Vendor under review: Veritas Rx Insight (fictional). Pitched product: an AI assistant that predicts drug shortages and recommends purchase adjustments for a 400-bed community hospital.
The product runs on a large general-purpose model rented from a major provider, hosted on a public cloud. The vendor confirmed both names when asked directly, but neither appears in the sales material. A signed BAA exists with the cloud host; the model provider's data terms were "available on request" and are still not in hand.
The team of 14 is mostly sales and integration. One validation study exists: a retrospective test on two health systems' purchase histories, run by the vendor itself. No independent validation, no published error rates, no description of the review process for model updates.
The pitch says "your data stays yours." The draft MSA says purchase histories may be used "to improve the service" in de-identified form, with no definition of de-identification and no exit clause for accumulated learning. The tuned model belongs to the vendor.
Claimed: "up to 30 percent fewer stockouts." No baseline stated, no measurement window, no comparable site offered. In operational units the promise is undefined.
Support is business-hours email with a 24-hour response target. There is no defined process for reporting a harmful or wrong recommendation, and the vendor has not yet handled one.
Direct sales today, with a GPO listing "in progress." Implementation, training, and updates are all owned by the vendor's integration team of three people.
The website lists eight verticals; hospital pharmacy is one. Two of the eleven current customers are hospitals. The roadmap leads with retail and distributor analytics. This hospital would be an early site, and its purchase data would be the most valuable thing it contributes.
Seed-funded, 14 staff, renting expensive model capacity. Unit economics unknown. No continuity commitment exists if the company is acquired or shuts down.
Pilot is free for six months, then a per-facility subscription. The free pilot's terms grant the de-identified data rights in block 3. The pricing after year one is "to be discussed."
This proposal sits at risk review. It should not advance to approve-and-scope until the block 2 and block 3 evidence arrives. If it advances, the pilot should have a defined baseline, a named owner, human sign-off on every recommendation, and kill criteria agreed before launch.
Facts: rented model, cloud BAA signed, one self-run validation study, two hospital customers, free pilot with data-rights terms. Inferences: the hospital would be an early site and a data source; unit economics are likely unproven. Unknowns: error rates, de-identification method, exit terms, year-two pricing, continuity plan. The unknowns are the diligence agenda.