Blockchain
Hot tech topic:
What is blockchain?
It has the potential to transform:
Financial Services
Healthcare
Food, Commerce and Supply Chains
across these industries
Cybersecurity
Blockchain is generating a lot of buzz.
Who's using blockchain?
But how does it work?
Blockchain basics
— Best known as the database/ledger technology underlying bitcoin
— Stores “blocks” of information in a way that is permanent and unalterable
— Decentralizes data storage by connecting and duplicating digital information across a network
— Because the data is not stored in any one single location, it cannot be manipulated or corrupted
— Information is continually reconciled across the network
Blockchain for the pharma supply chain
The Drug Supply Chain Security Act (DSCSA) requires an interoperable electronic system to pass serial number information between trading partners (distributors, manufacturers, pharmacies, etc.) by 2023.
— The pharmaceutical industry in the U.S. uses a “patchwork” approach that makes large scale interoperability nearly impossible — Integrations are costly, cumbersome and don’t address the risk of diversion and counterfeits
The problem:
Blockchain can solve this.
The MediLedger project
Group established in 2017 to test blockchain for use in healthcare
— Zero-knowledge proofs validate sensitive data
— Transactions governed by smart contracts, following best practices for secure software—validating identities and products and parameters for accepted transactions
— Saleable Returns solution live in October 2018
— Piloting 2023 scenarios with sites of care and manufacturer partners
Pioneering solutions for meeting track and trace regulations by creating a permissioned blockchain network for the pharmaceutical industry based on open standards and specifications
The MediLedger network is deployed by Chronicled, Inc.
— Achieving interoperability with GS1 Standards
Saleable returns process
01
Manufacturer joins the MediLedger network
02
Manufacturer products (GTINs) are added to the lookup directory
03
Lookup directory updated and pushed to consensus nodes
04
Distributor scans product for resale
05
Product identifiers are verified in less than one second
06
Verified product is resold
07
Manufacturer bought or sold
08
Product from transferred GTIN verified
— AmerisourceBergen reconciles GPO and manufacturer data, clears disputes (product ID, class of trade, pricing, etc.), manages pre-dated contracts
Current State
— Average 3-day collection
Contracts and Chargebacks
— Thousands of electronic files and faxes shared weekly
Manufacturer (MFG)
Pricing
Membership
Payment
GPO
Class of Trade
— One source of truth for customer, product, pricing and effective dates — No Electronic Data Interchange — No file sharing — Less than 3-day collection
Future State
Is blockchain healthcare’s new hero?
Right out of the box, no. But it does hold promise beyond the supply chain:
— Electronic Health Records (EHRs) — Clinical trials and medical research — Electronic benefit verification and claims processing — Prior authorizations
AmerisourceBergen in the news
