Blockchain’s use in healthcare is “essential” to protect sensitive data: Zelis CTO

Kali Durgampudi, CTO of healthcare payment company Zelis, believes that the implementation of blockchain technology is essential to protect patients’ sensitive data from cybercriminals.

In a conversation with Health IT News on July 20, Durgampudi noted that some of the biggest issues in healthcare are privacy and data security, as the industry works to digitize its “archaic paper-based processes.”

“Blockchain technology has the potential to alleviate many of these concerns,” he said, while highlighting the importance of using a digital ledger that is “impenetrable” to protect sensitive patient and financial data amid the increasing frequency of cyber-attacks across the globe .

“Since the information cannot be modified or copied, blockchain technology greatly reduces security risks, giving hospital and health IT organizations a much stronger line of defense against cybercriminals.”

Durgampudi went on to note that blockchain technology could also play a key role in healthcare, as it could help bring greater transparency and efficiency to current healthcare payment models. He said the many payers and providers were hesitant to share information via email because emails could go wrong and there was no proof of delivery.

“Blockchain gives both payers and providers complete visibility into the entire lifecycle of a claim, from the patient registering at the front desk to disputing a charge to sending an explanation of benefits,” he added.

Use in the real world

One of the major companies that has worked with blockchain-based health solutions is the multinational technology giant IBM.

The blockchain arm of the company has rolled out several solutions for healthcare, such as health credential verification, the ‘Trust Your Supplier’ service to find verified suppliers, and ‘Blockchain Transparent Supply’, which provides supply chain tracking of temperature-controlled pharmaceuticals.

In March 2021, Cointelegraph reported that IBM was working on a trial of a COVID-19 vaccination pass called the “Excelsior Pass” in collaboration with former New York Governor Andrew Cuomo. The passport was designed to be able to verify a person’s vaccination or test results by IBM’s blockchain.

Related: Blockchain Without Crypto: Adoption of Decentralized Technology

Another key player in the blockchain-based healthcare is the enterprise blockchain VeChain. Last June, the project partnered with Shanghai’s Renji Hospital to launch a blockchain-based in-vitro fertilization (IVF) service application.

VeChain also partnered with the Republic of San Marino in July 2021 to launch an NFT-based vaccination passport that was said to be verifiable worldwide by scanning QR codes attached to the certificate.

David Jia, who is a blockchain investor and holds a Ph.D. in neuroscience from Oxford University, echoed similar sentiments as Durgampudi this week.

In a July 21 blog post on Medium, Jia emphasized that blockchain technology could significantly improve the traceability and verification of drugs, along with the data processing of clinical trials, patient information and claims/billing.

– Accuracy in records in the long term as well as availability is crucial, as it is necessary that a person’s record can be relatively easily transferred between providers, insurance companies and specialists. If medical records are stored on a blockchain, they can be securely updated in near real-time,” he wrote.