Since its emergence on the scene, we have seen Regtech transform the fintech industry and even begin to feature in the booming mortgage industry. However, there is a key industry that has been overlooked in its influence until now – healthcare. In a post-pandemic landscape, the healthcare industry will experience new trends and challenges including the economic/social disparities attached to telemedicine, an emerging preference for digital care, and dwindling customer loyalty. Amid a sea of change, the application of Regtech is hoped to bring stability, remove inefficient management systems and provide a fresh approach to the healthcare industry while it undergoes a major evolution.
Rising Healthcare Cyber Attacks Signal The Need For Standardized Compliance Security Protocols
Healthcare institutes are amongst one of the most lucrative targets for cybercriminals. Healthcare cyberattacks have risen 55 percent, with over 26 million Americans impacted so far. For 2020, the number of US healthcare breaches stood at 599, with Michigan being the state with the highest number of patients affected. This is because healthcare records are a valuable resource for cybercriminals since it contains a wealth of confidential data, including personal and financial information.
At the same time, the ongoing pandemic has given rise to additional vulnerability issues in the industry as more healthcare professionals work and access sensitive information remotely. Interestingly, while the healthcare industry is one of the industries that is undergoing a heavy digital-first transformation, its workers are not educated about currency cybersecurity risks. Regtech can provide ongoing solutions to these issues by standardizing the use of security protocols like Single Sign-On software, the implementation of risk-based authentication policies, and annual cybersecurity training for healthcare professionals.
Regtech Presents A Key Solution To The Continuing Healthcare Fraud Issue
Even before the pandemic, fraud in the healthcare industry was an issue. The National Money Laundering Risk Assessment (NMLRA) regards healthcare fraud as a top priority. Recently, the SEC charged Premier Healthcare Solutions with fraudulently raising $4million from over 130 investors. Elsewhere, the Department of Justice has charged 345 people with over $6 million in healthcare fraud. Regtech startups that offer AML, KYC, and anti-fraud detection like Identity Mind can go a long way in preventing Medicare fraud. Healthcare providers can also turn to the use of predictive analytics to better serve their patients by providing appropriate Medigap Insurance plans that suit a patient’s health status, copay ability, and state.
The Shift To Digital Care And The Privacy Dilemma
For the last few years, the digital era has been evident in the healthcare industry. In Accenture’s Digital Health Technology Vision 2021 report, 81 percent of healthcare executives said the pace of digital transformation has been accelerating. Approximately 87 percent of those healthcare executives have also said that digital technology and their business strategies have become inseparable. As competition heats up in the industry, more healthcare providers will be investing in technologies like the cloud, SAAS, and blockchain analysis.
The issue is that as more healthcare providers invest in these technologies, issues like data privacy will become more dominant. For instance, more than 46 percent now use telehealth. Regtech companies like Abside Regtech and 6Clicks have been created with boosting compliance in mind since they can track current and upcoming regulations for the industry. Standardizing health data protection with the help of Data Privacy Impact Assessment can also alert healthcare providers of high risks. Theta Lake, which uses AI to help compliance professionals identify potential risks like video and voice content, is a good example of this.
The use of Regtech in the healthcare revolution does not end there. With millions of patients and incredible amounts of continuously processed data, the cost of managing it will only continue to climb. Not only does Regtech present an opportunity for healthcare providers to keep up to date with their increasing data needs but also presents a much-needed solution for cost-effectiveness in the industry. As these and many more benefits become apparent, there is no doubt that more companies in healthcare will continue to turn to Regtech in the future.