Bob Krohn, partner and health practice, leads technology research and the Information Services Group consulting firm in Stamford, Connecticut, discusses the blockchain as an emerging trend in the healthcare industry and what regulations technology is ready to tackle.
The answers have been slightly modified for clarity and length.
Question: where is now the blockchain in the health sector and how will it develop in 2019?
Bob Krohn: Compared to other sectors, health investment in blockchain has remained substantially behind. As we look at 2019, we see the blockchain as the emerging trend in healthcare technology. Most large healthcare providers, hospitals and healthcare systems include the value that can be unlocked via blockchain and are actively investing in pilot projects or solutions.
Smart leaders in hospitals and healthcare systems understand that we can learn a lot from our colleagues in life sciences and pharmaceuticals. At the end of 2018, we witnessed a paradigm shift in the alignment between companies in the health and life sciences sectors on the theme of blockchain. Companies have started to align themselves with the help of knowledge sharing points including, for example:
Distributed health– A consortium and blockchain event in the industry that reached more than 500 participants in November 2018. The companies represented as speakers and presenters included Anthem, Humana, Change Healthcare, TIBCO Software, Pfizer, Amgen and Novartis.
MediLedger– An industry consortium set up to address the FDA's drug supply chain security law. The DSCSA outlines the requirements for organizations to develop and improve the safety of the drug supply chain by 2023. With an emphasis on the use of blockchain technology to track and track the origin of prescription medicine across the supply chain, the MediLedger consortium includes noteworthy members such as AmerisourceBergen, Genentech, Pfizer, Gilead Sciences and McKesson Corp.
Q: What do you think will be the most significant blockchain applications in the healthcare sector over the next five years?
BK: One of the most interesting applications of the blockchain in 2019 will be in the EMRs. Once EMR is complete, blockchain technology can seamlessly communicate this information to the parties involved. When a blockchain solution is implemented correctly, it provides verifiable evidence that the contents of a medical record have not been altered. The potential for improved efficiency and savings among taxpayers, hospitals and healthcare systems could amount to billions of dollars.
It is also important to note in 2019 that organizations will begin to understand the value of blockchain solutions in addressing the FDA's DSCSA requirements as they relate to the pharmaceutical supply chain. From manufacturers to distributors and dispensaries, organizations that comply with DSCSA and blockchain thinking leaders will begin to gain competitive advantages within those industry colleagues who lack awareness or understanding of market trends and actively developed solutions.
Q: What do the blockbenches of blockchain hospitals and healthcare systems know today?
BK: Although blockchain is still relatively immature in our industry, IT leaders in hospitals and healthcare systems need to understand that it is coming and will have a transformative effect. It is very likely that someone inside the organization is exploring blockchain technology. Many of the leaders with whom we are actively working on blockchain are outside traditional IT organizations and are in business strategy or supply chain roles. IT leaders should reach blockchain thought leaders and get aligned on a formalized strategy. This strategy should take into account lessons learned from other areas. If you are a manager of a hospital or a small and medium-sized health care system, you should carefully monitor your broader competition and plan accordingly.
As noted above, it is important for hospital and health system leaders to realize that the FDA DSCSA will have a direct impact on the way they operate, with a compliance deadline of 2023. Each hospital can be considered a dispensary of drugs – and therefore considered in the same group of retail dispensaries that includes CVS, Walgreens, etc.
To attend the future Becker question and answer session, contact Jackie Drees at [email protected].
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