Can HealthTech deliver TIME savings, lower COST, true PRIVACY and better OUTCOME for its customers and higher quality care?
Our health is one of our most valuable assets. As is time, family, capital, the list goes on.
However, without our health, we can NOT truly enjoy the list that follows.
Our healthcare services are falling behind our global competitors, so the question becomes – what can be done?
One solution is to leverage today’s technology and data awareness and invest significant capital in a distributed ledger platform for the healthcare system. Some of you will be thinking “Blockchain”!
Yes, a platform that serves as a vessel for new workflows and processes designed to maximize the use of artificial intelligence (AI), neuro-linguistic programming (NLP), consensus mechanisms and smart contracts among others.
Imagine automatically triggered protocols that digitally facilitate, verify, or enforce transactions without third party involvement, that is the power of smart contracts.
Several large issues present within the healthcare system today: TIME (or more clearly the inefficient use of time), COST (or again, more directly, excessive costs), PRIVACY (do customers understand what information about them is being released to 3rd parties) and OUTCOME (or more accurately the high rate of avoidable undesired outcomes!)
Administrative complexities and redundant tasks are a root cause of the inefficiencies in today’s healthcare system. Non-standardized workflows and excessive tasks produce inconsistent and inaccurate data and hinder communication between providers using different systems. This diverts focus from providing proper care to patients, leading to frustration for all involved, and ultimately lower quality care.
Here are some interesting highlights on the Healthcare Industry’s statistics:
- $250 BILLION! It costs nearly $250 billion to process 30 billion healthcare transactions each year (50% are faxes)
- 86%, $19.5 BILLION, 2,500! Eighty-six percent of mistakes made in the healthcare industry are administrative. This results in medical, mortality and short-term disability costs of $19.5 billion and in excess of 2,500 deaths (Source The Economic Measurement of Medical Errors)
- 3 out of 10! 3 out of 10 tests are re-ordered because the results cannot be found
- 25%! Approximately, 25% of all US hospital spending consists of administrative costs
There are many more daunting statistics, however, what they have in common is that they all lead speedily to increasing costs. More importantly, they also may lead to missed diagnoses, resulting in a lengthy recovery process or even in death.
The repercussions of the above statistics may make most of us feel particularly uncomfortable on the future of healthcare services.
Additionally, some of us might have already experienced issues due to the negative consequences of the healthcare system’s current state.
The table below shows a comparison of the current healthcare system and what patients, providers and payers should experience.
Some of the significant impacts of a conceivable healthcare system are: reduced wait times, lower mortality rates and additionally, cost reductions. Additionally, we can highlight these improvements:
- Healthcare Consumers: Receive better treatment delivered through a positive experience. Real-time access to an up-to-date, reliable health records for any future treatments.
- Healthcare Providers: Diagnoses can gain in both accuracy and speed. Doctors can focus more time to more productive activities rather than administrative tasks. Anonymous, quality data can be made available on illnesses and related treatments for anyone in the system, giving those in need of vast amounts of data to provide and get the best treatment possible.
- Institutions of the Healthcare System (i.e., hospitals, insurance companies, more): Massive reductions in unnecessary tests and administrative costs, and potentially fewer lawsuits due to improper care lead to additional savings. Simultaneously, the top performers will be able to contribute more towards the top line.
To realize these substantial efficiencies, we need to define a framework that optimizes the value of health data. This improves healthcare services for higher social well-being and reduces the unproductive administrative tasks. A first step would be to have quality health data as the foundation of the system.
We need the data to be the following:
Leadership, from all stakeholders, unites and promotes the allocation of resources to establish new governance, better communications protocols and streamlined workflows. The current workflows should be reviewed, better revised and defined in the simplest formats to best utilize today’s technologies including AI, NLP, and consensus mechanisms.
For today’s current healthcare system to remain relevant and sustainable, it needs significant amounts of future financial and human capital investment to increase operational efficiency, enhance value, and to save more lives.
There is an opportunity to invest capital in DLT platforms that generate sustainability in the form of positive societal impact throughout the entire healthcare ecosystem.
When this Impact is materialized, it generates i) Top and Bottom line revenue gains for the institutions; ii) Superior levels of healthcare services; and hopefully, iii) a better life for all.
People, communities, society and our nation need a relevant, sustainable healthcare system to live a safer, longer, higher quality of life.
Suresh Hathiramani was formerly a managing director in the financial services industry, building businesses and driving transformation in the fixed income space. His IT consulting background has enabled him to bridge relevant experiences from the FinTech sector with technology architecture and models for future operations.
“Health is the greatest wealth I possess, the asset I plan to invest on most so I can enjoy a better life with my family.”
Gregory Mark Hill was formerly in leveraged finance and M&A in New York, tech investment banking in Silicon Valley, venture capital in China, and now serves as adviser to massive growth companies competing in various sectors including ConsumerTech, FinTech, HealthTech, EdTech and traditional industries leveraging tech and innovative solutions to scale globally.