Overcoming Barriers to Advance Blockchain Implementation in German Healthcare Sector
Summary:
Blockchain technology's extensive capabilities extend to safeguarding data, enhancing its integrity, and boosting patient control over healthcare data. However, despite the recognized potential of blockchain, its implementation in the German healthcare sector remains limited due to factors such as heavy regulation, stringent data protection laws, negative public perception associated with cryptocurrencies, and the need for significant investment in technology adaptation and expertise. Bridging these gaps by fostering cooperation between technology developers, data protection officers, and regulatory authorities could potentially position Germany as a leader in the development and deployment of blockchain applications in healthcare.
Blockchain technology has evolved beyond digital currencies and now finds use in a diverse range of applications, including decentralized databases that offer transparency and security, thereby preventing possible fraud. It offers significant value to the health sector where it can safeguard data, enhance the integrity of information, and provide patients with a more effective control over their data. With blockchain, drug authenticity can be verified thanks to improved transparency in the supply chains, and healthcare identification can be aided, potentially simplifying data exchange and storage for biomedical research.
Despite the plethora of benefits blockchain has to offer, its practical use remains fairly limited in the German healthcare arena. In 2019, the German Federal Ministry of Health recognized the potential of blockchain technology and consequently conducted a workshop on it. Among 142 project proposals, 20 were shortlisted and various projects including secure electronic prescriptions, distributed Patient Consent Service forms and a blockchain-operated certificate for disability were rewarded, but as yet none have been fully executed.
Even after that, several new initiatives were initiated, however, they largely exist in isolation and implementation is scarce. The primary question is - why is the promising technology of blockchain not being embraced by Germany?
When talking about the relatively small number of blockchain projects in the German healthcare system, Volker Nürnberg, a healthcare management professor at the Technical University of Munich, expressed to Cointelegraph that the highly regulated nature of the German healthcare sector combined with its less forthcoming attitude towards innovation poses unique challenges for startups. He also noted that the technical, ethical, and privacy-based hurdles make it difficult to implement blockchain technology. Providing protection to sensitive data and maintaining interoperability are the main concerns: “Without politics and legislators due to the strong regulation in the healthcare sector, the introduction of blockchain technology is not possible.”
Dr. Lukas Weidener, a medical practitioner who has invested in various medical decentralized autonomous organizations, comments on this note, saying that strict data security laws have placed a heavy responsibility on the security and privacy of blockchain systems in order to protect sensitive patient data.
The General Data Protection Regulation (GDPR) helps ensure that sensitive patient data is handled strictly and confidentially, thus this is crucial for the healthcare sector where unauthorized disclosure or misuse of data could have serious implications. Adherence to GDPR becomes a sign of trust and quality for the patients and users, indicating that their data is safe and being handled responsibly.
Yet according to Weidener, these data security and privacy requirements could pose a hindrance to blockchain applications as this technology depends on data transparency and immutability, potentially leading to a conflict with the right to be forgotten or the principle of data minimization.
These legalities might encourage businesses in other countries to outrun German companies, thus restricting the control and influence of the German industry over the global growth of these technologies.
However, with GDPR one can also witness an opportunity to further develop blockchain applications that are set out to meet high standards. Weidener suggests that in order to make the most out of this technology and meet the GDPR requirements, a healthy collaboration between tech developers, data protection officers, and regulatory authorities is needed.
Another concern is the negative public imagery associated with blockchain due to its relationship with cryptocurrencies. Weidener adds to this, stating that "strict authorization and the certification procedure for medical devices means that any tech innovation should undergo wide-ranging testing and an approval routine which slows down the innovation cycle."
Implementation of blockchain technology in the healthcare sector also demands considerable investment in advanced technology and expertise, which is particularly challenging for smaller institutions and practices.
Weidener underscores the importance of strategic investment in research and funding, particularly for those technologies that comply with data protection regulations. He notes that interoperability with already existing IT infrastructures and building user-friendly apps enabling convenient interaction with blockchain-based healthcare services are also key.
“This is the only way Germany can play a leading role in the development and implementation of blockchain applications in the healthcare sector.”
Published At
5/13/2024 12:01:00 AM
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