Blockchain for Healthcare: Enhancing Security and Transparency in Medical Data

As many as 136 million healthcare records were exposed due to data breaches in 2023!

It is not a secret that the healthcare industry is prone to cyber-attacks. With crucial information about a patient’s health and lifestyle stored in a simple electronic file, it is natural for the industry to attract cyber threats.

A study suggests that on average there were nearly two breaches per day in 2023 and it costs as much as $6.2 billion annually for the US healthcare industry. Despite this, healthcare organizations spend nearly as little as 6% of their annual budget on medical data security.

Though it is understandable that the healthcare industry is facing a lot of challenges in terms of healthcare data management and workforce, it can be argued that ignoring patient data protection during the digital transition of the healthcare industry can have devastating effects. For instance, it can lead to a lack of trust and even damage to the reputation of healthcare practices.

So the question is, how can practices maintain healthcare transparency and prioritize patient data protection?

Well, the answer is hidden in blocks and chains. In simple terms, blockchain healthcare can not only enhance medical data security but also bring much-sought healthcare transparency. Its use cases have been phenomenal in cryptocurrency, supply chain, insurance digital transformation, and even in the military.

In this blog, let’s uncover blockchain technology in healthcare and how it can revolutionize healthcare by being the catalyst in the digital transition of the healthcare industry.

So, without further ado, let’s get started.

Unlocking Securing and Efficient Data Sharing

Blockchain technology in simple words can be explained as a decentralized chain of blocks encrypted which can be accessed by authorized personnel but cannot be manipulated.

In reference to blockchain technology in healthcare, patient records can be stored in blocks, and the widespread network of patients, providers, and healthcare organizations forms a chain. Once the blockchain is formed, cryptography enhances security by creating secure and tamper-proof medical records.

This way, decentralized healthcare systems can be connected securely, and healthcare data management can be simplified.

However, by combining this with role-based access, patients can easily control who can access their data using blockchain. Along with that, being decentralized healthcare systems, it also encourages secure data sharing and this is how blockchain enhances security in healthcare and also prompts better care coordination practices.

Combating Counterfeit Drugs and Medical Supply Chain Fraud

Blockchain technology has been a successful venture for the supply chain industry. The healthcare industry is still struggling to find its way into a connected healthcare ecosystem, especially in terms of medical data transparency and the supply chain of drugs.

Blockchain technology in healthcare can help in tracking the movements of drugs and medical supplies from pharmacy to patient. For instance, after a pharmacy receives an e-prescription for a patient, every touchpoint can be recorded from the pharmacy till it reaches the patients. Along with that, it can also be a very effective way for pharmacies to manage their drugs from the manufacturer to their stores.

This way healthcare transparency will be enhanced and any drug counterfeit can be easily identified as every transaction is recorded with proof which cannot be manipulated. This way it will not only maintain the integrity of the supply chain but also better practices of healthcare data management.

One of the major benefits of implementing blockchain technology in healthcare is for its potential cost saving for both patients and providers. Along with that, it also prioritizes patient data protection with better healthcare data management.

Moreover, with a track of every record in efficient drug management the patient safety with repect to medication is also improved with reduced fraud. These are some of the benefits of blockchain for medical data transparency.

Empowering Patients with Ownership of their Medical Data

One of the major security questions of healthcare providers, ‘Can blockchain prevent medical identity theft?’ is answered with unparalleled security and robust encryption methods. However, blockchain healthcare also claims to give patients more control of their medical data.

Now, the question here is, how can patients control their medical data with blockchain?

Well, let’s simplify this!

The core of blockchain technology in healthcare is dependent on decentralized healthcare systems. Meaning that the patient’s system is also a part of the chain which can only be accessed by the patient only. This way blockchain technology in healthcare empowers patients to control their medical records and give access to their medical records to whomever they seem fit.

To simplify this, there are blockchain applications in healthcare data management, which makes it easier for them to share data. Along with that, blockchain technology can be used for clinical research as well. Now, you might ask, ‘What are the benefits of blockchain for clinical research?’

Well oftentime, when the patient data is collected by healthcare providers in their system, they are often used for clinical research for various purposes, which includes drug development, disease identification, etc.

Since this data is being used ethically, patients indirectly give providers the right to use that data. Well, here’s the twist, with blockchain healthcare, patients are actually in control of their medical data and know where the data is flowing and how it is being used. This way they can also charge the medical researchers money for using their data for clinical research.

Streamlining Clinical Trials and Research Collaboration

Clinical trials are purely based on data and before drawing conclusions and developing a product for effective use it needs to be tested. However, oftentimes it is the lack of data that researchers have to perform effective trials. This is where blockchain healthcare can come in handy. It allows patients and researchers to securely share data and conduct trails efficiently, along with automatically verifying the eligibility of the patient data that is being submitted.

This will not only help in effective healthcare data management but also help in speeding up the process of drug development or new treatments or even therapies.

Building a More Trusted Healthcare Ecosystem

Now that you’ve got an idea about how blockchain enhances security in healthcare let’s see how blockchain technology in healthcare can contribute to building a trusted healthcare ecosystem. Since it is based on the foundation of transparency, cryptography, and decentralized healthcare systems, it keeps the patients in control of their data.

Being in control of their personal healthcare data, they are in control with whom they can share their data and how it can be used. This way it improves trust in patients while sharing their data with providers or healthcare institutes. It not only instills healthcare transparency but also helps in improving collaboration between different stakeholders.

Along with that, the whole can be automated with the help of advanced blockchain healthcare technology which can reduce the burdens of healthcare staff and improve the overall efficiency of healthcare practices allowing them to focus more on patient care delivery rather than on repetitive administrative tasks.

However, given the evolving landscape of blockchain technology in healthcare, there needs to be some regulatory considerations to overlook medical data security, prioritizing patient data protection. If you’re a healthcare provider looking for custom healthcare software with blockchain healthcare, then complying with HIPAA and HITECH ACT would come in handy and help in building your reputation.