Global regulation of data has been in rapid development since the financial crisis, particularly in the area of structuring and reporting risk data. A lot of companies – especially smaller ones – have struggled to keep up with the aggregation and automation of data because of outdated IT systems, and are still relying largely on manual processes. Blockchain could change that.
How Will Blockchain Help Change the Landscape?
Management consultants, Oliver Wyman, propose that blockchain could be applied to the healthcare industry’s interoperability, particularly in relation to data ownership, security, and efficiency.
By its very design, blockchain data is shared. This means that regulators wouldn’t need to gather, store, reconcile and aggregate the information. Blockchain has a precise and secure distribution ledger that documents all transactions, and provides a permanent audit trail.
Having a single permanent record that can be shared would save costs right across the industry – relevant parties would no longer need their own individual records. Without reconciliation, the speed and quality of the regulatory review process would also be improved.
In context of data ownership, healthcare institutions and consumers would maintain control of their data. In relation to security, healthcare data that is currently unencrypted would be encrypted. While in efficiency, overheads could be reduced by using the likes of smart contracts. At the same time, Oliver Wyman believes this can only happen if some kind of governance can be agreed on.
It follows that such a foresight will influence a wide cross-section of healthcare industry players, from insurance providers to medical supply manufacturers. If one company successfully implements blockchain into its operations, will competitors be left in dust? It’s in the interest of these organizations to keep on top of potential changes, as well as what their competitors are doing. Going even further, it would be best if they start working it into their strategic planning sooner than later.
It’s unlikely that this will be the only innovation pushed by blockchain. Follow us on LinkedIn for more updates on healthcare, and wider insights from the market intelligence industry.
This article was originally published on ShiftCentral, now part of LAC Group.
Kristina Montgomery
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