Budget Impact Modelling for SaMD and AIaMD

Budget impact modelling (BIM) is the most simplistic form of economic evaluation that considers the affordability of adopting a new technology. The budget impact model also serves as a sales tool to support technology suppliers on their procurement journey.

The BIM approach synthesises relevant data on a new technology to assess the change in condition-related costs to the healthcare provider associated as a result of the potential impact the proposed intervention could have on a patient. For example, the change in expenditure resulting from a reduction in the number of investigations required, hospital admissions, time spent with specialists or the number of adverse events experienced by patients. This assessment is typically carried out over a one to five-year time period since this aligns with the financial decision-making horizons of payers e.g. hospitals, NHS trusts and integrated care systems (ICSs).

Consequently, the primary use of a BIM is to assess the affordability of the new intervention from the perspective of these budget holders. At Hardian we create flexible BIM tools with the capability to generate bespoke calculations for individual customers during your sales discussions, strengthening your sales force.

Best Practices for Budget Impact Modelling

Align with internationally recognised standards.

Best practices for developing a BIM are set out by The Professional Society for Health Economics and Outcomes Research (ISPOR). When conducting a budget impact analysis the first step is to identify the eligible population. ISPOR guidance highlights the importance of determining variation in characteristics within this population and how the intervention impacts these subgroups differently, for example by sex, disease severity, age and ethnicity.

ISPOR and The National Institute of Healthcare and Excellence (NICE) give recommendations on the factors that should be included in a BIM. At the very least a BIM should account for direct medical costs and costs relating directing to the technology comparator e.g. implementation and maintenance costs. ISPOR states that indirect costs such as productivity are not typically included. However, for some new technologies, the primary value offering falls outside of the direct medical cost category, therefore the inclusion of indirect or direct non-medical costs such as litigation claims and monetary time savings might be appropriate.

Finally, the analysis should account for how the budget impact or saving of the intervention is affected by model uncertainty in a sensitivity analysis. Sensitivity analysis also allows the supplier to identify the value components that generate the most or least cost savings.

Case Study

How Hardian solves the problem.

Hardian undertakes many BIM exercises with their clients. All models are supported by user guides to ensure sufficient training of your sales force when using the budget impact tool during discussions with payers.

Your health economics team

Unlock the value of your health tech innovation with Trishal, Lucy, Heenal and Julia, our health economics specialists who excel at showcasing your product's cost-effectiveness and budgetary impact through data-driven research and economic models, facilitating stakeholder engagement and market adoption.