The Use of Blockchain Technology in the Healthcare Industry

Background Information

Despite blockchain technology being initially launched as an asset for the financial industry, it is safe to say that blockchain could be applied to any other professional field. The ultimate nature of blockchain technology makes it possible for healthcare providers to benefit from the implementation of new digital instruments (Farouk et al., 2020). The extended functionality might potentially transform life sciences in line with clinical and medical approaches to patients. In the relevant research, the advent of blockchain solutions for healthcare is compared to the initial effects of the introduction of the TCP/IP protocol (Hussien et al., 2019). Thus, blockchain should be expected to improve interoperability and make it easier for healthcare researchers to conduct longitudinal studies. With stronger supply chain management and numerous automated operations, the healthcare industry would have the opportunity to perform a smooth reboot as well. In other words, blockchain is disruptive but only in the case where its effects are not monitored carefully.

Overall, the future of blockchain in healthcare is tremendously positive since the gradual evolution only brings more competitive advantages to field specialists. The research project is going to cover the need for resources to ensure that blockchain is developed and deployed properly. An investigation on why blockchain is currently synonymous with data integrity and high-quality services will be conducted.

Significance of Research

The significance of researching the opportunities linked to blockchain in hospital settings stems from the fact that the advent of digital systems became a facilitator for data collection and secure cryptography. The technology paradigm of healthcare has to be reviewed and transformed recurrently because blockchain represents a strategic contributor to different areas of human activities (McGhin et al., 2019). Since the advent of blockchain, many organizations and businesses across the globe have become interested in finding ways to minimize human error and protect available data. Therefore, the current project is going to investigate how blockchain could improve trust among healthcare stakeholders and probably alter care delivery models at the end of the day. The incredibly high level of anticipation linked to blockchain makes it crucial to keep reviewing the possible uses of the disruptive technology. Smarter exploitation of blockchain solutions would contribute to radical transformations of healthcare settings due to society and government displaying their genuine interest in the new technology.

Goals and Objectives

The primary goal that the researcher expects to accomplish with the current project is to conduct a comprehensive review of existing evidence on the subject of blockchain in a hospital setting. The dynamic nature of technological innovations paves the way for such investigations, especially considering that blockchain is a universal tool that surpasses the financial sector and generic applications. Hence, a comprehensive review will broaden the horizons for researchers, as the viability and applicability of blockchain solutions are going to be evaluated against a series of fundamental principles.

Respectively, these vital criteria will be treated as objectives during the review, as the researcher is going to evaluate the potential success of implementing blockchain against them. The first criterion is the level of supply chain transparency that a healthcare environment could achieve. Knowing that it is a long-standing major challenge for numerous hospital settings, it might be essential to see how consumers could be enabled with the help of a blockchain-based system. The researcher would be interested in reviewing the connection to artificial intelligence (AI) and the Internet of Things (IoT) when outlining the impact of blockchain on the healthcare sector. An optimized supply chain might be a source of a higher level of consumer confidence as well. Thus, the short- and long-term effects of blockchain on healthcare supply chains cannot be ignored.

Another criterion is the possibility to improve the quality and safety of electronic health records while also making them patient-centric. Medical histories and other types of sensitive patient data have to be stored efficiently in order to affect care coordination and reduce the occurrence of human error. Therefore, the objective will be to see how blockchain-based systems could contribute to the development of comprehensive, easy-to-access medical records that contain various therapeutic information. Also, improved electronic health records have to be perceived as an opportunity because of advanced analytics and predictive insights. The combination of AI and blockchain could transform the process of care provision into a personalized experience.

The final criterion associated with the research objectives is the introduction of blockchain in an attempt to improve IoT security and strengthen remote monitoring solutions. This is a serious trend that has to be reviewed because proactive care has to be instilled in order to aid providers in maintaining a closer connection to patients. The issue of security is too significant to be ignored – especially in healthcare – so it is vital to avoid false information and inconsistent verdicts. Correspondingly, hacker attacks have to be prevented through the interface of blockchain cryptography and limited access to personal data.

Evidence-Based Support for the Project

One of the areas where blockchain is currently utilized successfully is health information exchange. Care providers effectively support interoperability while also following a detailed roadmap that suggests how the blockchain structure could enhance authorization and authentication methods (De Aguiar et al., 2020). The principle of universal availability of information enables patients to collaborate with care providers and share their personal details willingly. It makes it easier for providers to develop a friendlier hospital setting and build a positive relationship with patients within a collaborative nursing ecosystem. In line with McGhin et al. (2019), interoperability is much easier to achieve with blockchain-based solutions because they enhance data protection and contribute to the development of a distributed framework for extended use of technology. A contract-based system is going to alter the process of care provision even further, with blockchain being utilized to encrypt all the sensitive information.

