Which industry is the most progressive? Healthcare won\u2019t appear on most lists. A recent study by the IBM Institute for Business Value revealed that, surprisingly, healthcare executives are setting the pace of\u00a0blockchain adoption.\nThe survey, conducted for IBM by The Economist Intelligence Unit, found that 16 percent of healthcare executives expect commercial blockchain solutions at scale by 2017.\nIntegrating artificial intelligence with machine learning, experimenting with virtual reality, and robotic process automation are several of the ways that healthcare executives are capturing the benefits for patients while skillfully dodging regulatory compliance obstacles. The business of disruption is not where you\u2019d expect it: at the patient experience. Patient interactions, while marginally improving, are not dramatically transforming. There are pools of revolution here or there, but largely a firm grip on the status quo. The major shift of transformative innovation is happening with the introduction of new business models, and blockchain is positioned to lead this charge.\nInnovative insights\nIBM brought together an impressive group of leaders to design and execute the study of 200 healthcare executives across 16 countries from payers to providers. IBM employees incude Sean Hogan, global industry general manager for healthcare and life sciences; Heather Fraser, global healthcare and life sciences leader; Peter Korsten, vice president global thought leadership and eminence; Venna Pureswaran, blockchain research leader, and Ramesh Gopinath, vice president for blockchain solutions and research. The core IBM team was reinforced by amazing industry contributors, including Nicky S. Hekster, Srinivas Attili, Sushell K. Ladwa, Anthony F. Trenkle, Richard Hennesy, Don Ness, April Harris, Christine Kinser, Joni McDonald, Smitha Soman, Anne-Marie Weber, Kristin Biron and Lauren White. Together the team produced an insightful analysis of the complex world of blockchain technologies and defined the new vectors for growth and disruption.\nIBM presented the contrary view, from survey results, that executives are expecting healthcare to set the pace of innovation slightly ahead of the financial services industry \u2014 with little disruption. The IBM Institute for Business Value survey expanded upon four questions:\n\nWhat was the cadence and pace of healthcare trailblazers?\nHow would new benefits and business models significantly reduce the time, cost and risks associated with how they operate?\nWhere would the new vectors for growth and disruption occur, shifting\u00a0profit pools?\nHow fast should executives adopt blockchain for their organizations?\n\nTrailblazers of adoption\nAre healthcare executives complacent and comfortable with the how patient care is delivered? It\u2019s possible. However, there may be another answer. Healthcare executives predicted transformational innovation to occur for blockchain in 2017. The IBM Institute for Business Value blockchain survey identified nine areas where transformation and disruption are likely to emerge:\n\nMedical device data integration (cited as an area of "some disruption" by 65 percent of the respondents).\nAsset management (60 percent).\nMedical and health records (42 percent).\nClinical trial records (40 percent).\nAdverse event safety monitoring (39 percent).\nMedication and treatment adherence (36 percent).\nRegulatory compliance (34 percent).\nBilling and claims management (33 percent).\nContract management (32 percent).\n\nThe survey results indicated that disruption rarely emerged from a single process. Transformational innovation forms when organizations voluntarily or involuntarily reconsider organizational boundaries. North American respondents lagged other regions, with only 8 percent identifying their organizations as trailblazers. Initial first-mover advantages appear weak. The value of early collaborations and new partnerships has yet to be defined.\nReducing frictions\nThe IBM Institute for Business Value blockchain survey called out nine frictions that blockchain is expected to significantly impact.\u00a0\n\nImperfect information.\nInaccessible information.\nInformational risks.\nTransaction costs.\nDegrees of separation.\nInaccessible marketplaces.\nRestrictive regulations.\nInstitutional inertia.\nInvisible threats.\n\nA reduction of misinformation improved\u00a0interactions\u00a0and accelerated healthcare delivery by\u00a0reducing intermediaries\u00a0prove the most impactful.\nAs boundaries between payers and providers become less visible, it\u2019s apparent that data verification and cost delay frictions impact trust. How will organizations respond to blockchain opportunities? Executives are answering with additional investments in blockchain technologies.\nEstablishing 'truth not trust' with new business models\nThe private sector of healthcare requires patients to trust. Trust that patient medical information is protected. Trust that treatment is appropriate to the symptoms. Trust that the care patients receive is the best care tailored to their needs.\nThe value of blockchain is not about the technology. Blockchain's value\u00a0is harnessed in the transformative effect of new business models \u2014 business models based on "truth not trust."\nBlockchain provides proof. Proof that patient medical information is protected. Proof that patient treatment is appropriate. Proof that patient care is personalized.\nAcross the board, the survey results indicate executives will make the following investments by 2018:\n\nMedical and health records (94 percent)\nBilling and claims management\u00a0(94 percent)\nMedical devices and data integration\u00a0(92 percent)\nAsset management\u00a0(91 percent)\nContract management\u00a0(90 percent)\nMedication and treatment adherence\u00a0(89 percent)\nClinical trial records\u00a0(88 percent)\nRegulatory compliance\u00a0(87 percent)\nAdverse event safety monitoring\u00a0(86 percent)\n\nA block-by-block approach to better care\nThe IBM Institute for Business Value report gives executives a foundation to be curious. Executives are encouraged to ask questions and inquire on how these components work together to produce value. The healthcare trailblazers are empowering patients to claw back their data as trusted peer-to-peer care networks compete for on-demand services.\nMedical health records silos, medical device data vaporware and limited outcomes for adverse events are moving towards a new business model. The report is loaded with additional information for executives. Here are three findings to keep you asking questions:\n\n9 in 10 healthcare organizations by 2018 plan to finance blockchain applications initiatives.\n16 percent of healthcare trailblazers expect to have a commercial solution at scale by 2017.\n6 in 10 healthcare trailblazers anticipate blockchains will help them access new markets and keep trusted information secure.\n\nFor more detailed information and use cases download the full report. The report prepares executives to ask the right questions \u2014 keeping patients at the center.\nRecommended reading\nFor additional information on blockchain, please refer to the below links highlighting the transformational effect of this technology to transform existing business models.\n\nIBM Healthcare rallies for blockchains: keeping patients at the center\nTop 3 blockchain-based healthcare companies to watch in 2017\nIf I only had 5-minutes to explain blockchain\nIBM fast forward: rethinking enterprises, ecosystems and economies with blockchains\nGetting started with IBM Blockchain and exploring the wonder of Legos\n\nBe part of the healthcare rally for blockchain.