Braden Perry, a Digital Currency Council certified professional and blockchain attorney at Kansas City, Mo.-based law firm Kennyhertz Perry, discusses the biggest challenges to blockchain adoption as well as the ways it can help improve medical record sharing.
Responses have been lightly edited for clarity and length.
Question: Where is blockchain in healthcare now and how will it develop in 2019?
Braden Perry: Blockchain in the healthcare industry, like blockchain technology itself, is in its infancy but on the peak of rapid expansion. Companies that see the potential and are proactive in its adoption will likely be the frontrunners in innovation and ahead of the curve when the benefits are fully realized. There is an opportunity for efficiencies in transparency and cost-cutting, and a few high-profile applications are taking hold. When the regulatory landscape evolves with the technology, more businesses will likely follow.
In the near future, secure, transferable and accurate medical records will likely be one of the biggest trends due to the complexities inherent in the system and the potential for errors in digitalization. Peer-to-peer medical records sharing will have significant potential.
Q: What would you say is the biggest challenge to blockchain adoption?
BP: The biggest challenge to blockchain adoption is that the regulatory treatment is unclear for many uses with blockchain and virtual currency technology. It seems as if every federal regulatory agency has chimed in on blockchain issues, but none have taken the lead. For example, the IRS has classified virtual currency as property, and the Commodity Futures Trading Commission has said they are commodities. The SEC has implemented a securities structure surrounding initial coin offerings, and no agency has labeled virtual currency as an actual currency. This is true with blockchain. Until the regulatory structure is clear, many companies will be hesitant to use the technology to innovate their business processes.
Q: What do health IT leaders at hospitals and health systems need to know about blockchain today?
BP: Blockchain has vast potential. Companies looking to innovate and are proactive in its uses will likely reap benefits in ways we can imagine and in likely unimagined areas. As the regulatory framework progresses with innovation, companies will benefit. But that regulatory framework will likely lag the innovation and frustrate those willing to adopt new technology.
To participate in future Becker's Q&As, contact Jackie Drees at jdrees@beckershealthcare.com.