Seven Ways Blockchain Will Change Your Health Care Experience

Sep 10, 2018

Blockchain is redesigning the DNA of the global healthcare system. As a manager of a blockchain hedge fund, I have networked with many business owners raising capital for blockchain applications and have seen their potential to disrupt multiple industries. These are new innovations I’ve already begun to see show up in the healthcare space as a physician, practice owner and advisor to hundreds of doctors and business owners.

These applications not only have a direct impact on all entrepreneurs, business owners and taxpayers in terms of their own health but will undoubtedly begin to show up in all industries and across personal investment activities. Knowing them, and staying tuned into these trends is going to be significant for remaining competitive and profitable, regardless of which type of business you are in or hope to get into.

What Is Blockchain?

Put simply, blockchain is a distributed log system which records data on linked blocks in a digitally encrypted format. This secure network of always in-sync databases provides immediate distribution of information, with all data entries being time and date stamped.

Forbes coverage of IBM’s blockchain in health care survey reveals that 16% of health care executives already planned to implement blockchain solutions as of 2017. Within the next 18 months, 56% are expected to have instituted blockchain technology applications.

These seven blockchain application trends for medical professionals are creating tremendous opportunities and substantial benefits for patients and governments. You can easily see how each one could apply to any business owner and entrepreneur's line of work.

1. Record Keeping

Electronic health records (EHR) are one of the primary areas in which blockchain is expected to have the biggest immediate impact. Versions of this technology have already been implemented in several eastern European countries to improve and upgrade digital record keeping and access. The US and its hyper-fragmented and opaque system is one of the largest to benefit from these solutions.

2. Fundraising For New R&D

Digital currencies and blockchain enabled investments are still going to be a major use case for this technology. Deutsche Bank anticipates the equivalent of 10% of world GDP transactions to be recorded through blockchain in the next few years. Deloitte and many other financial institutions have already seriously invested in analyzing the applications in health care. Among them is likely to be new initial coin offerings (ICOs) for funding new treatments and cures, especially in biotech.

3. Funding New Facilities

From new general private practices to future hospitals, blockchain provides plenty of advantages for giving investors confidence and making it easier for broader fundraising among communities, physician partnerships and sophisticated investors and funds.

4. Financing Commercial Real Estate

While the above example may incorporate everything from equipment to materials and business financing, blockchain and its smart contracts and smart mortgage capabilities should make it far easier for health care organizations and medical schools to finance the acquisition and expansion of new commercial real estate, as well as for individuals to participate in backing these mortgages as private lenders.

5. Professional Investment

Despite the perception of being so highly paid, physicians and other medical professionals are not immune to financial and retirement challenges. As you can imagine, this challenge extends to professionals of any industry. In fact, physicians are among the most burdened when it comes to student loan debt. In addition to investing in their own practices, this may include personal real estate investments and private lending investments.

6. Supply Chain Tracking

One of the most important uses of blockchain is supply chain tracking. This is prevalent in health care and many other industries. It can be used to ensure authenticity, facilitate required safety recalls and track equipment and medicines.

Counterfeit drugs alone are estimated to cost the U.S. health care industry $200 billion per year and 750,000 jobs. Globally, at least 800,000 people are estimated to die each year due to counterfeit drugs according to data from Medical Futurist. An issue many businesses are starting to tackle thanks to blockchain.

7. Improving Financial Wellness In The Health Care Business

Blockchain has huge potential to reduce fraud, eliminate chargebacks and provide new ways to fund services and manage health insurance. The less wasteful and more profitable businesses become, and the more confidence investors and insurers have in the system, the better it will be for patients and taxpayers worldwide.

Conclusion

Blockchain is already proving to have many applications in the health care space. These are just seven of the most obvious current applications. Every entrepreneur and business owner will likely see these applications showing up in their own health care over the next few years, even if they don’t realize it. More importantly, blockchain offers many advantages and potential applications for all industries. Being an early adopter ought to prove pivotal in retaining and growing both market share and profitability.

 

Source: Forbes