Could crypto be the new currency of healthcare?

It’s not just about paying ransom for healthcare data. Cryptocurrencies have become an aspect of healthcare consumerization that not many people realize.

On the darker side, no one would argue that crypto is the payment method of choice for data hostage-takers. Electronic transfers to blind accounts are long gone and even crypto payments have become more sophisticated given the cybersecurity arms race between governments and the bad actors

But there is another side of this blockchain-protected currency that is much less stealthy and is in fact quite civilized, albeit a bit on the fringe.

One of the reasons why crypto and healthcare have co-evolved starts with the fact that blockchain platforms already protect clinical and financial data in healthcare based on its complicated and sometimes mysterious digital ledger system — despite having it explained hundreds of times, I would not want to be called on to give a cogent definition of blockchain for the laymen; as a foodie, one of the best comparative explanations I’ve heard is taking a pig, grinding it into SPAM in a can, and then making it a live pig again when needed.

Cryptocurrencies essentially use a variety of blockchain flavors that have evolved into the largely unregulated confederation of anonymous accounts.

Blockchain technology, the underlying system that powers cryptocurrencies like Bitcoin and Ethereum, is promising for healthcare IT. Blockchain can securely store patient records, ensuring that data is tamper-proof and only accessible to authorized individuals. This could drastically reduce the risk of data breaches and ensure patient privacy. For example, a patient’s medical history stored on a blockchain could be quickly and securely accessed by any healthcare provider, facilitating better and faster care coordination.

Also, cryptocurrency can streamline payment systems within the healthcare sector. Traditional payment methods often involve multiple intermediaries, leading to high transaction costs and delays. Cryptocurrencies can facilitate instant and low-cost transactions, enabling faster payments to healthcare providers and reducing administrative burdens. This is particularly beneficial in global health contexts where cross-border payments can be complex and costly.

Furthermore, the use of smart contracts — self-executing contracts with the terms directly written into code — can automate many administrative processes in healthcare. For instance, insurance claims could be automatically processed and settled when predefined conditions are met, reducing the need for manual intervention and expediting the claims process. This not only enhances efficiency but also minimizes errors and fraud.

Cryptocurrencies can also incentivize healthy behaviors. Some health and wellness platforms are leveraging tokens to reward users for achieving fitness goals or participating in health-related activities. These tokens can be redeemed for various services or products, motivating individuals to maintain healthier lifestyles.

Crypto and blockchain adoption

Despite these advantages, the integration of cryptocurrency in healthcare faces challenges, including regulatory uncertainty, technological barriers, and resistance to change. Ensuring compliance with healthcare regulations, such as HIPAA in the United States, is crucial to protecting patient data. Additionally, the volatility of cryptocurrencies can pose financial risks.

While still in its early stages, the application of cryptocurrency in healthcare holds significant potential to enhance security, efficiency, and patient engagement. As technology and regulatory frameworks evolve, its adoption could lead to substantial improvements in the healthcare landscape.

Cryptocurrency and blockchain technology are being adopted by healthcare consumers in various innovative ways, including these five notable applications:

1. Secure and Private Health Data Management Healthcare consumers are using blockchain technology to securely store and manage their personal health records. Platforms like Patientory and Medicalchain allow patients to control access to their health data, ensuring privacy and security. By using blockchain, consumers can share their medical information with healthcare providers without the risk of data breaches or unauthorized access.
2. Transparent and Efficient Payments Cryptocurrencies facilitate faster and more transparent payments in healthcare. Patients can use cryptocurrencies to pay for medical services, reducing transaction fees and delays associated with traditional banking systems. This is particularly useful for international payments, where cross-border transactions can be costly and time-consuming. Platforms like Dentacoin specifically cater to dental care payments using cryptocurrency.
3. Incentivized Health and Wellness Programs Some health and wellness platforms are leveraging cryptocurrencies to incentivize healthy behaviors. Consumers can earn tokens for activities such as exercising, adhering to medication schedules, or participating in wellness programs. These tokens can then be redeemed for rewards or services. For example, platforms like Lympo and Sweatcoin reward users for their physical activity, encouraging a healthier lifestyle.
4. Telemedicine and Remote Consultations Blockchain technology enables secure and private telemedicine consultations. Consumers can use platforms that support cryptocurrency payments to access telehealth services, ensuring that their health information is protected during online interactions. This is especially beneficial for those in remote or underserved areas who may have limited access to in-person healthcare services.
5. Health Insurance and Claims Processing Cryptocurrencies and blockchain can streamline health insurance processes, making them more efficient and transparent. Consumers can use blockchain-based platforms to manage insurance policies and process claims automatically through smart contracts. This reduces administrative overhead, speeds up claim settlements, and minimizes the risk of fraud. Solve.Care, for instance, uses blockchain technology to simplify interactions between patients, insurers, and healthcare providers.

These applications demonstrate how cryptocurrency and blockchain technology are empowering healthcare consumers by providing secure, efficient, and transparent solutions for managing their health and wellness.