Business Case: Healthcare Cost Optimization Tool
Organization and department
This research focuses on creating a price optimization tool from a patient-centric perspective. By
analyzing the historical treatment costs, patient demographics, payment behaviors, insurance and
length of stay, we aim to create a pricing tool that would suggest the best suited hospital for patients
based on the type of treatment, pricing and location.
Data for this project has been collected from multiple hospitals in Unites States and the research
focuses on four specific types of diseases.
Requirements and Justification
Functional Requirements
1. Price Optimization Model: Developing an algorithm that recommends healthcare services by
analyzing and comparing the historical costs, patient’s demographics and insurance.
Justification:
This algorithm will allow the tool to provide data-driven pricing suggestions making healthcare
costs more accessible and transparent for patients.
2. Cost Prediction Model: Creating a model that estimates treatment costs based on treatment
type, patient's location and financial status.
Justification:
This feature will empower patients to select healthcare providers that are aligned with their
financial needs and the treatment they are seeking for.
Non-Functional Requirements
1. Data Security: The data must be encrypted and securely stored.
2. Accessibility: The website should provide fast and seamless user experience. It should be
an easy-to-navigate interface to ensure users can quickly access and understand the
information provided.
Solution and cost estimate
RESOURCES COST
Mobile Application 15,000
E-commerce Website 20,000
Hardware 10,000
Server Installation 9000
Database 5000
Training 7000
Implementation 12000
Testing 7000
Total 85000
Benefits of investing in this solution:
Listing out the benefits for healthcare providers, insurance companies and investor perspective
1. Healthcare Providers (Hospitals and Clinics)
This tool enables healthcare providers to balance profitability with affordable pricing
strategies, maintaining competitiveness in the market, increasing patient satisfaction,
loyalty, and positive outcomes.
2. Insurance Companies
Predictive analytics will allow insurers to better tailor coverage plans, aligning with actual
cost structures to meet patient needs effectively. This will increase customer retention and
increase in new customers.
3. Investors
As healthcare cost transparency becomes a higher priority, the tool presents a valuable
investment opportunity in a growing market. The tool’s scalability and focus on cost
optimization can drive adoption across hospitals, insurers, and healthcare systems,
increasing the potential for sustainable returns.
