There’s no question that health care companies need to change how they do business to stay competitive in today’s world. However, it’s hard to know where to start. Healthcare operations are particularly complex due to the wide range of products and services that need to be provided under the watchful eye of regulatory agencies. So, any changes made will require serious consideration. That being said, blockchain technology can help streamline the healthcare sector and make it more efficient. Furthermore, it can offer immediate savings and long-term strategic advantages through decentralization and immutability.

<img class="aligncenter" src="https://www.news-medical.net/image.axd?picture=2021%2F1%2Fshutterstock_1067569886_(1).jpg" alt="Blockchain Applications in Healthcare" width="514" height="356" />
<h2>Why Blockchain Matters In Healthcare</h2>
Distributed ledgers enable all users to have a continuously reconciled ledger of activity updated as new information comes in. Due to its unique properties, blockchain technology can reduce risk and increase transparency. Furthermore, they can potentially lower costs for stakeholders across health care by digitizing key information and transactions between providers and insurers. As a result, Healthcare enterprises will benefit from improved data security, greater provider network visibility, less administrative burden, and improved member engagement. In addition, they provide clear business rules and guidelines across provider organizations.

In today’s world, healthcare enterprises are looking for more efficient ways to connect with patients. They want this while maintaining compliance with HIPAA, state medical records laws, FERPA, and other regulatory requirements. Blockchain technology offers a clear path forward with business benefits that outweigh most of its risks. Here’s why the healthcare sector should adopt blockchain technology and how this may impact patients, medical professionals, and healthcare providers alike.
<h3>1) Improves Patient Privacy and Safety</h3>
Blockchain technology protects patient privacy, as immutable records are distributed across all networks. Data encryption and individual cryptographic access keys prevent unauthorized parties from compromising patient privacy and identity. By using <a href="https://www.cryptoknowmics.com/news/the-role-of-smart-contracts-in-the-metaverse">smart contracts</a> on a blockchain-based system, patients could be given access to their medical records and securely share them with physicians or researchers without compromising privacy.

The same would apply to sharing sensitive data about research subjects with researchers who need access but do not want patients’ identities revealed. Using smart contracts would allow all parties to verify whether terms had been met before accessing sensitive information about individuals participating in clinical trials or research studies.
<h3>2) Reduces Complexity</h3>
The health care industry is inherently complex. It can be difficult to keep everyone in sync with many different stakeholders. Healthcare IT and blockchain technology could help reduce that complexity by improving how providers, health insurers, patients, pharmacists, and others store and share data among themselves.

To improve patient outcomes, more individuals need access to their medical records across institutions. This would allow them to better coordinate treatment and manage their overall wellness. In addition, the ability to share information seamlessly on a large scale across organizations could greatly improve how we approach patient care today.
<h3>3) Enables Trustless Collaboration</h3>
As an append-only ledger, blockchain makes it easier for multiple parties to collaborate on a shared data set. For example, suppose someone wants to change customer information on a health care provider’s computer system. In that case, they first must submit their request to a central authority (like a clearinghouse or auditor).

The authority then either approves or denies that request, which is then relayed back down through all parties—who can trust that everyone will be using up-to-date information. This approach contrasts with traditional databases, where multiple parties can edit and update entries directly. It’s important to note that blockchain isn’t necessarily better than traditional databases. Rather, it creates new possibilities by bringing transparency and collaboration into data updates.

This approach contrasts with traditional databases, where multiple parties can edit and update entries directly. However, it’s important to note that blockchain isn’t necessarily better than traditional databases. Rather, it creates new possibilities by bringing transparency and collaboration into data updates.
<h3>4) Blockchain Reduces Costs</h3>
It’s impossible to know exactly how much money could be saved by adopting blockchain technology. Still, companies that have already begun experimenting with it see cost savings of 20-30 percent. Of course, reducing costs is an objective of any organization. But in health care, where every expenditure matters and will ultimately impact patient health outcomes, finding ways to cut costs without endangering patients is a top priority.

Health care services are costlier than other industries and growing over time. The biggest expense? Providers’ salaries—facilitating blockchain technology adoption could help eliminate pay disparities between physicians and free up resources to go toward research and better tools.
<h3>5) Improves Efficiency</h3>
Imagine a world where every time you went to see a new doctor, they could see every piece of health information you’ve ever had! That kind of efficiency will save money, time, and lives. And when everyone has access to everyone else’s information, healthcare providers can start working together more effectively. For example, suppose two separate clinics have medications that could help a patient but aren’t aware of each other’s resources. In that case, blockchain technology might ensure they don’t miss out on an opportunity to help someone who needs it.
<h2>Why We Shouldn’t Fear the Future of Blockchain in Healthcare</h2>
The healthcare industry is currently in dire need of an overhaul. From maintaining medical records to increasing patient accessibility, health care organizations have a lot on their plates—and it’s taking its toll. For example, a study from John Hopkins reports that <a href="https://www.fuchsberg.com/blog/leading-medical-errors-cause-of-death-in-us">medical errors are now the third leading cause of death in America</a>, causing 250,000 fatalities each year. They also estimate that 21% of all American adults struggle with chronic disease, representing 80% of overall healthcare costs. Given these staggering statistics, one might think we should be wary about adopting new technologies designed to improve health care. However, industry leaders should embrace new developments like blockchain technology with open arms.

Though blockchain technology may seem intimidating, it’s becoming increasingly clear that healthcare organizations need to adopt it if they want to survive in our increasingly competitive and digitalized global marketplace. Moreover, it can benefit from increased efficiencies to better patient care. So the question is, no longer should we use blockchain technology? But rather, how quickly can we implement it?

The Health Care Sector Should Adopt Blockchain Technology

As the health care sector continues to grow and expand, the need to adopt blockchain technology also becomes more important

Oluwademilade Afolabi is a freelance writer and editor passionate about blockchain technology and the health industry. He is a 6th year medical student, and has worked with various companies and blogs since the blockchain revolution began.

The Health Care Sector Should Adopt Blockchain Technology

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