A validated history of patient-centric uses of blockchain also makes it safe to say that many hospital settings could benefit from this technology. The concept of full ownership might become a rather motivating outcome for patients having the right to either revoke or grant provider access to their information (Gordon & Catalini, 2018). The architecture of blockchain perfectly reflects the multi-level approach to data safety required by patients. Therefore, the transition from hospital-centric to patient-centric approaches is inevitable. Data privacy could eventually facilitate interoperability and create a much friendlier environment where providers and patients would work collaboratively to protect sensitive data and improve care quality (Hussien et al., 2019). Structural changes are going to affect the workplace ecosystem while also giving an upper hand to consumers by promoting their individuality and independence. A thorough combination of IoT and blockchain could make the proposed solution even more reliable.

The ultimate area of interest that has to be addressed when covering the use of blockchain for a hospital setting is pharmaceutical delivery. The impact of altering the supply chain cannot be predicted in most cases, but the advent of blockchain can be a positive factor. According to Kuo et al. (2019), delivery delays, data theft, and logistical misconceptions could be predicted and proactively mitigated with the aid of blockchain-based instruments. Logistics system management remains an essential topic of discussion for many organizations, and hospital settings require consistent innovation and incentives to promote consistency and reduce monetary expenditures. The annual losses generated because of drug counterfeiting can be minimized owing to blockchain-based solutions as well (De Aguiar et al., 2020). Additionally, healthcare insurance operations are going to become increasingly transparent with automatic claim processing and blockchain-based pre-authorization.

There are also a few challenges associated with blockchain technology that cannot be mediated easily due to their deep impact on the industry. For instance, the increasing amount of patient data makes it harder for providers to engage in stronger analysis techniques (Farouk et al., 2020). The exponential growth of volumes of patient data overfloods data servers and makes it virtually impossible to standardize data included in the blockchain. Another challenge to be resolved is the presence of crucial constraints that affect blockchain-related regulations and incentives. Despite the benefits of quicker operations and real-time transactions, the cost of blockchain-based solutions drives many executives from vouching for blockchain and constant innovation (Gordon & Catalini, 2018). Hence, encryption drawbacks and the high cost of blockchain-based solutions make it available only to larger care providers, contributing to a growing gap between hospitals.

Financial Proposal Analysis and Budgeting

The financial plan aims at determining all the project’s financial requirements in establishing a blockchain-based healthcare ecosystem. Also, the expenses reflect the proposed budgeting for the project. The operational costs reflect the financial services required to implement the research fully. This budgeting is designed to be concentrated in an uneven distribution of resources. The advent of blockchain technology in healthcare may prove the necessary justification for project funding based on the prospected in the breakeven analysis. It determines the sources of finances and how the money will be used. The finical proposal and budgeting are based on acquiring research support.

Pre-Operation Costs

It entails all the costs incurred before starting the business.

1 Prototyping 8,000
2 Software platform Rent 7,200
3 Training 120, 000
4 Project management 12,000
5 License 10,000
5 Computers 15,000
7 Marketing 20,000
8 Maintenance 12,000
9 Miscellaneous 20,000
10 Wages 232,320
11 Communication 1,200
12 Total 449,720

Working Capital

Current Assets Year 1 Year 2 Year 3 Year 4
Assets 29,000 30,000 35,000 31,000
Debtors 9,000 6,000 4,000 2,000
Cash in hand 100,000 120,000 140,0000 160,000
Cash at bank 500,000 520,000 540,000 560,000
Total 638,000 676,000 719,000 753,000
Current Liabilities
Creditors 15,000 17,000 19,000 21,000
Loan payment 12,000 10,000 8,000 6, 000
Total 27,000 27,000 27,000 27,000
Working capital 611,000 649,000 692,000 726,000

Statement of Comprehensive Income (Profit and Loss Account)

Expected statement of comprehensive schedule for the period ended April 1, 2023.

Total Sales 1,600,000
Less Inwards (255,000)
The projected Net Sales 1,345,000
Cost of Unit Sales 345,000
Gross Profits per Quarter 1,000,000
Proposed Expenses (250,000)
The Sales Net Profits 750,000
Corporate tax commitment (70,000)
Net Profit After Tax 680,000

Balance Sheet as of April 1, 2023.

