Blockchain in the healthcare industry may not be the ultimate solution to tackle the challenges. But it certainly has the potential to save billions. Of course, the question may arise in your mind how? It is possible by optimizing the current workflows and disintermediating some high-cost gatekeepers. The new study claims.
The global blockchain technology market in the healthcare industry study report finds the key issue in the healthcare industry. The issue is that the healthcare industry struggles to find a trade-off between the risk and reward of going digital. However, the use of blockchain technology gives more relaxation and timely solutions to mitigate some of its pressing needs around trust and security. Blockchain or distributed ledger technology (DLT) in the healthcare industry is a new data structure that creates trusted distributed digital ledgers for information and assets.
In a nutshell, blockchain in the healthcare industry is an immutable record of digital events shared peer-to-peer between different parties. And, only the participants can update in the system. However, the information once entered; it’s hard to erase.
While relatively immature, blockchain in the healthcare industry is slowly migrating from pilot Proof of Concept to selected business-to-business commercial. Due to this, it demonstrates the initial return on investments across B2B focused enterprise-level initiatives.
Analysts’ Approach to Identify the Scope of Blockchain in Healthcare Sector
Firstly, analysts take the current vendor landscape, actual commercial adoption by key healthcare stakeholders globally and funding trends into account to carry out the research. Around 250 vendors have been considered for this analysis which provides details of how blockchain adoption takes place. Besides, it provides details of products, solutions, projects, functional and application focus for the healthcare industry. The global analysis of current commercial deployments, major industry collaboration on pilot projects, and funding trends are considered to estimate blockchain commercial market size and future projection.
The research brings a crucial fact into focus i.e. progressive healthcare companies should make the switch now from “What is blockchain?” to “Where I Should invest in blockchain?”
Also, the research confirms that most blockchain projects and vendors’ solutions are at an early stage. Considering this fact, healthcare buyers need to undertake a thorough assessment to invest or engage with the most promising options. This is exactly what going to help healthcare industry stakeholders to make the informed decision making. Furthermore, collaboration with the prominent healthcare-focused consortiums such as IBM’s Blockchain Health Utility Network, Mellody by IMI, Medibloc, etc. will be a critical consideration for future success.
Some of the Key Findings from the Research on Scope of Blockchain in Healthcare Industry Includes
Who are the early adopters?
Payers, providers, and pharmaceutical companies are some of the early adopters of blockchain technology in comparison to other healthcare stakeholders. For example, 2018 is the year where a lot of collaboration takes place on healthcare-focused consortia.
Industry Unmet Need
Depending on the industry estimates, $455 billion in global healthcare spending is lost due to fraud, waste, and abuse. The potential application of blockchain technology provides timely solutions to mitigate the pressing needs of trust and security with digital workflows.
Key Growth Opportunities
Early commercial successes are helping this market grow at a robust CAGR of 61.4% between 2018-22. For example, the blockchain application across medical billing/revenue cycle management and drug supply chain management applications demonstrate the highest cost-saving potential in the next two to three years.
By offering a fresh approach to healthcare data interoperability and ensuring a trusted as well as patient-centric data governance approach, the Personal health records use case becomes the holy grail. On the other hand, the large-scale commercial deployment of personal health records application seems more feasible in Europe and Asian countries. Why? Because the vendor data ecosystem is relatively less complex when comparing the data with the United States market.
Technology Convergence Potential
Blockchain use in the healthcare industry provides much-needed trust and security as well as audit-ability to intelligence journey. More specifically, the interplay/convergence potential between blockchain, Artificial Intelligence, and the Internet of Things will further catalyze innovation and adoption. Plus, its related application in the healthcare realm. The convergence of AI and Blockchain will provide a new federated learning system to healthcare stakeholders to promote medical research. But convergence is not a process that will happen immediately nor a simple and linear progression. The days are coming nearer where we will see the broad use of DLTs by telehealth vendors to monetize data science and analytical services with innovative patient-centric care models.
The fact is the United States holds the lion’s share in terms of healthcare blockchain funding. However, favorable government policies and legal ICOs deliver a new mechanism to raise funds in the blockchain space. As a result, innovation culture starts to penetrate new boundaries to attract some of the biggest blockchain/ICO fundings in the last two to three years. Some of the countries that participate in fundings like this are the United Kingdom, Russia, Switzerland, Singapore, South Korea, and Estonia.
What’s your opinion on this? We are eagerly waiting to know!
Meanwhile, you can check why should you focus more on blockchain technology in the coming years