What Is Blockchain Technology? 

A blockchain is a digital ledger that cannot be changed. Once information is on a blockchain, it becomes permanent. This makes blockchain a good technology for storing sensitive data.

How Can Hospitals Use Blockchain Technology?

There are many potential applications for blockchain technology in the hospital industry. Hospitals could use this technology to create a very secure environment for patient health information. For example, hospitals could use blockchain to store medical records, improve drug safety, track patient data, and streamline billing processes.

Here are the two most promising use cases today:

1. Storing Patient Health Records

One of the most promising applications of blockchain for hospitals is the storage of patient health records. Today, hospitals store patient health records in centralized databases. This system is not only inefficient, but it also puts sensitive data at risk of being hacked or leaked.

With blockchain, hospitals could store patient health records on a decentralized network that is secure and tamper-proof. Patients would have complete control over their own data, and they would be able to share it with any healthcare provider that they choose. This would not only make it easier for patients to get the care they need, but it would also help to prevent data breaches and other security threats.

2. Improving Drug Safety

Another way that blockchain could improve patient care is by helping to ensure the safety of drugs and other medical products. Hospitals could use blockchain technology to track these products from manufacturing all the way through dispensation at a pharmacy.

This would help to ensure that only safe and effective products are made available to patients. And it would give regulators and policymakers better visibility into how these products are being used. 

What Are the Benefits of Using Blockchain Technology for Hospitals?

There are many potential benefits of using blockchain in hospitals. For example, it could improve patient care by providing doctors with quick and easy access to medical records, reduce the risk of errors and fraud, and help protect patient privacy.

Let’s explore each of these benefits in more detail:

1. Improving Patient Care

One of the potential benefits of using blockchain is that it could improve patient care. Currently, hospitals often store medical records in centralized databases. This can make it difficult for doctors to access the records and provide the best possible care to their patients. 

If medical records were stored on a blockchain, they would be readily available to doctors and other medical professionals. This would allow for quicker decisions and more efficient care.

In addition, it would allow doctors to access their patients’ complete medical records, potentially improving diagnosis and treatment plans.

2. Reducing Fraud and Error

Using blockchain could also help hospitals reduce fraud and error. Currently, there is a risk of fraud when billing insurance companies for treatments that were never provided. There is also a risk of error when manually entering data into patient files.

These risks could be reduced if all data were stored on a blockchain, as the data would be tamper-proof and immutable. 

3. Protecting Patient Privacy

Another potential benefit of using blockchain technology is that it could help hospitals protect the privacy of patient data. Currently, patient data is often stored in centralized databases, which makes it vulnerable to hacking and data breaches.

Storing data on a blockchain would help improve security. This is because the data would be dispersed across multiple computers rather than being stored on one central server.

What Risks Do Hospitals Face When Trying to Use Blockchain Technology?

There are 5 major drawbacks to using blockchain for hospitals:

1. Blockchain is still a relatively new technology. Many people still do not understand how it works.

2. Because of the way blockchain works, modifying or deleting information is difficult. This could create privacy and security concerns for patients and healthcare providers.

3. The high energy requirements of blockchain could make it prohibitively expensive to use in hospital settings.

4. There are concerns that the complex cryptography used in blockchain could make it difficult for patients and healthcare providers to access needed information.

5. Using blockchain in the healthcare industry could lead to information silos. That is, if different hospitals are using different blockchains, it could become difficult for them to share information.

Final Thoughts

As the healthcare industry continues to face mounting cybersecurity threats, some hospitals are beginning to experiment with blockchain technology as a way to protect patient data. While there are some potential drawbacks, the benefits make it worth exploring as a potential solution.