The blockchain in healthcare industry is estimated to grow from $176.8 million in 2018 to over $5.61 billion in 2025 according to a market report from BIS research. Expected to grow at a compound annual growth rate of 63.85% in this time frame, this industry will likely have a dramatic impact on the medical community in the near future.
“The blockchain in the healthcare market is going to be driven by the urgent need to improve interoperability and security of the healthcare information systems,” says Pushplata Patel, an analyst at BIS Research. “Around 14% of healthcare organizations are expected to have a blockchain-based system in place by the end of 2018, while 70% are expected to have invested in getting the technology on-board by 2020.”
The Power of Blockchain in Healthcare
Blockchain technology has the power to reshape healthcare information systems and data sharing processes. One of the biggest advantages of using blockchain is the elimination of third-party intermediaries, which decentralizes records, facilitates operational processes, and greatly reduces transactional costs.
Adoption of blockchain could potentially save the healthcare industry up to $100-$150 billion per year in costs related to data breaching, IT, operations, support functions, and personnel by 2025. In addition, this technology could cause a considerable reduction in fraud and counterfeit products.
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Pharmaceutical companies stand to benefit the most from blockchain, being that they lose roughly $200 billion a year due to counterfeit drugs. By allowing for complete visibility and transparency in the drug industry, blockchain will allow drugs to be tracked precisely in the shipment process. This will help combat counterfeit medications and save pharmaceutical companies $43 billion a year in losses.
The area of blockchain that will contribute most to this market share is data exchange. The use of blockchain for healthcare data exchanging is expected to reach a value of $1.89 billion by 2025. By digitally storing trusted healthcare records without the need of a centralized party, blockchain allows for the validation of clinical credentials between multiple physicians. This would greatly improve the current system, in which doctors must often go to great lengths to gather bits and pieces of patient data. Blockchain also holds utility in research by providing more public records of data and activity, allowing researchers to better communicate and replicate different studies.
“Various successful use-cases of blockchain have already been piloted, ranging from tracking of consent in clinical trials, development of healthcare information exchange platforms, to pharma supply chain solutions,” explains Patel. “Healthcare data exchange, health insurance, and clinical trials are expected to witness large disruption in the coming years.”
Date: September 04, 2019
Source: Docwire News