Budget Impact Model

Budget Impact Model (BIM) – is a type of a health economic decision modeling tool that calculates expected extra budget and cost-offsets following an introduction of a new healthcare technology.

Budget impact model is a required part of a health technology assessment and value dossier submission for pharmaceuticals and medical devices reimbursement. It allows healthcare payers to better perform budgeting and accounting. It is also a powerful decision-making tool to perform what-if analysis. For example – evaluate current and future market shares of different healthcare interventions, their related health and outcomes over time.

Our team of experts and health economic modeling will help to conceptualize and program budget impact model interface based on clinical and safety profile of a new product, acquisition costs, administration costs, healthcare costs, societal costs and other expenses from payer or societal perspective.

Budget impact model development services:

Digital Health Outcomes predominantly develops budget impact model template in MS Excel, as we believe this is one of the most convenient and user-friendly modeling environments for performing simple budget impact analysis.

De-novo budget impact model development.

Desk research and data collection. Review of published economic evaluations in the target disease area. Development of a new budget impact model in MS Excel.

Modification of an existing model.

Introduction of changes to the model structure and it’s parameters. Addition of new comparators, costing methods, sensitivity analysis.

New interactive budget impact model based on existing MS Excel version.

Model migration to DHO eModels Platform – end-to end software solution for model presentation and lifecycle management (Administration, Analytics, Central updating features).

Model maintenance and country support.

Provision of help-desk support based on daily modeling activities (data collection, updates, model validation and quality assurance).

Model publication as abstract and poster at international conference.

Development and submission of the single or multi-country budget impact analyses based on local model adaptation.

Model simplification and validation.NEW

Transformation of the markov chain based models into prevalence based models. Validation of the existing models.

We deliver budget impact models in the following formats:

Basic model in MS Excel

Interactive model in HTML

Mobile version for iPad/
Android tablet devices

Modeling methodology:

To design a new or adapt an existing budget impact model we aim to understand which key inputs should be selected, what are the treatment pathways and interventions and other information required to construct a budget impact model we conduct a review of published economic evaluations.

Budget impact modeling approach:

We analyze key data involved to construct a budget impact model. To construct robust economic differentiation it is most important to have a solid and statistically significant treatment effect data and as well as the fair and value-based price.

  • Conduct a review a published economic evaluations
  • Understand treatment pathways
  • Perform market analytics and collect latest sales data from outpatient (pharmacy) and inpatient (hospital) sectors
  • Construct a simulation model in MS Excel
  • Validate the model with a team of experts (advisory board, medical, legal, promotional review committees)
  • Globally approve the model
  • Rollout the market in target markets
  • Collect feedback from end-users
  • Adapt the global model to meet multiple country needs

Data inputs of a budget impact model:

We analyze key data involved to construct a budget impact model. To construct robust economic differentiation it is most important to have a solid and statistically significant treatment effect data and as well as the fair and value-based price.

  • Epidemiology. incidence and prevalence rates
  • Acquisition and administration costs
  • Healthcare costs and tariffs
  • Treatment effect (efficacy, risk rations)
  • Model settings (costs to include, time horizon, other settings)
  • Comparators to be included in the analysis
  • Market shares

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