How to Implement Blockchain in Healthcare: Six Use Cases of Blockchain in Healthcare Apps

Having started as a purely fintech solution, blockchain penetrates other industries, including healthcare. By 2025, 55% of healthcare apps will use blockchain . Healthcare technology providers value the security, transparency, and reliability it offers. A custom solution tailored to the operational needs of a specific healthcare organization helps to deal with everyday challenges, from secure data storage to medical goods provenance. Want to know more about blockchain in custom healthcare software? Binariks healthcare development company shares blockchain use cases in healthcare below.

What is blockchain? How does it work?

Blockchain is a distributed system that records and stores transactions. It uses cryptographic techniques to allow every user in the network to contribute. Users can store, share, view information, or complete any other transaction. The completed interactions are known to all participants. Moreover, the network must verify them before adding any data. It enables trustless collaboration between the system users while keeping the trail of all interactions. Here’s how blockchain technology processes user transactions:

The main difference between a standard database and a blockchain system is the way to structure data. Blockchain technology puts data in groups (blocks) that store sets of information. They have a limited storage capacity and close after users reach it. When filled, the block links to the previous block, which forms what we call a blockchain. After that, no one can change it. This approach is the key secret behind the transparency of blockchain healthcare software vendors appreciate that much.

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Why Use Blockchain Applications in Healthcare Some things blockchain does better than other technologies. These benefits make it a preferred choice for technology companies across industries. In 2021, 45% of organizations worked on using blockchain for secure information exchange. Cross-border payments (15.9%) , provenance (10.7%), goods (8.8%) and identity management (7.6%) are some other common uses.

When it comes to blockchain technology in healthcare, it provides such opportunities as:

• Information tracking and registry. Immutable information recording eliminates asymmetric power over data and prevents misuse.
• Simplified data access and exchange. The traceability of changes allows optimizing data transfers between multiple users.
• Advanced authorization. Control over authentication and verification permissions helps additionally protect sensitive information.
• Reduced transaction costs. Near-real-time processing increases the efficiency of the systems and, therefore, cuts expenses.
• Disintermediation of trust. Since all system users can access the distributed ledger, you can ensure secure data sharing without complex brokered trust.
• Real-time payments and transactions. Blockchain technology enables quick and secure payments you can implement in healthcare systems.

These and other blockchain capabilities make it a dominating trend in the healthcare industry. After a sweeping success in finances and banking, the technology revolutionizes healthcare apps and patient experiences. The blockchain use cases in healthcare listed below show how versatile the applications are.

6 Top blockchain healthcare use cases

Would you like to reap the benefits of blockchain technology in healthcare? Analyzing blockchain use cases in healthcare is a great start. Check out the most common blockchain healthcare use cases to understand what you can get from this technology.

#1. Blockchain in healthcare for EHR systems

interoperability is a significant issue with electronic health records (EHR) and telehealth software . Whereas some hospitals use healthcare Epic cloud, others opt for CERNER and alternative solutions. As a result, patient information is often stored in incompatible systems, and patients have little access to their records across hospitals.

The use of blockchain in healthcare EHR systems allows us to create a single patient view and improve interoperability. The technology converts each new record related to the patient’s experience with the healthcare system (a prescription, a test result, scheduling , etc.) into a unique hash function. Only the owner of the data – the patient – can give permission to decode it. Every time the patient record is updated or the access permission is given, the system logs it as a blockchain transaction. It centralizes all related interactions around a single patient and offers patients more control over their data. They can instantly see any changes and updates.

#2. Secure data sharing in IoT Remote patient monitoring through IoT solutions

is one of the leading healthcare trends with 53% of hospitals having a remote patient monitoring system. It enables clinicians to automatically collect patient data and focus on critical medical decisions instead of reading documents. Yet, it also entails significant challenges. In one of our previous articles, we already talked about creating remote monitoring systems , so to learn how to avoid problems and do it successfully, check out our guide.