Buildings 127,200
Fixtures, Furniture, And Fittings 25,000
TotalNon-CurrentAssets 152,200
Initial Assets 29,000
Debtors 9,000
Cash At Bank 500,000
Cash In Hand 100, 000
Total Current Assets 638,000
All Loan Repayments 12,000
Creditors 15,000
Payable tax 150,000
TotalAssets 613,200
Profit And Loss Account 680,000
Total Reserve 116,800
Non-Current Liabilities
Loan 50,000

Break-Even Analysis

No. Item Cost
1 Platform Rent 7,200
2 Security 10,000
3 Coding Wages 80,000
4 Government tax 10,000
5 Computers 45,000
6 Accrued interest 5,000
Total 152,200
1 Prototyping 5,000
2 Operation costs 8,000
3 Licensing costs 10,000
4 Depreciation 9,000
5 Communication platforms
6 Maintenance of electronics 20,000
Total 83,000
Average per-unit revenue (p) 3350
Average per unit variable cost (v) 1650
Estimated Monthly Fixed cost (f) 152,200
Break-Even Point 90


The estimated breakeven point is when 90 Hospitals have adopted the blockhead prototype
Figure 1: The estimated breakeven point is when 90 Hospitals have adopted the blockhead prototype

Alternative Plan of Actions

The alternative course of action would be to seek grant support to have the project implemented as an organization’s Community Social Responsibility (CSR) project. The steps would first require seeking grants support through a grant proposal that would be developed based on the target institutions. The cost-cutting technique would include accessing technical support from temporary hiring platforms offered on freelancer platforms. This approach would also introduce a different project financial modeling based on the reviews.

The Proposed Project Plan of Activities and Timelines

Contact Lenses Development

Evaluation Plan

The project evaluation would involve a thorough examination of completed goals, objectives, and engagements in order to evaluate if the project achieved the targeted outcomes, offered anticipated benefits, and effected desired change. This project would contact hospitals that have adopted Blockchain-based technologies for reviews. Records analysis is also implemented to review the performance of hospital operations after the adoption of such technologies (De Aguiar et al., 2020). The project assessment entails identifying and quantifying the results and implications of a project’s completion. The project’s evaluation would be completed by writing a project evaluation report that would focus on areas with potential areas for improvement.

The data analysis against the set goals of more than 120 hospitals contacted 2000 patients for reviews and 300 care provider professional input on blockchain technologies used and their potential. Such reviews would determine if the project was carried out following the initial plan and whether the activities contributed to completing a project using assessment criteria (McGhin et al., 2019). The data is measured against the breakeven goals and is designed to offer a projection to validate that all project goals and objectives have been met and the expected results (Farouk et al., 2020). The assessment report would be submitted to the management team for review and further decision-making.

Executive Summary

Health care institutions might use blockchain technology to store medical information securely, synchronizing patient data. The technology facilitates interoperability across various facilities and locations in real-time and securely (Farouk et al., 2020). This project requires resources to guarantee that blockchain technology is developed and implemented appropriately (Hussien et al., 2019). This study will examine how blockchain technology might increase trust among healthcare stakeholders and, ultimately, modify care delivery methods. The objective is to assess the viability of blockchain technology use in healthcare institutions. The amount of supply chain transparency that a healthcare setting may accomplish via blockchain technology in patient care is one of the areas of attention.


This study would want to examine the relationship between AI and the Internet of Things while discussing the influence of blockchain on the healthcare industry. The primary criteria are electronic health records’ capability to increase their quality and security while also becoming more patient-centric. Medical histories and other sensitive patient data must be kept effectively to facilitate care coordination and limit the likelihood of a human mistake. As such, the purpose will also be to determine how blockchain-based systems might aid in the construction of complete, easily accessible medical records that incorporate a variety of treatment data. Additionally, the enhanced analytics and predictive insights of better electronic health records are assessed as an opportunity for offering quality patient-centered care.


De Aguiar, E. J., Faiçal, B. S., Krishnamachari, B., & Ueyama, J. (2020). A survey of blockchain-based strategies for healthcare. ACM Computing Surveys (CSUR), 53(2), 1-27. Web.

Farouk, A., Alahmadi, A., Ghose, S., & Mashatan, A. (2020). Blockchain platform for industrial healthcare: Vision and future opportunities. Computer Communications, 154, 223-235. Web.

Gordon, W. J., & Catalini, C. (2018). Blockchain technology for healthcare: Facilitating the transition to patient-driven interoperability. Computational and Structural Biotechnology Journal, 16, 224-230. Web.

Hussien, H. M., Yasin, S. M., Udzir, S. N. I., Zaidan, A. A., & Zaidan, B. B. (2019). A systematic review for enabling of develop a blockchain technology in healthcare application: Taxonomy, substantially analysis, motivations, challenges, recommendations and future direction. Journal of Medical Systems, 43(10), 1-35. Web.

Kuo, T. T., Zavaleta Rojas, H., & Ohno-Machado, L. (2019). Comparison of blockchain platforms: A systematic review and healthcare examples. Journal of the American Medical Informatics Association, 26(5), 462-478. Web.

McGhin, T., Choo, K. K. R., Liu, C. Z., & He, D. (2019). Blockchain in healthcare applications: Research challenges and opportunities. Journal of Network and Computer Applications, 135, 62-75. Web.

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