Prospects for the application of blockchain technology in healthcare

The value of the global healthcare industry has grown exponentially in recent years, reaching over $8.45 trillion in 2018. And, this growth is expected to continue, with the industry on track to grow at a compound annual growth rate (CAGR) of 8.9% to nearly $11.9 trillion by 2022. Despite its rapid growth, it is widely acknowledged that the industry is plagued by additional costs and system-wide inefficiencies—issues that must be addressed for the sake of the patients it serves and the physicians it employs.

The healthcare industry is plagued by a host of pressing challenges, from managing patient data to maintaining the drug supply chain. The pressing challenges facing the healthcare industry are not only the large amount of patient data, but also inefficiencies, bureaucracy, errors, and higher administrative costs.

As it stands now, it can take months to process a payment or transfer patient information between insurance companies and institutions. All the while, patients have no idea why this is happening. Ultimately, what you end up with is not only inefficient communication between healthcare providers, but, more seriously, a loss of trust in you by your patients due to a lack of transparency.

The healthcare industry is changing the landscape of today’s remote visits and telemedicine services, thanks to the increasing accessibility of digital solutions. These consultations require not only remote access, but also a secure way to pass information from patient to doctor and from doctor to patient. This, coupled with the growing popularity of mobile medical devices and remote monitoring, presents an opportunity for blockchain technology.

Blockchain technology has made significant progress in the healthcare market

•In January 2019, Aetna, owned by CVS Health, partnered with PNC Bank and IBM to design a blockchain healthcare network initiative that also includes Anthem and healthcare services companies.

•In February 2019, Singapore-based startup CSE SG launched a new generation of Smart Contract 2.0, which features ultra-fast blockchain 3.0 technology. The company has partnered with healthcare service providers in Thailand and South Korea to integrate Smart Contract 2.0 to improve healthcare management processes.

Some of the most prominent competitors operating in the competitive landscape of the global blockchain technology in healthcare market include IBM and Microsoft, among others.

The dynamics of blockchain technology in the healthcare market

Blockchain allows for transparent and secure patient data management and the ability to track data across computing devices. Blockchain technology provides a consistent database stored through a single record that can be easily tracked and audited by users. In addition, decentralized databases store copies of data in multiple places without the need for a third-party administrator, eliminating the need for middlemen and thus reducing administrative costs. These benefits allow blockchain technology to maintain a transparent patient database, making it possible to establish a patient-centric business model in the healthcare system. Blockchain technology in the healthcare market may benefit as a result.

Despite its huge potential, the adoption of blockchain technology in healthcare has been slow. The integration of blockchain technology in healthcare involves many processes and requirements involving numerous stakeholders, including deployment cycles (short, medium or long term), scalability and important security features. Currently, blockchain is penetrating into back-office operations, where the technology is being used to enhance supply chain traceability. On the other hand, by enabling patients to access data through blockchain, the front-end operations of the healthcare industry can be significantly improved, however, since the full integration of blockchain technology will require major infrastructure changes and a proper ecosystem, the penetration of the technology is expected to remain slow.

Regional Outlook of Blockchain Technology in Healthcare Market

Segmentation of blockchain technology in healthcare market

The blockchain technology in healthcare market is segmented based on application and end-user. Based on end-user, the blockchain technology in healthcare market is segmented into:

• Medical expenses

• Healthcare providers

•Pharmaceutical companies

•other

Based on application, the blockchain technology in healthcare market can be segmented into:

• Claims adjudication and billing management

•Clinical data exchange and interoperability

•other

There’s no denying that blockchain is already recognized as one of the most secure data management systems available today, but the key to its success in healthcare will be the unparalleled interoperability it can offer.