System and Method For Grouping Medical Codes For Clinical Predictive Analytics

A method for predictive modeling using medical information comprising:

• electronically receiving at a computer system a data set of medical diagnosis codes;
• applying indicator variables to the data set;
• defining at the computer system a target and one or more threshold conditions;
• calculating by a supervised variable grouping engine executed by the computer system, for each indicator variable, a vector length and a distance to a target vector, wherein each indicator variable initially forms a group;
• automatically combining two groups of indicator variables that satisfy threshold conditions to create a combined group;
• recalculating the combined group's vector length, distance to the target vector, and distance to vectors of other remaining groups;
• iteratively combining and recalculating until there are no two groups that satisfy the threshold conditions or until a satisfactory number of groups is formed;
• generating an altered data set of medical code groupings with reduced dimensionality;
• and
• inputting the altered data set into a predictive model.

A non-transitory computer-readable medium having computer-readable instructions stored thereon which, when executed by a computer system, cause the computer system to perform the steps of:

• electronically receiving at a computer system a data set of medical diagnosis codes;
• applying indicator variables to the data set;
• defining at the computer system a target and one or more threshold conditions;
• calculating by a supervised variable grouping engine executed by the computer system, for each indicator variable, a vector length and a distance to a target vector, wherein each indicator variable initially forms a group;
• automatically combining two groups of indicator variables that satisfy threshold conditions to create a combined group;
• recalculating the combined group's vector length, distance to the target vector, and distance to vectors of other remaining groups;
• iteratively combining and recalculating until there are no two groups that satisfy the threshold conditions or until a satisfactory number of groups is formed;
• generating an altered data set of medical code groupings with reduced dimensionality;
• and
• inputting the altered data set into a predictive model.