When you hear blockchain, maybe the first thing that comes to mind is cryptocurrency, like Bitcoin. However, as blockchain technology becomes better understood, professions such as those in healthcare could soon find benefit in using this new technology.
Blockchain allows digital information to be distributed but not copied. With blockchain, a database lists every transaction, or “block,” with a time-stamp and a connection to the preceding block, thus forming a chain. Blockchain records are not stored in one place – instead, it is stored across a network of trusted parties. For a block to be added to the chain, everyone within the network has to agree. Download our Blockchain in Medicine PDF.
Benefits
- No Manipulation of Information: Once added, a block cannot be edited or deleted; it offers indisputable proof that the transaction occurred. This provides data security and transparency between physician and patient.
- Decrease in Fraud: Since all parties must confirm the addition of a new block, this system holds each party accountable for its role in the patient’s care; the incidence of fraud and errors should drop drastically.
- Share Securely: This “decentralized ledger” allows physicians to more securely control of protected health information (PHI). Physicians, practice administrators, and patients alike can feel secure in blockchain’s ability to provide a reliable method for transporting and verifying sensitive information.
- Add to Research: Additionally, since pieces of the information can be shared separately, it can provide clinical researchers with a wealth of anonymous REAL data.
Barriers
- Cost: Although blockchain transactions are free (or of minuscule cost) setting up the infrastructure system will likely be costly. Beyond that, it will require training, new processes, and acceptance among administration and staff to integrate this newer technology.
- No Healthcare Expertise: Since blockchain technology isn’t currently widely used in healthcare, you would be innovating within your field. Of course you can draw on the experiences and research from financial institutions, but there will certainly be trial and error.
- HIPAA: Because there is no industry standard for the use of blockchain, it will be easy to violate existing HIPPA regulations. For instance, Safeguarding PHI with a private key is helpful but does not meet all the regulatory requirements.
It may seem like a long way to go before blockchain is widely accepted and used, but it could be here sooner than we realize. We all have seen how fast technology can change a field (including medicine), then you add a world-wide pandemic which provided a larger opportunity for virtual visits. Blockchain technology could be a game changer for the healthcare industry, both by modernizing the way PHI is handled and shared, and by giving telemedicine encounters just as much legitimacy as in-office visits.
Taylor Clinkenbeard, Senior Analyst
Taylor works in both the Tax & CAS departments. She joined us as an intern and developed a unique aptitude for identifying trends in numbers and a quick understanding software.
