The healthcare industry is facing an unprecedented crisis; the COVID-19 pandemic has highlighted many of the underlying issues that have been prevalent in the sector for years. One of the key problems is the healthcare incentives system, which has been proven to be ineffective and counterproductive. A growing number of experts and stakeholders in the industry are advocating for the use of crypto, DAOs, and NFTs to improve the system and incentivize the right behavior.
What’s Wrong with Healthcare Incentives?
Incentives in healthcare are designed to encourage healthcare providers to act in ways that benefit patients. Traditionally, the healthcare incentives system has been based on fee-for-service, which means that providers are paid for every service rendered, regardless of the outcome. However, this system has led to a number of problems, including overutilization of services, unnecessary tests and procedures, and higher costs for patients.
Furthermore, the fee-for-service system creates a misalignment between healthcare providers and patients. Healthcare providers are incentivized to perform as many procedures and tests as possible, which may not necessarily be in the best interest of the patient. For example, a physician who is paid for every MRI or CT scan may order more tests than necessary, leading to additional healthcare costs and potential harm to the patient.
Another issue with the current incentives system is that it does not prioritize preventive care. Providers are paid when patients are sick, not when they are healthy. This means that the incentives are not aligned with the goal of keeping patients healthy and preventing illnesses.
How Can Crypto, DAOs, and NFTs Help?
Crypto, DAOs, and NFTs have the potential to revolutionize the healthcare incentives system by creating a more patient-centered and outcome-based approach. Here are a few ways that these technologies can be used:
1. Decentralized Autonomous Organizations (DAOs) can help prioritize preventive care.
DAOs are digital organizations that operate without central control. They operate on a blockchain and are run by smart contracts that execute automatically when certain conditions are met. Healthcare DAOs could be used to reward patients for engaging in healthy behaviors, such as exercising, eating well, and getting regular check-ups. Patients could earn tokens or rewards that they could use to pay for their healthcare expenses.
2. Non-Fungible Tokens (NFTs) can incentivize patients to stick to treatment plans.
NFTs are unique digital assets that can be bought, sold, and traded like traditional assets. They could be used to incentivize patients to stick to treatment plans by rewarding them with NFTs that have real value. For example, a patient who completes a course of physical therapy could earn an NFT that could be traded like any other asset.
3. Cryptocurrencies can be used to create a more patient-centered incentives system.
Cryptocurrencies have the potential to create a more patient-centered incentives system by allowing patients to pay for healthcare services directly. By using cryptocurrencies, patients could bypass the need for insurance companies, which have been accused of creating many of the problems with the current incentives system.
Conclusion
The healthcare incentives system has been broken for years, leading to higher costs and potential harm to patients. However, with the use of crypto, DAOs, and NFTs, there is the potential to create a more patient-centered and outcome-based system. By prioritizing prevention, incentivizing patients to stick to treatment plans, and creating a more direct payment system, these technologies could revolutionize the healthcare industry.
Molecule, a conglomerate of Decentralized Autonomous Organizations (DAOs), wants to fix the broken healthcare system by addressing the lack of data liquidity. To achieve this, Molecule is creating a marketplace for translational work to fix problems in the doctor’s office. By involving patients as a platform to drive and fund research, Molecule wants to put patients in the driver’s seat in terms of the data that enables them to be treated. To make the research process more transferrable and liquid, Molecule uses IP-NFTs, which are intellectual property non-fungible tokens, to tokenize sponsored research agreements. Instead of centralizing information sharing agreements, these IP-NFTs encourage participation and collaboration in a much larger environment, without having to patent innovations along the way. Paul Kohlhaas and Vincent Weisser, co-founders of Molecule, believe that the best way to fix problems in the healthcare system is to involve patients as a platform to drive and fund research. To achieve this, Molecule is creating a platform approach that aims to bring together patients, researchers, and investors alike to be able to own and govern IP through these tokens. Molecule’s focus is on intellectual property and funding, which is the bedrock for a variety of flourishing communities that are aligned around specific incentives while coming from diverse backgrounds. One such community is VitaDAO, which focuses on longevity research. VitaDAO’s membership includes people who contribute either funding or time in the form of work, and in return, they receive governance tokens that allow for voting on proposed research projects. Membership based on contributed work is one of the ways in which this “Bio DAO” differs from other investment DAOs. To build more efficiently in web3, Molecule has worked with bio.xyz to launch Bio DAOs around synthetic biology, hair loss, psychedelics, women’s health, and more. The larger Decentralized Science (or DeSci) movement heralds future benefits for the healthcare system, and Molecule aims to make science funding as quick, digital, easy, and non-bureaucratic as possible. By moving toward a decentralized model where multiple communities can thrive, Molecule is pointing the way towards a better, more sustainable future for healthcare.
