4 Key Trends Driving the Adoption of Blockchain Technology in Healthcare
The deployment of blockchain in healthcare has gained significant momentum in recent years due to the growing need to store scalable data and secure healthcare data exchange. Both developed countries, as well as emerging ones, have been focusing on the implementation of the technology in healthcare systems.
In July 2020, China launched two blockchain platforms in the cities of Fuzhou and Kunshan focusing on medical billing and prescriptions respectively. The move aims to augment the growing role of technology in Chinese healthcare.
According to a new research report compiled by Global Market Insights, Inc., global blockchain technology in the healthcare market size will hit an annual valuation of US$1.6 billion by 2025. Let’s take a look at some of the top trends driving the adoption of blockchain in healthcare.
- Need for reliable healthcare data management
Over the past few years, the need for the centralization of a secure platform for healthcare data management across healthcare institutions has increased significantly. Blockchain enables organizations to enhance data security and maintain reliable access to independent data. Several healthcare service providers are implementing the technology to record, store, analyze, and monitor patient data accurately and securely.
The software program interface used for the storage of confidential healthcare data usually has a minimum interoperability level. Blockchain companies are introducing technologically advanced and easy-to-handle cyber risk solutions with operational integration in order to gain a competitive advantage.
- Growing adoption among pharmaceutical companies
In terms of the end-user, revenues from the pharmaceutical companies segment were estimated to be worth US$21.5 million in 2018. Since pharmaceutical companies have more complex processes, the need for blockchain to ensure compliance in the supply chain, improve financial aspects, and maintain R&D outcomes of pipeline drugs.
These companies also need the technology to improve verification or report on drugs and transparency and trackability in clinical trials. Pharmaceutical companies are increasingly adopting blockchain technology to improve the financial and operational aspects of business. In August 2019, IBM, FDA, Merck, KPMG, and Walmart had collaborated on a blockchain pilot project to track pharmaceuticals.
- Wide use in claims adjudication and billing management
In the healthcare sector, blockchain is used in claims adjudication and billing management, data exchange and interoperability, drug supply chain integrity, cybersecurity, clinical trials, and the internet of medical things. The demand for blockchain technology in healthcare across claims adjudication and billing management application is projected to grow at a massive 66.5% CAGR through 2025.
This can be attributed to the growing risk of duplication and filing of process forms. The lack of recognition systems for billing management has increased the need for reliable identification systems. The upcoming years are poised to witness the growing application of blockchain in maintaining service vendor data as well as other use-cases.
- Ongoing research and development in the U.K.
From a geographical point of view, U.K. blockchain technology in the healthcare industry share is projected to experience a substantial CAGR of 61% through 2025. The regional growth can be associated with a large number of research and development facilities that are constantly exploring ways to implement centralized mechanisms for greater transparency.
Blockchain offers high value to clinical researchers to maintain medical and patient outcome data with the implementation of proof of concept. Growing demand for proof of concept and interoperability in research and development centers will complement the regional outlook.
The lack of awareness in several developing countries and high implementation and maintenance costs may affect the industry forecast slightly. However, the rapid adoption of advanced technologies for operational feasibility across the healthcare sector will bolster blockchain in the healthcare industry outlook.
A graduate in electronics and telecommunication engineering, Hrishikesh Kadam has always found writing fascinating. Driven by a never-ending passion for content creation combined with a bit of experience in writing personal blogs, Hrishikesh blends his technical knowledge and expertise to pen down articles for numerous online portals.
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