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| Cost per ADE avoided | $5,000-$10,000 | Industry average |
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|**Monthly savings**| 100 x $5,000-$10,000 |**$500K-$1M/month**|
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| Step | Calculation | Result | Evidence |
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|------|------------|--------|----------|
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| PGx interaction rate | 10,000 x 2% | 200 DGIs/month | Conservative vs. 30-60% DGI prevalence [17]|
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| High-specificity alert interception | 200 x 50% |**100 prevented ADEs/month**| PGx alerts outperform standard CDS (<10% acceptance) [18]|
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| Cost per preventable ADE | $5,000-$10,000 | Inflation-adjusted | Bates 1997: $4,685/preventable ADE in 1997$ [19]|
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|**Monthly savings**| 100 x $5,000-$10,000 |**$500K-$1M/month**||
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**Note on conservatism:** The 2% interaction rate is intentionally scoped to interactions highly likely to cause serious ADEs without intervention. Published DGI prevalence is far higher: Pasternak et al. found 30-60% of genotyped patients had drug-gene interactions [17], and the Vanderbilt PREDICT program found 64.7% of outpatients received drugs with PGx associations [5]. The 50% interception rate reflects high-specificity pharmacogenomic alerts (patient genotype + specific drug), which perform substantially better than standard CDS alerts that suffer 90% override rates [18].
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### Scaling Estimate
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This aligns with published literature: PGx testing saves $3,962 per patient per year [4], and 91% of patients have actionable variants [5]. The market opportunity is real, the clinical need is documented, and the regulatory environment is supportive.
The stated $500K-$1M/month estimate sits in the middle of the sensitivity range ($60K-$2.25M), supporting its use as a defensible central estimate.
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## 7. Why Rust
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[16] UCSF Health, "Clinical implementation of preemptive pharmacogenomics testing for personalized medicine," PubMed, 2024. https://pubmed.ncbi.nlm.nih.gov/39665424/
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[17] Pasternak et al., "Prevalence of Drug-Gene Interactions in a Health System Biorepository," Clinical and Translational Science, 2023. https://pmc.ncbi.nlm.nih.gov/articles/PMC9926071/
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[18] Felisberto et al., "Prevalence and Determinants of Override Rates in Clinical Decision Support Systems: A Meta-Analysis," Health Informatics Journal, 2024. https://journals.sagepub.com/doi/10.1177/14604582241263242
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[19] Bates et al., "The Costs of Adverse Drug Events in Hospitalized Patients," JAMA, 1997. https://jamanetwork.com/journals/jama/fullarticle/413545
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*Updated: 2026-02-24 | Terraphim Medical Pipeline v1.2.0*
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### Impact Estimate
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A health system processing 10,000 prescriptions/month with a 2% pharmacogenomic interaction rate = 200 potential ADEs/month. Even a 50% catch rate through automated KG-grounded validation = **100 prevented adverse events per month per health system**. At an average ADE cost of $5,000-$10,000 per incident, this represents $500K-$1M/month in avoided costs -- before counting prevented hospitalisations and improved patient outcomes.
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A health system processing 10,000 prescriptions/month with a conservatively estimated 2% pharmacogenomic interaction rate (vs. 30-60% drug-gene interaction prevalence in genotyped populations [Pasternak et al. 2023, Clin Transl Sci]) = 200 drug-gene interactions requiring clinical review per month. A 50% interception rate through high-specificity KG-grounded alerts (compared to <10% acceptance for standard CDS alerts [Felisberto et al. 2024, Health Informatics Journal]) = **100 prevented adverse events per month per health system**. At an average preventable ADE cost of $5,000-$10,000 per incident (Bates et al. 1997 JAMA, inflation-adjusted from $4,685) this represents $500K-$1M/month in avoided costs -- before counting prevented hospitalisations and improved patient outcomes.
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