Project 04 / 10 · Forecast & ML

Hospital Cost Prediction

End-to-end ML pipeline predicting patient costs on 2.5M real NY state records — SHAP-explained, uncertainty-aware, built for clinical finance decision-support.

01 / Context

The problem

The system estimates inpatient cost from demographic and clinical variables while exposing uncertainty and the drivers behind each prediction, making the output useful for finance decisions rather than just reporting a point estimate.

02 / System workflow

From input to output

  1. 01SPARCS records
  2. 02Leak-safe preprocessing
  3. 03Model benchmark
  4. 04SHAP + intervals
  5. 05API + dashboard

03 / Architecture

Inside the system

A1

A scikit-learn ColumnTransformer handles imputation, scaling, and encoding before Ridge, Random Forest, XGBoost, LightGBM, and a PyTorch MLP are benchmarked.

A2

Optuna tunes candidate models and MLflow records parameters, metrics, and artifacts; the selected model is served by FastAPI.

A3

A six-tab Streamlit interface supports interactive prediction and analysis, with Docker Compose coordinating the API, dashboard, and MLflow services.

04 / Engineering decisions

What shaped the build

Decision 01

Benchmark before selection

Five model families are compared against a linear baseline rather than presenting one model in isolation.

Decision 02

Explain uncertainty

SHAP explains feature influence and quantile regression returns calibrated 80% prediction intervals.

Decision 03

Separate model generations

The repository reports v1 full-data and v2 sampled-pipeline metrics separately because filtering changes the RMSE scale.

05 / Evidence

Measured, not implied

0.876

LightGBM R²

Best v2 result on a 150K-row spaced sample with 18 features.

33%

RMSE reduction

LightGBM improvement over the Ridge baseline.

2.5M

Records analyzed

Real New York SPARCS discharge records used for cost-driver analysis.

06 / Delivery

What shipped

  • 01FastAPI provides single and batch prediction, health, metrics, and model-list endpoints.
  • 02The response includes predicted cost, selected model, feature list, and confidence interval bounds.
  • 03Docker Compose supports one-command deployment of inference, dashboard, and experiment tracking.

Constraint documented

Errors rise sharply for stays above $50K, and 74% of these rare high-cost cases are under-predicted. The system therefore returns wider uncertainty for high-acuity cases.