At present, many healthcare establishments use database management systems to record the health details of patients. Enterprises also spend substantial resources on maintaining and protecting these database systems against external threats or malicious attacks.
However, patients do not certainly acquire medical assistance from one particular institution and the clinical data of a patient remains scattered across the databases of several healthcare institutions. Usually, a patient looking for medical support from another healthcare institution acquires all records from previous institutions and offers them to the new institution. Data being collected and distributed in this manner may lead to data loss or data inconsistency. Therefore, healthcare institutions can use Smart Contracts to store data on a Blockchain platform over a distributed ledger.
Before we explore the Ethereum Smart Contracts healthcare benefits and use cases, let’s understand the present healthcare system challenges:
Existing Healthcare System Challenges
The present healthcare system relies heavily on the communication between physician and patient and works using limited data. This limited aspect of healthcare brings about an unexceptional healthcare system that keeps deteriorating due to the non-exploitation of data and non-effective treatment of the patient.
- Drug Counterfeit – It is one of the leading challenges as it causes massive losses for the entire healthcare industry due to late supply of drugs, non-compliance with regulations, and manipulated prices. The current supply chain systems are incapable of reducing drug counterfeiting practices.
- Inadequate Data Segmentation and Management – The current healthcare sector fails largely due to inadequate healthcare data maintenance. Critical data about patients remain highly distributed across the systems and departments. Therefore, physicians have no way to acquire the right information at the right time.
- Data Storage and Security – One of the prevailing challenges that the traditional healthcare system has to deal with is the embezzlement of healthcare data. The data is mostly misused by hackers. The reason why healthcare management and patient data are vulnerable to hackers is due to the usage of outdated systems like data silos that are not linked with most of the healthcare applications and systems.
Smart Contracts can comprehensively transform the healthcare ecosystem. It can help the healthcare industry overcome the above-mentioned challenges by improving integrity, security, interoperability, and traceability. By associating with the best Smart Contract development company, healthcare businesses can largely improve the current healthcare condition.
What are Ethereum Smart Contracts?
Ethereum is a well-known decentralized Blockchain platform. This decentralized platform offers several functionalities like Smart contracts, Ethereum Virtual Machine, Decentralized applications (Dapps) development, democratic decision making, etc. Moreover, Ethereum is an open-source Blockchain platform and is widely used by businesses to execute transactions using the popular cryptocurrency known as Ether. Ethereum supports the Smart Contracts and applications built on its Blockchain to operate seamlessly without human control, fraud, downtime, or any intermediary interference. Programmers highly prefer writing Smart Contracts on top of Ethereum Blockchain.
A Smart Contract is a mix of programs and tools that can automatically perform transactions when certain conditions are met without involving an intermediary person or company. They can also streamline a workflow, generating the next event when conditions are met. Smart Contracts are often developed using Ethereum rather than Bitcoin, as it allows for the well-organized and decentralized operation of Smart Contracts. An Ethereum Smart Contract model consists of:
- Participants – are guarantors of the contract. They usually use digital signatures to imply their consent to the prescribed terms as well as the acknowledgment or non-acceptance of the contractual or performance terms.
- The subject of the contract or agreement
- Terms and conditions
Benefits of Ethereum Smart Contract Development for Healthcare
Ethereum Smart Contracts offer better interoperability, which eventually modernizes the healthcare industry. It enables advanced data protection, smooth drug approval control, and medical product and tool monitoring. Besides, businesses can hire the right Ethereum Smart Contract development company to build contracts that provide a secure digital space capable of recording and authenticating patient data as well as offering public access to all clinical information. Let’s look at some of the benefits of Ethereum Smart Contracts below:
Enhanced Protection and Custom Authorization
Healthcare institutions can trust that their data is protected on the enterprise-grade Blockchain. The transparent infrastructure of Ethereum means that anything recorded on the contract is nearly impossible to exploit or access. The secure authorization and privacy layers of the Ethereum Smart Contract will allow healthcare institutions to customize the security controls as per requirements.
Superior Trust at a Lower Cost
Smart Contracts considerably reduce the expense of partnership and confidence that has previously been expensive for companies. The robust and consistent ledger of Ethereum makes it essentially easier for the various participants in the healthcare management to access data and accomplish contracts.
Improved Performance
Ethereum acts as a distributed network where only registered participants can share data and transact information. Ethereum Smart Contract solutions help to modernize and automate practices such as bill facilitation, ID checking, and judicial arbitration.
Access to Resources and Reports
Ethereum Smart Contracts provides universal access to all its authorized parties. It is not based on a central authority. Authorized physicians or medical experts can easily access data whenever required, irrespective of geographic and location boundaries.
Use Cases of Ethereum Smart Contracts in the Healthcare Sector
Health Insurance
Ethereum Smart Contracts can allow patients to buy healthcare insurance policies using Smart Contracts. In general, patient's health data will be recorded on Ethereum Blockchain. Based on permissions given, the data can be easily shared with the hospital where the patient decides to acquire treatment.
Likewise, the relevant data of the medicines prescribed, and treatment provided to the patient will be stored on Ethereum Blockchain and can be shared by the healthcare institutions and medical labs with the insurance company. The processes like disbursement of the bills of the pharmaceutical store, hospital, and request generation of insurance claims and compensation by insurance firms can be entirely automated, reducing the necessity for filing separate claims. Ethereum Smart Contracts help accelerate processing times, reduce fraud risks, and save time and money for health insurance service providers.
Patient Data Management and Transferring
Ethereum Smart Contracts offer an effective way to organize patient data management. It delivers a structured approach to recording data that will be accessed by the right professionals in the future. A patient’s data can be recorded on the Ethereum Blockchain and can only be kept accessible to the patient and the doctor who is providing the treatment. This ensures appropriate collaboration and doctors can also request and share data whenever possible.
As data is recorded on the distributed digital ledger in Smart Contracts, patients looking for a transfer to other medical institutions or further treatment will be able to easily shift to hospitals and doctors without the need to physically share their health information and fill out several forms. Moreover, patients can also share their information without revealing their identity.
Medical Research
The patient data can be easily shared by clinics, hospitals, and pharmaceutical companies to support medical research institutions to perform in-depth research and observe the patient's progress. Smart Contracts could be very beneficial in managing major healthcare crises caused by pandemics and epidemics and can be used to track and execute effective vaccination campaigns.
Reduce Drug Counterfeiting
As transactions on Ethereum Smart Contracts are irrevocable and immutable, the drug control authorities and pharmaceutical enterprises can be supported by the technology to categorize each drug, confirm its authenticity, monitor its journey from producer to the patient, and thereby track, and eliminate the use of counterfeit drugs.
Seamless Supply Chain Management
It has been estimated that around 31% of drugs transported across the world are damaged due to shipping errors and temperature deviations. This creates a major loss for pharmaceutical companies and also impacts the patients. Therefore, companies can use Ethereum Smart Contracts to discover contamination of such drugs with step-by-step monitoring of cold chain sensor data from production to delivery. If drugs or medical products undergo temperature exposure or cargo experiences path deviation, the damages can be identified & recovered at the earliest and the financial accountability of the concerned party can be resolved.
Wrapping Up
Smart Contracts built around Ethereum hold incredible potential for transforming any sector. The healthcare sector can benefit from virtual data sharing, monitoring, and regulation of healthcare services and products. Besides, patients can benefit from advanced interoperability. Overall, Ethereum Smart Contracts solve healthcare supply chain challenges, guarantees information security, and improves scalability, and reliability.
