Blockchain in Healthcare Will Live up to the Hype Versus Reality for Stakeholders
Payers, Providers and Pharma Emerge as Early Adopters, Creating the Much-Needed Network Effect to Promote Large-Scale Commercial Deployments, Finds Frost & Sullivan
With the healthcare industry increasingly going digital, blockchain technology provides the much-needed trust, security, and auditability for healthcare data on its intelligence journey, which allows blockchain to complement healthcare artificial intelligence (AI) and internet of things (IoT)-based data marketplace offerings. Early commercial success, mainly across select use cases such as health professional credentialing, medical billing management, personal health records (PHR), and pharma supply chain track-and-trace, will help this market cross $500 million by 2022 at a compound annual growth rate (CARG) of 61.40%. While payback may not be achieved for every dollar invested by 2022, a breakeven stage is expected.
“Health insurance payers, providers, and pharma companies are expected to adopt blockchain systems ahead of other healthcare industry stakeholders,” said Kamaljit Behera, Senior Industry Analyst, Transformational Health. “In the future, distributed ledger technology (DLT) will be leveraged by telehealth vendors and tech giants such as Apple, Amazon, Google, and Microsoft to monetize data science and analytical services with innovative patient-centric care models.”
Frost & Sullivan’s recent analysis, Global Blockchain Technology Market in the Healthcare Industry, 2018–2022, examines key growth opportunities and highlights key success factors and strategic imperatives for blockchain commercial deployment consideration in the healthcare space by assessing commercial partnerships. It also analyzes best-practice case studies for the identified growth opportunities.
In an emerging marketplace, the most successful blockchain technology providers will be those that:
- Explore applications like healthcare data infrastructure, health data access, on-demand healthcare, pharma drug supply chain, and identity management.
- Become a part of prominent consortiums such as synoptic, Hashed Health (Professional Credential Exchange), Insureum, and MediBloc among others.
- Engage with healthcare buyers as they undertake a thorough assessment of vendor solutions to invest in or engage with the most promising options.
- Target the United States market with payer- and provider-focused blockchain applications and countries such as Estonia, the United Kingdom, Switzerland, and South Korea with Blockchain-based PHR and patient identity applications.
- Establish a collaborative ecosystem for exploring and developing focused use cases and governance standards for future commercial scalability and success.
- The large-scale commercial deployment of PHR application seems more feasible in Europe and Asia where the healthcare data vendor ecosystem is relatively less complex compared to the US market.
- The interplay between three emerging technologies, namely Blockchain, Artificial Intelligence and IoT, will further catalyze the space of innovation adoption and related applications in the healthcare realm.