It is interesting to note that Healthcare IT spending is projected to reach $570 billion by 2027. That's a massive CAGR of around 21% from 2023! As per a report by Gartner Research, the driving forces behind this spending include:
- Rising demand for digital transformation.
- Adoption of electronic health records.
- Need for efficient healthcare systems.
Read our previous blog, 5 Important Breakthroughs In Healthcare Tech
In this digital age, Blockchain as a Service (BaaS) is emerging as a game-changer for the healthcare industry, revolutionizing patient care, data security, and interoperability.
In this article, we will explore What is BaaS, Why is Blockchain important for healthcare?, How is BaaS being used in healthcare?, What is the future of BaaS in healthcare? and the Challenges of BaaS Adoption in Healthcare.
What is BaaS?
Blockchain as a Service (BaaS) is a cloud-based service that provides a platform for building, testing, and deploying blockchain applications.
BaaS allows users to develop and manage blockchain networks without the need for technical expertise or the costs associated with setting up and managing their own blockchain infrastructure.
Who Can Benefit from Blockchain as a Service in Healthcare?
BaaS is expected to push the value of the blockchain in the healthcare market to $4.46 billion in 2026, with a compound annual growth rate (CAGR) of 38.1%.
Blockchain technology can have a huge impact on the healthcare industry. Healthcare organizations that can benefit from BaaS include hospitals, pharmaceutical companies, research organizations, and government agencies.
BaaS can help these organizations overcome several challenges, including interoperability, data privacy, security, and patient care.
Use Cases of BaaS in the Healthcare Industry
Blockchain as a Service has multiple use cases in the healthcare industry.
Electronic Health Records (EHRs)
EHRs are the backbone of the healthcare system. Blockchain technology can help to securely store and manage EHRs, ensuring patient data privacy and interoperability.
Patients can control who can access their data. Additionally, blockchain-based EHRs can help to prevent medical errors by providing accurate and up-to-date patient information.
Drug Traceability
Pharmaceutical companies can use blockchain technology to track drugs from the manufacturing stage to the end consumer. This will help to prevent counterfeit drugs from entering the market, ensuring patient safety.
Additionally, blockchain technology can be used to track the effectiveness of drugs and identify any side effects.
Clinical Trials
In the drug development process, Clinical trials play a critical role. Blockchain technology can help to ensure transparency and data integrity in clinical trials.
Researchers can use blockchain-based platforms to securely store and manage trial data. It ensures that the results are accurate and tamper-proof.
The Benefits of BaaS in Healthcare
We'll discuss some of the main benefits of blockchain in the healthcare industry.
Improved data management
The healthcare industry generates vast amounts of data, and managing this data efficiently and securely is critical to delivering quality patient care.
BaaS can help healthcare organizations to manage and share data securely and efficiently across different stakeholders.
With BaaS, patient data can be stored on a decentralized blockchain network, ensuring that it is accessible to authorized parties while maintaining the privacy of patients.
Gem launched Gem Health Network, a network for developing applications and shared infrastructure for healthcare powered by the Ethereum blockchain. It has also announced that Philips Blockchain Lab, the R&D center of healthcare giant Philips, is the first major healthcare operator to join the Gem Health Network.
Gem Health Network is a blockchain platform that allows healthcare organizations to securely share and manage data across different stakeholders.
The platform uses BaaS to provide a tamper-proof system for storing and sharing data. It ensures that unauthorized parties can't tamper with the data.
Enhanced security
The healthcare industry is a prime target for cyberattacks due to the sensitive nature of patient data. BaaS can help healthcare organizations secure patient data by providing a tamper-proof and transparent system for storing and sharing data.
With BaaS, patient data is encrypted and stored on a decentralized blockchain network. It ensures that unauthorized parties can't tamper with the data.
MedRec is a blockchain-based medical record management system that allows patients to securely access and manage their medical records. Only authorized parties can access the patient data. Using BaaS, MedRec has reduced the time it takes to access medical records from several days to seconds.
Guardtime is a blockchain-based platform that aims to improve the security and integrity of electronic health records.
Guardtime's KSI (Keyless Signature Infrastructure) blockchain-based solution is used to secure and manage the health records of over a million people in Estonia. The KSI blockchain ensures that the data in the health records are tamper-proof and secure.
Improved patient outcomes
BaaS can help to improve patient outcomes by enabling healthcare organizations to better manage and coordinate patient care. With BaaS, you can securely share patient data with different stakeholders, such as doctors, hospitals, and insurers.
This can help to ensure that patients receive timely and coordinated care, leading to better health outcomes.
MediLedger is a blockchain-based platform that enables pharmaceutical manufacturers to track their products throughout the supply chain, helping to prevent counterfeit drugs from entering the market.
The platform was launched by a consortium of pharmaceutical companies, including Pfizer and Walmart, in response to the Drug Supply Chain Security Act (DSCSA).
MediLedger uses blockchain technology to create an immutable record of every transaction that takes place in the supply chain, making it easy to trace the origin of any drug that enters the market.
Efficient Supply Chain Management
The healthcare industry's supply chain is complex, involving multiple parties, including suppliers, manufacturers, and distributors.
BaaS makes it easier to monitor the movement of drugs and medical devices, ensuring their authenticity and safety.
Medicalchain is a blockchain-based platform that aims to provide patients with greater control over their health records. The platform helped in reducing the time it takes to access medical records from weeks to seconds.
In May 2019, Medicalchain announced the launch of MyClinic.com. MyClinic, a telemedicine website, allows patients to video meet with their physicians and pay for such appointments with "MedTokens".
Challenges of BaaS Adoption in Healthcare
Although BaaS has the potential to revolutionize the healthcare industry, there are some challenges in the adoption of blockchain.
Integration with Existing Systems
Many healthcare organizations have legacy systems that are not designed to integrate with new technologies. This makes it difficult to adopt BaaS solutions due to the significant costs associated with system upgrades.
Data Privacy and Security
While blockchain technology provides a secure and tamper-proof ledger, healthcare organizations must ensure that patient data is encrypted and accessible only by authorized parties.
Interoperability
Different healthcare organizations may use different software and data storage systems. It makes it difficult to share data across the healthcare ecosystem.
Regulatory Compliance
Healthcare is a highly regulated industry, and implementing new technologies such as BaaS requires adherence to a variety of regulations such as HIPAA, GDPR etc.
BaaS is transforming the healthcare industry by enabling healthcare organizations to improve data management, increase security, and enhance patient outcomes.
Through the use of distributed ledgers and smart contracts, BaaS solutions offer multiple benefits for the Healthcare industry that outweigh the challenges in the adoption of BaaS.
As healthcare providers continue to face increasing pressure to improve patient outcomes and reduce costs, the adoption of BaaS may become a necessity rather than a luxury.
Read our blog about 5 Myths and Facts Surrounding Blockchain !