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Hospital pharmacy:
18% less wasted stock

We built an ML forecasting tool for a hospital pharmacy network that uses patient volumes and procedure schedules to stock costly drugs with a short shelf life. Waste fell 18%, and the fill rate rose 22%.

Client: Frontier RadiologyIndustry: HealthcareService: AI & Automation

Less drug waste
18%
Higher fill rate
22%
Patient data de-identified
100%

Overview

Project
at a glance

Industry
HealthcareA multi-specialty hospital pharmacy network stocking high-cost biologics and cancer drugs with short shelf lives.
How we worked
Dedicated product teamAn ML architect, data engineers and a HIPAA compliance lead worked inside the client's pharmacy operations team.
Goal
Less waste, no shortagesMove from fixed min/max reorder levels to AI forecasts that follow patient volumes.
What we built
Pharmacy demand forecasting platformA forecasting engine and ordering agents fed by de-identified data from the hospitals' EHRs and procedure schedules.

Client

Who we
built it for

Frontier Radiology

Multi-specialty hospital pharmacy network

About the client
A multi-specialty hospital pharmacy network stocking high-cost biologics and cancer drugs with short shelf lives.
What they needed
Move from fixed min/max reorder levels to AI forecasts that follow patient volumes.
Where they were
Stock levels were set by older averaging models that ignored seasonal changes in patient numbers and local disease outbreaks. Fixed min/max reorder points meant high-cost biologics were overstocked again and again, and $12M of drugs expired and were thrown away each year.

Engagement snapshot

Industry
Healthcare
Service
AI & Automation
Engagement
Dedicated product team
Delivered
Pharmacy demand forecasting platform
Headline result
18% · Less drug waste

The challenge

What was getting
in the way

Stock levels were set by older averaging models that ignored seasonal changes in patient numbers and local disease outbreaks. Fixed min/max reorder points meant high-cost biologics were overstocked again and again, and $12M of drugs expired and were thrown away each year.

Excess stock was only spotted once drugs were within 30 days of expiry, and demand data reached analysts as CSV exports that sometimes still carried patient identifiers.

  • Expired stock

    Fixed ordering left large volumes of specialty drugs to expire, eating directly into the health system's margin.

  • Slow reordering

    Manual ordering added a 72-hour delay between a spike in patient numbers and the replenishment order.

  • Privacy risk

    The older demand analysis risked HIPAA violations by exposing patient-level treatment patterns to third-party vendors.

The solution

What
we built

  1. 01

    De-identified data from the EHR

    We built a secure data flow that pulls patient encounter trends and procedure schedules straight from the EHRs, using HL7 health-record standards.

    Type
    HL7 standards
    Privacy
    Patient identifiers removed
    Freshness
    Near real time
  2. 02

    Forecasts that account for shelf life

    A probabilistic (Bayesian) ML engine ranks each drug's stock risk by shelf life, how fast it is used locally and how unstable regional supply is.

    Model
    Bayesian RNN
    Focus
    Shelf-life aware
    Accuracy
    94% Target
  3. 03

    Ordering within set limits

    Automated agents raise purchase orders within pre-set financial limits and send any exception to a pharmacy director.

    Mode
    AI assisted
    Audit
    Traceable log
    Controls
    Built to HIPAA requirements

Key features

What made it
useful

  • DEMAND FORECASTING

    Forecasts demand for costly drugs

    A Bayesian model forecasts demand for costly, short-life drugs from patient volumes and procedure schedules.

    Business impact

    18% less drug waste

  • ORDERING AGENTS

    Orders and moves stock before it expires

    Ordering agents raise purchase orders within set limits, and surplus stock moves between sites before expiry.

    Business impact

    22% higher fill rate

  • AI assisted

    Shelf-life-first scoring

    Custom scoring weighs how quickly a drug expires against how critical it is clinically, so life-saving drugs do not run out.

    Business impact

    99.2% fill rate

  • HIPAA

    Privacy-safe EHR connection

    A de-identification layer means the forecasting models see only anonymised clinical trends, never patient identities.

    Business impact

    100% audit readiness

  • Live updates

    Moving stock between sites

    The platform spots surplus at oncology centres and redirects it to community clinics before it expires.

    Business impact

    18% less waste

Before and after

How the work
changed

How orders are triggered

Before

Min/max levels

Fixed triggers ignored upcoming procedures and expiry dates.

After

Based on real demand

AI triggers orders from local usage speed and clinical schedules.

Patient privacy

Before

Manual exports

CSV exports for analysis often still contained patient identifiers.

After

De-identified stream

Data is de-identified as it is collected, which keeps analysis within HIPAA rules.

Preventing waste

Before

Spotted too late

Excess stock was found only once drugs were within 30 days of expiry.

After

Moved before it expires

ML flags drugs at risk of expiring early and moves stock between facilities.

Results

The business
difference

  1. Waste

    18% Waste Reduction

    Expired drugs

    Matching stock to procedure volumes broke the old cycle of over-ordering and then throwing out expired drugs.

    Before: High DecayAfter: 18% Lower

  2. Clinical

    22% Fill Rate Lift

    Fill rate for critical drugs

    Putting critical procedures first in the reorder queue improved fill rates for life-saving medicines.

    Before: FragileAfter: Resilient

  3. Compliance

    100% HIPAA Audit Trace

    Audit trail coverage

    Every procurement decision is logged and linked back to the procedure-demand forecast behind it.

    Before: VagueAfter: Verified

Testimonial

What the client
says

“With Coretus we now forecast demand for costly, short-life drugs from patient volumes and procedure schedules. Waste is down 18%, fill rate is up 22%, and surplus moves between sites before it expires. All patient data stays de-identified.”
Dr. Antonio RossiDirector of Pharmacy, Frontier Radiology

Key results

  • 18% less drug waste
  • 22% higher fill rate
  • 100% of patient data de-identified

Trust and control

How we kept it
safe and reliable

  • 01

    Patient privacy

    Every workflow is built to HIPAA requirements, runs on cloud infrastructure covered by a BAA and strips out personal data it does not need.

    HIPAA
  • 02

    Reasons for every order

    The forecasting agents give a reason code for each replenishment order, based on shelf life and volume.

    Traceable
  • 03

    Reliable at busy times

    The cloud-based workflow keeps ordering reliable when demand spikes.

    Scales with demand
  • 04

    You own the models

    The client owns 100% of the IP in the inventory models and replenishment agent code.

    100% owned

Faster delivery

Built on tested foundations

These tested components saved about 10 weeks, which went into the forecasting models and moving stock between sites.

  • HIPAA data platform module

    Gave the project a tested, HIPAA-aligned pipeline for pulling de-identified data from the hospitals' EHRs.

  • Pharmacy inventory module

    Tracked stock levels and expiry dates for every drug at every facility.

  • Supply chain monitoring

    Followed regional supply changes, which fed the forecasting engine's view of supply risk.

  • Procurement controls

    Enforced the financial limits on automatic orders and routed exceptions to pharmacy directors.

FAQ

Straight
answers

Have a different question? Ask it on a 30-minute call.

Book a call

Its ordering relied on fixed min/max levels and older averaging models that ignored seasonal patient numbers and local outbreaks. High-cost biologics were routinely overstocked and expired, wasting $12M a year. Manual ordering also added a 72-hour delay between a spike in patients and the replenishment order.

Stop paying for drugs that expire on the shelf

If fixed reorder levels leave your pharmacy overstocked on expensive drugs, we can help you forecast demand from patient volumes without exposing patient data.