About the Client
Group of hospitals of various sizes across the country.
Case Study
Predicting hospital drug supply and demand to minimize drug waste and maximize revenue using TeraDrug Solution
Overview & Problem Statement
A major Healthcare system, considering the exorbitant amount of money the business was spending on Drug cost across its hospitals, decided to develop an understanding about what was driving the procurement, prescription, cost-structure, and waste. In addition, they wanted to understand the comparative situation at their geographically distributed hospitals and the role the physicians play in the overall Drug administration scenario. A successful outcome will provide a deep insight into the Drug procurement, prescription and consumption chain as well as provide insight into reducing overall cost of operation including Drug costs.
TeraCrunch Solutions
TeraCrunch team was provided access to the Healthcare system-wide Claims data, comprising of a large number of hospitals for the past 2 years. This data included the information about the diagnosis provided to the patients, the physicians who provided the diagnosis, the procedures connected with the diagnosis, the drugs administered, the cost data, vendor data and the procurement details of the drugs over this two year period. This data originated from multiple IT systems.
TeraCrunch Data Scientists, with an average of 25 years of data analytics experience in Healthcare industry, spent around twelve (12) weeks understanding the data models of the applications from where the data originated, created a data model map and established correlations between the data elements that would be used for further analysis and data preparation work.
The Data Scientists used the insight from the data and used the TeraCrunch library of algorithms for Healthcare and revised an existing predictive model to gain further insight into the diagnosis, prescriptions and physician behavior. In preparation and fine-tuning of this model, available data distributions were analyzed. The data threw up a number of outliers in terms of physicians, hospitals and drugs. This information would be very valuable in future to make accurate forecasts and predictions.
Impact On the Business
We were able to demonstrate that using the TeraCrunch predictive solution, we will be able to reduce the overall Drug spend by over 10%. The analysis also provided insight into the physician preferences and the hospital behavior. We provided training to the Healthcare system personnel and believe they will be able to continuously improve the operational performance using the data analytics tools at their disposal.
