Applications of Blockchain in Healthcare: from Medical Records to Clinical Trials

Healthcare systems worldwide are grappling with immense financial pressures, inefficiencies, rising costs, and complex regulatory requirements.

Projections From the National Health Expenditure data suggested that global healthcare spending is set to grow by an average of 5.6% annually from 2023 to 2032, outpacing GDP growth, which is expected to increase by 4.3%.

This growth will demonstrate the elevated healthcare’s share of GDP from 17.3% in 2022 to 19.7% in 2032. 

The results are not difficult to project, such as allocating more economic resources to healthcare and emphasizing innovation and efficiency in the healthcare sector.

Amid these challenges, blockchain technology, initially developed for cryptocurrencies, emerges as a disruptor to reduce healthcare costs, improve healthcare delivery, and improve the healthcare system.

This article explains how blockchain can revolutionize healthcare, particularly in securing medical records, ensuring drug traceability, and maintaining the integrity of clinical trials.

Understanding Blockchain Technology

Blockchain is a decentralized digital ledger technology designed to record transactions across multiple computers so that the recorded data cannot be altered retroactively without altering all subsequent blocks and obtaining the network’s consensus.

This system’s key features include decentralization, transparency, immutability, and security.

Meanwhile, decentralization eliminates the need for a central authority, distributing data across a network of computers, thereby reducing the risk of single points of failure. On the other hand, transparency ensures that all transactions are visible to participants in the network, enhancing accountability and trust.

Also, immutability means that once data is recorded on the blockchain, it cannot be changed or deleted, ensuring the integrity and reliability of the information.

Lastly, security is maintained through advanced cryptographic techniques that protect data from unauthorized access and tampering.

In essence, blockchain operates by recording data in blocks linked together in a chronological chain. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data.

The decentralized nature of blockchain ensures that data is validated by multiple nodes, making it extremely difficult to alter records without consensus from the network.

Looking at the feature, one will see the possibility of blockchain in many industries. Blockchain technology is particularly suited for healthcare applications because it addresses critical issues such as data security, interoperability, and transparency.

By providing a secure, immutable, decentralized system, blockchain can significantly enhance medical records management, drug traceability, and clinical trial integrity.

Blockchain in Medical Record Management

Medical record management faces numerous challenges, including data breaches and cyber-attacks, fragmented and siloed data systems, lack of patient control over their data, and difficulties sharing data across different platforms and providers. Blockchain technology offers a compelling solution to these problems.

Blockchain’s decentralized nature enhances security and makes it highly resistant to data breaches. Patient control is also significantly improved, as patients can have complete control over their medical records and decide who can access their data.

Furthermore, blockchain facilitates interoperability, sharing seamless data across different systems and providers. This can lead to improved data security, enhanced patient privacy, and streamlined access to medical records.

Real-world applications of blockchain in medical record management are already demonstrating these benefits.

For instance, MediBloc uses blockchain to create a patient-centric health information ecosystem, ensuring data privacy and security.

Similarly, Medicalchain enables secure, fast, and transparent exchange and usage of medical data, allowing patients to control access to their records while ensuring data integrity.

Blockchain in Drug Traceability

The pharmaceutical industry faces significant challenges in ensuring drug authenticity and traceability.

Issues such as counterfeit drugs, inefficiencies in tracking drugs through the supply chain, and lack of transparency can lead to drug recalls and safety issues.

Blockchain technology can address these problems by ensuring drug authenticity and improving supply chain transparency.

However, blockchain can enhance the verification processes to ensure that only genuine drugs reach patients. Recording every transaction on the blockchain makes verifying the origin and authenticity of drugs easier.

Additionally, blockchain improves supply chain transparency, allowing all stakeholders to track the movement of drugs in real time.

This reduces counterfeit drugs and enhances patient safety by ensuring that patients receive safe and authentic medications.

Several successful implementations demonstrate the potential of blockchain in drug traceability. IBM and Walmart, for example, have collaborated on a blockchain-based system to track the provenance of drugs.

Chronicled uses blockchain to create a secure supply chain network for pharmaceuticals, enhancing transparency and efficiency in the distribution of medications.

Blockchain in Clinical Trials

Clinical trials are essential for developing new medical treatments. Still, they face significant challenges, including data integrity issues, difficulty obtaining and managing patient consent, and a lack of transparency in the trial process. Blockchain technology can revolutionize clinical trials by ensuring data integrity and securing patient consent.

