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How Blockchain Can Lower Health Care Costs

blockchain health care industry

Blockchain is innovative technology. While it has been around since the 1990s, it has become increasingly popular in the last decade.

Healthcare is a complicated industry. There are a variety of issues with it, one of which is the fact that healthcare costs increase much faster than inflation or personal income.

Blockchain might be the solution to that problem. It may also help decentralize the industry. While there are certainly pros and cons to both a centralized and decentralized system, blockchain can help in several ways.

Decentralization

Blockchain can be vital in the decentralization of personal data, medical history, and medical data for patients. Blockchain has many features; it is itself decentralized, secure, and immutable, among other features.

Blockchain would help decentralize the industry by improving access to medical information. If all medical records were moved to blockchain technology, it would allow for the information to be secure and transferred easily between those who need it.

Decentralized data will allow the standardization of input and interpretation of the profiles, making it easier for any given medical office to provide speedier processing and therefore more immediate medical attention.

Decentralized but standardized and accessible patient medical data allows for more competition by insurance providers. Blockchain improves medical record management and insurance claim process, which are both costly and time-consuming. With improved processes, there would be lower barriers to entry to be an insurance provider or a care provider and more competition in the industry as smaller firms would be able to better compete.

Decentralization provided from blockchain can allow for more variety in types of coverage offered and allow end-users more input on their own coverage options, medical data captured, tracking.

How it fixes today’s problem

This solution would improve on the current situation because data can be quickly and efficiently referenced by doctors, hospitals, and others who need it. This would lead to faster diagnoses and personalized care plans.

Some of the current problems the industry faces include increasing costs, inefficient practices, and constant data breaches.

Between 2019 and 2017, over 176 million patients had their records exposed from data breaches, as their health and financial information was stolen. Blockchain would limit data breaches because it is an incorruptible, decentralized, and private log, protecting individuals and their data.

Blockchain would make things more efficient as it allows patients, doctors, and healthcare providers to share information quickly and safely. This would help reduce costs and time as miscommunication between medical professionals costs the healthcare industry billions of dollars every year.

We may be years away from blockchain technology being fully implemented in our healthcare industry. With the inefficiencies and high costs of our medical system, it is worth being considered any alternative approaches.

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