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What Will Medicare Pay for This Hospital Stay?

For a given diagnosis group and hospital, what is Medicare's average payment per stay? Hospitals and researchers use the estimate to spot unusual prices and plan budgets.

Use caseHealthcarePredictionModel evaluation

The table

US hospitals in 2019 with diagnosis group, location, rural or urban status and discharges, and the average Medicare payment. It's in Welt's research catalogue as Medicare Inpatient Hospitals by Provider and Service (2019), 188,806 rows by 13 columns, licensed Public. The catalogue measures its signal at 0.45. At 188,806 rows and 12 features the table is larger than the model limits allow, so the walkthrough evaluates and fits on a seeded sample of 8,000 rows. TabICLv2 and Kumo Tabular Medium compete.

Walkthrough

  1. Load it from the catalogue

    Find the table, read its recorded target and print the column names.

    import pandas as pd
    from welt import Client
    
    with Client() as client:
        item = client.research_datasets(q="Medicare inpatient hospitals provider service 2019", limit=1)["items"][0]
        info = client.research_dataset(item["id"])
        data = client.load_research_dataset(item["id"])
    
    target = info["targets"][0]
    target = target["name"] if isinstance(target, dict) else target
    print([column["name"] for column in info["schema"]], target)
  2. Pick the rows

    Set aside 20 rows to predict at the end. The models learn from a seeded sample of 8,000 of the rest, the most this table's width allows.

    known = data.dropna(subset=[target])
    new_rows = known.sample(20, random_state=1)
    table = known.drop(new_rows.index).sample(8000, random_state=7)
  3. Compare the models and predict

    The models compete on the same folds against a simple guess, then the top-ranked one is fitted on the whole table. RMSE and MAE are average errors in the target's own units, so lower is better. The last table puts each prediction next to the real answer.

    with Client() as client:
        evaluation = client.evaluate(table, target, task="regression", seed=7,
                                     models=["tabicl-v2", "kumo-medium"])
        model = evaluation.fit()
    
    print(evaluation.summary()[["name", "rank", "rmse_mean", "mae_mean"]])
    features = new_rows.drop(columns=target)
    print(pd.DataFrame({"actual": new_rows[target].values, "predicted": model.predict(features)}))

What you get

A payment estimateFor any hospital and diagnosis group.
Unusual pricesPayments far from the estimate stand out.
Text columns handledDiagnosis groups and locations go in as they are.

Try it

Use Open with to run the research datasets notebook in Colab, Kaggle or Jupyter and search for "Medicare inpatient hospitals provider service 2019", or run the code above after pip install "welt-client[parquet]".