Data security remains a big issue with remote medical data transfers. Around 600 healthcare cyber attacks happen annually in the US only. To reduce the risk of data tampering and data sharing interruptions, healthcare organizations need reliable measures to prevent unauthorized access.

That’s when blockchain in healthcare can help. This technology ensures only permitted users access personal data through storing it as a unique hash function. It means that any change in source information creates a new hash function, and to decode it, a user must have specific cryptographic keys. The fact that blockchain is decentralized is another reason to use this technology for IoT security. Since decentralization enables direct interactions between IoT devices, performing a DDoS attack is difficult.

#3. Transparent supply chain and less counterfeit drugs

From 10 to 30% of pharmaceutical products are fake. The potential harm to people taking them and financial losses nudge pharmaceutical companies to find ways to check products' authenticity. The unique data tracking capabilities of blockchain technology may help solve this problem.

Blockchain allows tracking every drug from the moment the manufacturer produces it. The pharmaceutical company labels the product with a unique hash code stored on the blockchain. When later on, the wholesaler, pharmacists, or patient verifies the product, every transaction is also added to the blockchain with a timestamp. It ensures the quality of the supplied drug and enables traceability. Blockchain technology in healthcare can optimize any supply chain. The quality of medical devices, remote monitoring systems, and other products also requires tracking and validation.

#4. Smart contracts for easy insurance settlements

Healthcare insurance settlement is a complex process uniting many stakeholders. When they don’t have access to the same updated records, the percentage of disputed claims grows. Either insurers lack sufficient information or patients cannot understand what healthcare services they are eligible for. Smart contracts technology streamlines communication between patients, insurers, and healthcare organizations.

When a patient buys insurance using smart contracts, the policy details are automatically added to their profile. Therefore, all parties have the same source of information to rely on. Besides, smart contracts can automate the process of filing claims. If an insured person receives a medical procedure covered by their insurance policy, it automatically triggers the smart contract to transfer the necessary payment. Thanks to this, the insurance settlement procedure becomes faster and more accurate.

#5. Enhanced patient-doctor interactions and research opportunities

The use of blockchain for patient-centric EHRs and creating a single ecosystem enhances the communication between patients and doctors. With such software, users can grant clinicians immediate access to their health records from a mobile app. This feature ensures direct contact between the patients and their medical team while keeping information secure.

Patients can also give time-limited access permission to research institutions. It allows institutions to collect and process large volumes of anonymized data securely. Data sharing facilitates the research and helps develop more effective treatment options in the future.

#6. Blockchain applications in healthcare to verify medical staff credentials

Medical errors cause 9.5% of all deaths per year. That’s why tracking the authenticity of medical staff credentials is critical. With blockchain, it works similarly to tracking the provenance of medical goods. When a specific person receives any certification, a healthcare organization or medical institution logs it. With such a system, healthcare organizations have reliable information about their potential employees. It improves the overall quality of healthcare services and reduces the likelihood of medical errors.

Besides the listed use cases, blockchain technology facilitates record-keeping, allows you to achieve regulatory compliance , enables disease surveillance, and more. Consult with tech experts to know how you can apply it.

What’s the future of blockchain in healthcare?

Blockchain applications in healthcare are only paving their way. There are many cases when this technology can optimize software through transparency, traceability, and interoperability. Yet, software providers and startups are still looking for the best ways to implement it.

Hence, in the upcoming years, we will see many blockchain-based innovations. You should also expect a growing demand for software engineers who know how to work with blockchain. While this technology overtakes legacy alternatives with a lighting speed, only experienced tech companies can implement it right. Blockchain applications in healthcare require a custom approach and expertise many technology teams still don’t have.

Are you looking for a healthcare tech partner right now? Binariks is ready to share our expertise with blockchain in healthcare. We hire software engineers skilled in blockchain technology open to new challenging projects. They use the latest technology to create and test healthcare solutions for our partners worldwide.

Fill out the form to get in touch and discuss your healthcare software development project.