Introduction: In real-world transactional systems, block chain technology allows privacy, security, auditability, tracking, and monitoring. Block chain has been used because to its characteristics in many different sectors. SCM, or supply chain management, is one of these crucial applications. In this essay, the use of block chain technology in the healthcare sector has been examined. Aim: The goal of using block chain technology is to identify a hospital patient specifically, automatically, securely, and effectively pay the insurance claim. In this regard, a first algorithm has been proposed that generates a unique ID using the user's smart phone and a governmentissued ID. Method: The user's smart mobile stores and makes use of the unique ID. The same ID is used to authenticate transactions after identity formation. The mobile device is used to produce a signature that is transmitted to the insurance company in order to validate the transactions. Findings: The patient's claim for insurance was verified by the hospital using the patient's signature. The suggested block chain-based system has been simulated using the JAVA programming language. After installation, simulation tests were conducted, and performance was assessed. Originality and value: Based on time and memory use, the effectiveness of both the certificate generation and authentication processes has been assessed. The results demonstrate the effectiveness, security, secrecy of the system's transaction management.