Case Study: a Fortune 500 health solutions company achieves $20M monthly pharmacy savings with Blend360

a Fortune 500 health solutions company saves $20 million monthly with Blend360

The customer, a Fortune 500 health solutions company, operated a Pharmacy Benefits Management system using price guarantee contracts with insurers and pharmacies. Their challenge was that deviations from projected drug utilization rates could create significant year-end financial liabilities. Blend360 was engaged to develop a solution to minimize this risk.

Blend360 developed an AI-powered solution utilizing time series forecasting to predict drug utilization and linear programming to optimize prices. This engine was productionized using a Google Cloud Platform Kubernetes pipeline. The solution provided the client with monthly publications of optimal prices for over 26,000 drugs, resulting in $20 million in monthly savings and fostering stronger partnerships with hundreds of insurance clients.