Counterfactual Policy Learning for Personalized Treatment Using SGLT2 Inhibitors

Personalized medicine aims to tailor treatments to individual patients, but its implementation is limited by scarce clinical resources and heterogeneous treatment effects. Electronic health records now offer longitudinal data that can support data-driven therapy selection. We focus on SGLT2 inhibitors, medications with broad metabolic and cardiovascular benefits, whose clinical impact varies significantly based on individual patient profiles. We propose a counterfactual Structural Causal Model (SCM) to estimate individual treatment effects (ITE) of SGLT2 inhibitors from observational data. The model assumes counterfactual stability and uses a Gumbel-Max sampling mechanism to capture stochastic treatment assignment while enabling differentiable inference. Optimal treatments are defined by maximizing the counterfactual value of future diagnostic outcomes. We evaluate the Counterfactual Gumbel-Max SCM using a doubly robust value estimator and show that, across diagnostic categories, it outperforms real-world prescriptions in predicted treatment value, highlighting subpopulations where SGLT2 inhibitors yield superior outcomes. By integrating causal inference with electronic health data, this framework provides individualized counterfactual reasoning about SGLT2 treatment effects and can support clinicians in identifying optimal therapies for type 2 diabetes and comorbid conditions.