Health economic models are developed to evaluate health and cost outcomes following an introduction of a new healthcare intervention.
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Health economic models are developed to evaluate health and cost outcomes following an introduction of a new healthcare intervention. Usually this implies development of a cost-effectiveness model that estimates “value for money” and a budget impact model that estimates financial impact to healthcare payer.
Health economic models are tools developed to demonstrate value for money and budget impact of a new healthcare intervention. They are essential instruments to achieve payer reimbursement within markets with mature and developing Health Technology Assessment (HTA) institutions.
Health economic models help to extrapolate outcomes of interest beyond the duration of a clinical trial. They are also designed to capture and accumulate all health and cost consequences of a healthcare intervention over a horizon as defined by study objectives and methods.
Conceptualisation and development of a standard budget impact model or cost-calculator in Excel for payer communication.
Development of cost-effectiveness (Markov cohort) models in Excel, Tree age and R for HTA submission
Incidence or prevalence based models estimating target population of interest in a given year.
Models for early development programmers. They estimate price ranges given Target Product Profile (TPP) and willingness to pay for a QALY or LY.
Health economic model that accounts for multiple disease areas or multiple interventions and produced ranked order (league table) given various healthcare objectives.
Risk sharing model addon allows to account for various reimbursement rates and achievements in defined health milestones such as efficacy, start/stop criteria, treatment responder
Usually health economic models are commissioned by pharmaceutical and medical device companies or a healthcare authority responsible for decision-making at a national or regional level. They are developed by specialized consulting agencies or academic groups. Health economic models form a part of the HTA dossier submission or they can be presented separately to individual payers (insurance companies, health funds, other decision-makers responsible for listing or budgeting new medicines.
Usually health economic models are commissioned by pharmaceutical and medical device companies or a healthcare authority responsible for decision-making at a national or regional level. They are developed by specialized consulting agencies or academic groups. Health economic models form a part of the HTA dossier submission or they can be presented separately to individual payers (insurance companies, health funds, other decision-makers responsible for listing or budgeting new medicines.
Model developers should properly evaluate and balance the time needed to assemble a model and whether by adding more input parameters and complexity (number of health states) leads to more precise results.
We following the following key steps when developing economic model in healthcare:
analysis of relevant sources of model input data. Including acquisition costs, medical costs, quality of life (QoL ), treatment efficacy or effectiveness, target population eligible for treatment.
Includes assessing internal and external model validity, review and validation by expert panel and advisory board, running extreme scenarios, calibration of model outcomes to observed real world data and other activities for making model outcomes
Performing regular model updates following emergence of new input data and assumptions, adding new comparators, localisation to other country data.
Evaluation of comparators (standard of care, best supportive practive), clinical differentiators, hard and surrogate outcomes that are relevant for answering research question.
Analysis of relevant sources of model input data. Including acquisition costs, medical costs, quality of life (QoL ), treatment efficacy or effectiveness, target population eligible for treatment.
Developing a simulation model in most appropriate software package. Adding uncertainty analysis that includes one-way sensitivity analysis (OWSA) and probabilistic sensitivity analysis (PSA).
Includes assessing internal and external model validity, review and validation by expert panel and advisory board, running extreme scenarios, calibration of model outcomes to observed real world data and other activities for making model outcomes
Includes preparation of the abstract and poster to be presented at a scientific conference and development of a manuscript to be published in a peer review journal.
Performing regular model updates following emergence of new input data and assumptions, adding new comparators, localisation to other country data.
The following are useful links to best practices in health economic modeling evaluation:
Our team is a global leader in health economics models and value access materials development and digitisation, proven by our track recording within pharmaceutical and medical device sector.
