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New Service Brings RCM Process To Blockchain

Posted on October 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.

Much of the discussion around blockchain (that I’ve seen, at least) focuses on blockchain’s potential as a platform for secure sharing of clinical data. For example, some HIT experts see blockchain as a near-ideal scalable platform for protecting the privacy of EHR-based patient data.

That being said, blockchain offers an even more logical platform for financial transactions, given its origins as the foundation for bitcoin transactions and its track record of supporting those transactions efficiently.

Apparently, that hasn’t been lost on the team at Change Healthcare. The Nashville-based health IT company is planning to launch what it says is the first blockchain solution for enterprise-scale use in healthcare. According to a release announcing the launch, the new technology platform should be online by the end of this year.

Change Healthcare already processes 12 billion transactions a year, worth more than $2 trillion in claims annually.  Not surprisingly, the new platform will extend its new blockchain platform to its existing payer and provider partners. Here’s an infographic explaining how Change expects processes will shift when it deploys blockchain:

Change_Healthcare_Intelligent_Healthcare_Network_Workflow_Infographic

To build out blockchain for use in RCM, Change is working with customers, as well as organizations like The Linux Foundation’s Hyperledger project.

Hyperledger encompasses a range of tools set to offer new, more-standardized approaches to deploying blockchain, including Hyperledger Cello, which will offer access to on-demand “as-a-service” blockchain technology and Hyperledger Composer, a tool for building blockchain business networks and boosting the development and deployment of smart contracts.

It’s hard to tell how much impact Change’s blockchain deployment will have. Certainly, there are countless ways in which RCM can be improved, given the extent to which dollars still leak out of the system. Also, given its existing RCM network, Change has as good a chance as anyone of building out blockchain-based RCM.

Still, I’m wondering whether the new service will prove to be a long-term product deployment or an experiment (though Change would doubtless argue for the former). Not only that, given its relatively immature status and the lack of broadly-accepted standards, is it really safe for providers to rely on blockchain for something as mission-critical as cash flow?

Of course, when it comes to new technologies, somebody has to be first, and I’m certainly not suggesting that Change doesn’t know what it’s doing. I’d just like more evidence that blockchain is ready for prime time.

Healthcare Industry Leads In Blockchain Deployment

Posted on January 19, 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.

A new study by Deloitte concludes that healthcare and life sciences companies stand out as planning the most aggressive blockchain deployments of any industry. That being said, healthcare leaders are far from alone in paying close attention to blockchain, which seems to be coming into its own as corporate technology.

According to Deloitte, 39% of senior executives at large US companies had little or no knowledge of blockchain technology, but the other 61% reported their blockchain knowledge level as broad to expert. The execs who were well-informed about blockchain told Deloitte that it would be crucial for both their company and industry. In fact, 55% of the knowledgeable group said their company would be at a competitive disadvantage if they failed to adopt blockchain, and 42% believed it would disrupt their industry.

Given this level of enthusiasm, it’s not surprising that respondents have begun to invest in blockchain internally. Twenty-eight percent of respondents said their company had invested $5 million of more in blockchain tech to date, and 10% reported investing $10 million or more. Not only that,  25% of respondents expected to invest more than $5 million in blockchain technology this year.

While the level of blockchain interest seems to be pronounced across industries studied by Deloitte, healthcare and life science companies lead the pack when it came to deployment, with 35% of industry respondents saying that their company expects to put blockchain into production during 2017.

All that being said, aggressive deployment may or may not be a good thing just yet. According to research by cloud-based blockchain company Tierion, the majority of blockchain technology isn’t ready for deployment, though worthwhile experiments are underway.

Tierion argues that analysts and professional experts are overselling blockchain, and that most of blockchain technology is experimental and untested. Not only that, its research concludes that at least one healthcare application – giving patients the ability to manage their health data – is rather risky, as blockchain security is shaky.

It seems clear that health IT leaders will continue to explore blockchain options, given its tantalizing potential for sharing data securely and flexibly. And as the flurry of interest around ONC’s blockchain research challenge demonstrates, many industry thought leaders take this technology seriously. If the winning submissions are any indication, blockchain may support new approaches to health data interoperability, claims processing, medical records, physician-patient data sharing, data security, HIEs and even the growth of accountable care.

If nothing else, 2017 should see the development of some new and interesting healthcare blockchain applications, and probably the investment of record new amounts of capital to build them. In other words, whether blockchain is mature enough for real time deployment or not, it’s likely to offer an intriguing show.