The healthcare industry is thriving, specifically after the Covid-19 pandemic hit nearly two years ago. Healthcare is an essential need and a profitable business because who doesn’t need the service? However, the pandemic has forced the industry to change and grow to meet the needs of patients’ needs and comply with new regulations. One way healthcare changes is by implementing blockchain technology into its business model.
The global healthcare sector is expected to reach $1.29 trillion by 2025. The United States healthcare system is the most expensive in the world, accounting for nearly 18% of the country’s GDP. That means the healthcare business will surely flourish in the coming years.
However, there are many issues that the healthcare industry is facing, such as the increasing cost of care, patient data breaches, and fraud. This is where blockchain can help solve these problems.
What is Blockchain Technology?
Blockchain is a distributed database that allows for secure, transparent, and tamper-proof transactions. It’s the technology that powers Bitcoin and other cryptocurrencies. Blockchain consists of a growing list of records, called blocks, linked together using cryptography. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data.
The main advantages of blockchain technology are its security, transparency, and immutability. These features make it ideal for use in the healthcare industry. For example, blockchain provides a secure way to store and share data. In addition, the data is encrypted and can only be accessed by authorized users. This means that the risk of data breaches and cyber-attacks is reduced.
Furthermore, blockchain gives patients more control over their data as they can choose who can access it and for what purpose.
How Blockchain Can Improve the Healthcare Industry in 5 Ways
Here are some benefits of using blockchain technology in healthcare businesses.
1. Enhancing security and privacy
One of the biggest issues facing the healthcare industry is data breaches. Hackers target healthcare organizations because they contain valuable data, such as Social Security numbers, credit card information, and medical records. These records can be sold on the black market for a high price.
Blockchain can help improve the security of healthcare data by storing it on a decentralized network. The data is spread across multiple computers, making it more difficult for hackers to access it. In addition, blockchain data is encrypted, so even if hackers could access it, they wouldn’t be able to decrypt it and make sense of it.
2. Improving transparency
Another issue facing the healthcare industry is the lack of transparency. Patients often don’t know how their data is being used or shared. This can be a problem regarding consent forms, as patients may not understand their consent.
Blockchain can help improve transparency in the healthcare industry by providing a secure and transparent way to store and share data. Patients could see how their data is being used and shared. In addition, they could consent to specific uses of their data.
3. Empowering patients
Transparency improves the overall service in the healthcare industry. One of them is giving transparent and essential information to patients.
Blockchain gives patients more control over their data. They can choose who can access it and for what purpose. This will empower patients to make more informed decisions about their care. In addition, blockchain helps patients keep track of their medical records and share them with doctors.
4. Reducing the cost of care
Blockchain can improve healthcare services and reduce costs by creating a decentralized system. When all the data related to patients, doctors, and hospitals are stored on a blockchain, it will be easier to track and manage. This will lead to reduced paperwork, improved coordination between different departments, and less time spent on administrative tasks.
5. Reducing fraud and improving coordination
Fraud is a big problem in the healthcare industry. Healthcare fraud costs the U.S. government $68 billion annually. Blockchain can help reduce fraud by creating a transparent and tamper-proof system. all the data related to patients, doctors, and hospitals will be stored on a blockchain. This will make it easier to track and manage, which will lead to reduced fraud.
When fraud can be mitigated, blockchain will then improve the coordination between different departments in a hospital. If all the data related to patients, doctors, and hospitals are stored on a blockchain, it will be easier to track and manage. This will lead to improved communication and coordination between different departments, ultimately providing better patient care.
Blockchain is a newly developed technology that helps many businesses manage their data safely, and the healthcare industry is no exception.
Incorporating blockchain in the healthcare industry can help in various ways: reducing fraud, empowering patients, and better coordination between departments. Not only that, but the blockchain can also provide a more secure system against data breaches or cyber-attacks.
Andre Oentoro is the founder of Breadnbeyond, an award-winning explainer video production company. He helps businesses increase conversion rates, close more sales, and get positive ROI from explainer videos (in that order).
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