Economic models are increasingly important in providing clinical guidance on medical-technology use and background for reimbursement and pricing decisions. Economic modeling is an essential component of value demonstration in the healthcare sector. Additionally, most HTA agencies are demanding economic models combining both the clinical and economical evidence to inform strategic decisions. Our multidisciplinary teams at CHEORS are skilled in developing user-friendly, interactive models with sound methodology. These models include:
Most HTA agencies prefer cost-effectiveness models to determine the value of new healthcare interventions in terms of both cost and effectiveness. Our economic modelers employ several approaches to developing cost-effectiveness models including Markov and decision-analytic models across platforms such as MS-Excel and R.
Budget-impact models are unique as they can demonstrate the affordability of therapies or the budget impact of a formulary intervention. These models can also forecast the cost-savings per patient and/or population after a product launch.
Early-decision models can be developed based on early clinical experiences and expert opinions, as well as using extrapolations. These models play a crucial role in supporting investor decisions regarding the technology design as well as other strategic analyses.
Cost calculators are used to evaluate the cost associated with a treatment and to compare costs across different treatment programs. They may also be used to evaluate short-term return-on-investment informing payers as to resources required in the immediate future as well as which programs to prioritize based on greater revenue potential.
Country Adaptations of Economic Models
Our team also provides country adaptations of global models with the aim of developing precise estimates of economic impact. To create country-specific models our team may modify patient demographics, disease epidemiology, price of treatment, comparative products, healthcare-resource use, healthcare-resource costs, impact on quality of life, among others. Our team also has significant experience in model reductions including modification of the model according to the HTA-agency needs.
Health-economic model development is complex involving multiple assumptions and must be accurate, reliable, and consistent. Our experienced, multidisciplinary team scrutinizes each model and rigorously tests it including:
- Double programming models
- Developing testing module
- Pressure-testing models for errors
- Evaluating the functionality of models against predicted