Current existing patient billing management systems are at best complex and prone to manipulation by the
service providers – today, an estimated 50% of healthcare costs are fraudulent, resulting from excessive
billing or billing for non-performed services. For example, in US alone, Medicare fraud caused around $30
million in losses in 2016 (Das, 2017). It’s believed that the advent of blockchain powered healthcare
systems is expected to provide realistic solutions or minimizing the medical billing-related frauds – through
automation of the majority of the claim adjudication and payment processing activities – that is, blockchain
systems would help eliminate the need for intermediaries – and thus, reduce the administrative costs and
time for providers and payers.