blockchain technology utilizes secure encryption protocols to ensure that data cannot be not altered or tampered with. It is crucial that sensitive patient information remains accurate during the process of data sharing between healthcare providers, patients, and insurance companies. The potential implications of patient data being tampered with range from identity theft, medical fraud, insurance fraud, to malicious actors gaining confidential information that they can use for their own benefit. Also, altered patient data could lead to incorrect diagnoses or treatments, potentially leading to serious implications for patient safety and wellbeing. With blockchain technology providing immutable records of medical records and transactions, the chance of human error is greatly reduced, and healthcare provider can much more efficiently access and verify patient data.
Blockchain technology can reduce costs and improve the efficiency of healthcare services by streamlining processes and reducing administrative costs associated with manual data entry and paperwork.
By utilizing smart contracts, blockchain technology can also automate certain processes, such as claims processing, resulting in faster and more efficient service for patients. A 2020 study by the Massachusetts Institute of Technology (MIT) found that blockchain technology could reduce administrative costs for the healthcare system by up to $150 billion per year—this money could be used to fund research into new treatments and medicines, as well as to provide better access to healthcare services in underserved communities. But, the benefits are not only limited to unlocking monetary resources. The same study MIT found that the secure, transparent, and automated claims processing likely results in significantly faster and more efficient services for patients.
Blockchain technology has the potential to revolutionize the healthcare system. From secure communication and data sharing to automated claims processing and improved data privacy, blockchain technology is providing a secure and efficient platform for healthcare providers, patients, and insurance companies. With the potential to reduce administrative costs, blockchain technology can unlock funds for new treatments and medicines or improved healthcare provision—all while ensuring more efficient services for patients.
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