Free EMR Newsletter Want to receive the latest news on EMR, Meaningful Use, ARRA and Healthcare IT sent straight to your email? Join thousands of healthcare pros who subscribe to EMR and HIPAA for FREE!!

Could Patents Freeze Blockchain’s Progress?

Posted on March 6, 2017 I Written By

Anne Zieger is a healthcare journalist who has written about the industry for 30 years. Her work has appeared in all of the leading healthcare industry publications, and she’s served as editor in chief of several healthcare B2B sites.

Everywhere you look, somebody’s talking about blockchain technology and its amazing future. In fact, the healthcare industry is engaging in perhaps the most aggressive blockchain deployments of any industry, according to Deloitte.

Originally, blockchain was an open-source platform, freely available to anyone who wanted to use it. But that could soon change, if a new item from Reuters is any indication.

According to the news service, Aussie computer scientist Craig Wright – who claims to be the pseudonymous “Satoshi Nakamoto” responsible for the technology – is working with Canadian online gambling entrepreneur Calvin Ayre to patent aspects of bitcoin/blockchain tech.

To date Wright, who’s being funded by the wealthy Canadian, has filed more than 70 patent applications in Britain in cooperation with associates. This may not sound like a big deal, but it is, considering that only 63 blockchain-related patents were filed globally last year, according Reuters.

Not only that, Wright plans to file many more, Reuters research has concluded. The patent applications include approaches specific to healthcare, including storage of medical documents. Ultimately, Wright and his partners plan to file as many as 400 patent applications, the news service reports.

Ayre is investing in blockchain largely because he sees it as a good fit with the gambling business. And that serves Wright’s interests, which have included online gambling for decades. In fact, Reuters notes that the bitcoin code base contains unimplemented functions related to poker. So it makes sense that he wants to lock it down and own it.

That being said, it seems unlikely that well-funded corporate interests – including healthcare organizations – are going to just sit back and ignore these developments. After all, companies spent more than $1.5 billion on blockchain technology during 2016, and they’re likely to scale up further this year. In other words, they’re not going to let go of blockchain technology without a fight.

Also, it’s worth noting that none of the 70 existing patent applications have been granted to date, and according to Reuters it’s not clear if they’ll even be enforceable if they are.

Finally, Ayer’s history in the U.S. raises questions as to whether he’s completely above-board. In the past, most of his online gambling revenue came from the U.S., a highly-lucrative business which made him extremely rich. But offering such a platform was and is illegal in many states, and as a result one of the states (Maryland) indicted his online gambling network Bodog, Ayer himself and four other people. The case is still pending.

All told, it doesn’t seem likely that health IT organizations need to drop their blockchain plans anytime soon. But it’s worth bearing in mind that blockchain development may be more complicated – and more expensive – in the future.

Confusing HIPAA Compliance With Security

Posted on October 2, 2014 I Written By

Anne Zieger is a healthcare journalist who has written about the industry for 30 years. Her work has appeared in all of the leading healthcare industry publications, and she’s served as editor in chief of several healthcare B2B sites.

Most people  who read this publication know that while HIPAA compliance is necessary, it’s not sufficient to protect your data. Too many healthcare leaders, especially in hospitals, seem satisfied with the song and dance their cloud vendor gave them, or the business associate that promises on a stack of Bibles that it’s in compliance.

I was reminded of this just the other day when Reuters came out with some shocking statistics. One particularly discomforting stat it reported was the fact that medical data is now worth 10 times more than your credit card number on the black market (even if John has argued otherwise). Why? Well, among other things, because medical identity theft isn’t tracked well by providers and payers, which means that a stolen identity can last for months or years before it’s closed down.

Healthcare is not only lagging behind other industries in terms of its hardware and software infrastructure, but the extent to which its executives give a care as to how exposed they are to a breach. Security experts note that senior executives in hospitals see security as a tactical, not a strategic problem, and they don’t spend much time or money on it.

But this could be a deadly mistake. As Jeff Horne, vice president at cybersecurity firm Accuvant, noted to Reuters, “healthcare providers and hospitals are just some of the easiest networks to break into. When I’ve looked at hospitals, and when I’ve talked to other people inside of a breach, they are using very old legacy systems – Windows systems that are 10+ years old that have not seen a patch.”

As if that wasn’t enough, it’s been increasingly demonstrated that medical devices — from infusion pumps to MRIs — are also frighteningly vulnerable to cyber attacks. The vulnerabilities might not be found for months, and when they are, the hapless provider has to wait for the vendor to do the patching to stay in FDA compliance.

So far, even the biggest HIPAA breaches — notably the 4.5 million patient records stolen from hospital giant Community Health Systems — don’t seem to have generated much change. But the sad truth is that unless hospitals get their act together, focused senior executive attention on the issue, and spend enough money to fix the many vulnerabilities that exist, we’re likely to be at the forefront of a very ugly time indeed.