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Using consortium blockchain in healthcare

Written by Kirsten Peremore | September 22, 2023

Consortium blockchains can be applied in various industries and use cases where multiple organizations collaborate and share data in a secure and controlled manner. 

 

Understanding private blockchain

In a consortium blockchain, multiple trusted organizations form a group (the consortium) and operate a shared digital ledger. Unlike public blockchains like Bitcoin, where anyone can participate, consortium blockchains are private and permissioned, meaning only pre-approved members can join the network. These organizations work together to validate and add transactions to the blockchain through an agreed-upon consensus mechanism. 

Each consortium member maintains a copy of the blockchain, ensuring transparency and decentralization within the group. Consortium blockchains are used for various purposes, such as secure data sharing, supply chain management, and collaborative research, enabling efficient and trusted interactions among the participating organizations.

See also: How often is HIPAA training required?

 

Why is consortium blockchain useful in HIPAA compliant organizations?

Shared data and interoperability

HIPAA compliant organizations often need to share patient data securely and efficiently for care coordination and research purposes. Consortium blockchains can enable these organizations to collaborate and share data within a controlled and trusted network. The blockchain's decentralized nature allows for data to be transparently shared among authorized participants, promoting better interoperability between different healthcare entities.

 

Privacy and control

Consortium blockchains offer a balance between data privacy and sharing. Participants in the consortium have control over who can access and view specific data, ensuring that sensitive patient information is protected and compliant with HIPAA regulations. Each organization maintains its copy of the blockchain, reducing the need for a central entity to handle and store sensitive data.

 

Auditability and compliance

Consortium blockchains maintain a transparent and auditable record of all transactions and activities within the network. This feature is necessary for HIPAA compliant organizations to demonstrate compliance during regulatory audits and investigations.

 

Efficient claims processing

Consortium blockchains can automate certain processes, such as insurance claims processing, through smart contracts. This can lead to faster and more accurate claim settlements while adhering to HIPAA guidelines.

 

Trusted network of participants

Consortium blockchains bring together trusted organizations that form a collaborative network. Participants are vetted and known entities, fostering trust among the organizations and reducing the risk of unauthorized access to patient data.

 

Resilience and fault tolerance

Like other blockchain networks, consortium blockchains offer resilience and fault tolerance. The distributed nature of the blockchain ensures that even if one node fails or is compromised, the data remains available and secure across other nodes.

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Examples of systems and software that can make use of consortium blockchain

  1. Electronic health records (EHR) interoperability: Consortium blockchains can facilitate secure and interoperable sharing of electronic health records among healthcare providers. Authorized providers can securely access and update patient health information across the network, leading to better-coordinated care and reduced duplicate tests.
  2. Clinical trials and research data sharing: Consortium blockchains can streamline data sharing and collaboration among multiple research institutions and pharmaceutical companies conducting clinical trials. The blockchain can ensure data integrity and immutability, increasing trust and transparency in research results.
  3. Medical supply chain management: Consortium blockchains can be used to track the provenance and distribution of medical supplies, pharmaceuticals, and medical devices. This helps prevent counterfeit products and ensures the authenticity of medical resources.
  4. Healthcare insurance claims processing: In the insurance domain, consortium blockchains can automate insurance claims processing between providers and insurers. This can expedite claim settlements and reduce administrative overhead.
  5. Identity and access management: Consortium blockchains can create a decentralized and secure patient identity management system. Patients can control their medical records and grant access to healthcare providers as needed, improving data privacy.
  6. Healthcare provider credentialing: Credentialing of healthcare providers can be made more efficient and reliable using consortium blockchains, enabling quicker onboarding and reducing administrative burdens.

See also: HIPAA Compliant Email: The Definitive Guide