Using blockchain, clinical trial data can be recorded in an immutable ledger, preventing tampering with trial data. This enhances the reliability and trustworthiness of the trial results. Blockchain can also manage and verify patient consent transparently and securely, ensuring that patients are fully informed and their consent is adequately documented.

Several case studies illustrate the benefits of blockchain in clinical trials. ClinTex uses blockchain to improve the quality and efficiency of clinical trials, ensuring data integrity and enhancing transparency. IBM Watson Health is exploring blockchain to enhance transparency and trust in clinical trial processes, making it easier to manage and verify trial data.

The benefits of using blockchain in clinical trials are manifold. Immutable records increase trust among stakeholders and build confidence in trial results. Enhanced data transparency allows all trial data to be accessible and verifiable, ensuring the trial process is transparent and accountable. Simplified data management facilitates efficient trial processes and reduces delays and errors.

Other Applications of Blockchain in Healthcare

Blockchain applications in healthcare are not limited to the three above—the use cases are numerous. Every feature of blockchain can enhance healthcare delivery and welfare. As such, here are some other applications.

Blockchain in IoT Security

Integrating the Internet of Things (IoT) in healthcare brings significant benefits but poses security risks. Connected medical devices generate vast amounts of data that must be secured to ensure accuracy and prevent unauthorized access. Blockchain technology can provide a robust security solution for IoT in healthcare.

Blockchain can securely record and verify data generated by connected medical devices, ensuring that it is accurate and has not been tampered with. Additionally, blockchain can prevent unauthorized access to data, protect patient privacy, and provide the security of medical information.

Blockchain in Expedited Credentialing

Credentialing healthcare providers is a complex and time-consuming process. Blockchain can simplify this process by securely storing and verifying credentials, reducing the time and cost associated with manual verification processes.

By creating a tamper-proof record of credentials, blockchain ensures that healthcare providers’ qualifications and certifications are accurate and up-to-date.

Blockchain in Safeguarding the Efficacy of Medications

Ensuring that medications are stored and transported under optimal conditions is crucial for maintaining efficacy.

Blockchain can track the production and distribution of drugs, ensuring that they are correctly handled throughout the supply chain. This safeguards the effectiveness of medications, ensuring that patients receive effective treatments.

Blockchain in Real-Time Health Insurance Information

Health insurance processes can be complex and prone to errors. Blockchain can streamline these processes by providing real-time access to patient information, reducing fraud, and improving claims processing accuracy.

By creating a secure and transparent system for managing health insurance information, blockchain can enhance the efficiency and reliability of health insurance processes.

Challenges and Considerations

While blockchain holds great promise for healthcare, there is a need to address most of the challenges, some of which are 

Scalability Issue

Technical challenges such as scalability and integration with existing systems can impact the performance and adoption of blockchain solutions.

Scalability issues must be addressed to ensure blockchain networks can handle the volume of transactions required in healthcare applications.

Integrating blockchain with existing healthcare systems can be complex and costly, requiring significant technological and infrastructure investments.

Regulatory concerns

Regulatory and legal considerations also play a crucial role in adopting blockchain in healthcare.

Ensuring blockchain solutions comply with healthcare regulations, such as the Health Insurance Portability and Accountability Act (HIPAA) in the United States, is essential for protecting patient privacy and data security.

Developing a legal framework to support blockchain adoption in healthcare is also necessary to address liability and data ownership issues.

Barriers to Adopting Blockchain

Adoption barriers, including high implementation costs and resistance to change, can hinder the widespread adoption of blockchain in healthcare.

Healthcare providers may be reluctant to invest in new technologies, particularly when faced with budget constraints and competing priorities.

Additionally, resistance to change among healthcare providers and staff can impede the adoption of blockchain solutions.

Several potential solutions and future outlooks can be considered to overcome these challenges.

Developing more scalable blockchain technologies can address performance issues and enable the broader adoption of blockchain in healthcare.

Educating and training healthcare providers on the benefits and implementation of blockchain can help overcome resistance to change and promote the adoption of new technologies.

Developing supportive legal and regulatory frameworks can provide guidance and assurance for adopting blockchain in healthcare.

Conclusion

Blockchain technology is ready to disrupt the healthcare industry further. It can revolutionize medical record management, drug traceability, and clinical trials by addressing critical issues such as data security, transparency, and efficiency.

More investment in blockchain in the healthcare industry will improve patient outcomes and operational efficiency. Thus, the future of healthcare depends on the successful integration of innovative technologies like blockchain, which promise to enhance the quality and delivery of healthcare services.