Blockchain deal will reduce healthcare costs by millions, tech firm says
A Bermuda-based healthcare technology firm has struck a deal with a US company to cut the cost of payment processing.
MAPay, a US firm with its headquarters in Hamilton, has signed up with fintech company Algorand to create a stablecoin and use its partner’s blockchain technology to process about $800 million in healthcare charges in Bermuda as well as improve efficiency around the world.
Michael Dershem, the CEO of MAPay, said: “Our relationship with Algorand is a global game changer in healthcare commerce and data exchange.
“Not only is our tech in alignment, but just as important, if not more so, our collective management vision and passion is spot-on.”
Mr Dershem added that MAPay had “delivered on its promise” to headquarter in Bermuda and attract international partners to do business on the island.
Kevin Richards, the former manager at the Bermuda Business Development Agency, now head of the private sector Bermuda Asset Management, said when he met MAPay executives they had “clearly communicated the positive impact that blockchain-enabled solutions could have in addressing the inefficiencies in healthcare payments, both locally and cross-border.”
The technology is claimed to be able to cut out a major part of claim processing and transactions costs linked to overseas healthcare.
Mr Richards said: “Bermuda’s innovative regulatory framework for digital assets continues to attract transformational projects and places us at the centre of what could power a global change in the way healthcare payments are transacted in Bermuda and around the world.”
He added: To see it come full circle with a launch partner like Algorand is extremely exciting and delivers of BAM’s goal of enabling economic diversification through transformational technology.
“Bermuda’s innovative regulatory framework for digital assets continues to attract transformational projects and places us at the centre of what could power a global change in the way healthcare payments are transacted in Bermuda and around the world.”
The system was designed for insurance companies, government healthcare providers and banks.
It is understood that MAPay is already in talks with insurance companies, the health ministry, the Bermuda Hospitals Board and GP practices across the island on the adoption of the technology.
Mr Dershem said at a health conference earlier this year that, if the technology could reduce healthcare costs by ten per cent, it would save almost $1 trillion that could be used for other health needs.
He added: “That would go a long way to providing vaccines in developing geographic regions, access to care in urban health deserts and orphan drug research.”
Algorand, based in Boston, was founded by Silvio Micali, a professor at the Massachusetts Institute of Technology and a former winner of the prestigious Turing Award for computer science.
Its blockchain technology is said to be used by more than 500 global organisations.