Health Economics & Outcomes Research Economic Evaluations

Economic Evaluations

In today’s global healthcare environment, the demonstration of a product’s safety and efficacy is no longer sufficient to assure comprehensive global market access. 

Economic evaluations create the basis for value demonstration of new and existing healthcare technologies. Most economic evaluations contain some type of economic model uniquely designed to estimate the impact of new and existing healthcare technologies across a wide variety of global marketplaces. CTI’s HECOR team has the skills and experience in building these models through a wide variety of designs driven by product attributes and global market access needs. Some of the models our team often work on include:

CTI’s HECOR team has experience in building economic models suitable for submission to global health technology assessment (HTA) groups. Results of our economic evaluations are often components of a Core Value Dossier and subsequent publication or presentation through Peer-Reviewed Medical Communications. We can assist you in developing a strategy to communicate your product's value story through presentation and publication of abstracts, posters, and manuscripts where and when appropriate.

Cost-Effectiveness and Cost Utility Models

Cost-effectiveness and cost-utility models are designed to compare the incremental clinical and economic impact of one healthcare technology compared to another with the usual outcome expressed as cost per life year gained (LYG) or cost per quality-adjusted life year (QALY) gained, respectively. The result of this comparison is the incremental cost-effectiveness ration (ICER), that has become an integral part of HTA dossiers in many parts of the world.

CTI’s HECOR team has substantial experience in building cost-effectiveness and cost-utility models through the latest computer software applications. These models often form the basis for comparative effectiveness assessments of new healthcare technologies compared to the most commonly used comparator(s) within each marketplace. We have experience in developing everything from simple decision tree models to complex Markov models with interactive submodules.

Budget Impact Models

The global healthcare system has become increasingly cost-conscious over the past few decades. The pharmaceutical, medical device, and diagnostic industries have grappled with ways to clearly and concisely present the economic value of their products to global healthcare payers. A budget impact model (BIM) measures the net aggregate cost of treatment with a particular therapy for a user-defined group of patients within a general or specific population.

Budget impact models can estimate the cost of a new healthcare technology to global healthcare payers. CTI’s HECOR team can design a budget impact model that captures all the known economic consequences of a new healthcare technology compared to normal medical practice. Cost offsets often include:

  • Reduced administration costs
  • Changes in hospitalization length of stay and intensity of care
  • Changes in required medical procedures and resulting health professional visits.

We can meet your timeline requirements to include BIMs for use in a Core Value Dossier with enhanced graphics, navigation, and macros to provide payers a dynamic and user-friendly model experience. These BIMs provide a starting point for an exchange of ideas between the manufacturer and payer, or health technology assessment body, in a wide variety of contexts and across major geographies. CTI’s HECOR team can design a core BIM that can be customized or adapted to different countries, regions and targeted towards specific global payers.

Practical Model Interfaces

Communication of cost-effectiveness, cost-utility, and budget impact model (BIM) results are often difficult due to the complex and sometimes cumbersome computer software programs used to build them. Translation of these results into simpler and more straight-forward systems to view and revise assumptions allows the manufacturer to display the impact of different assumptions on the modeling results, in real-time, while presenting directly to a payer.

CTI’s HECOR team has substantial experience in building interactive tools to explore, analyze, and communicate economic modeling results. We can build manageable economic model interfaces which allow the user to systematically examine relationships between outcomes and key modifying variables.

Our practical model interface solutions allow users to identify previously unseen relationships between a new healthcare technology and clinical outcomes. Our user-friendly model interfaces can be an essential tool in communicating complex health economic modeling results to payers. Our model interface solutions provide the opportunity to maximize exposure of economic modeling results through training and dissemination to specialized sales representatives and account management teams within our client companies.

The Economic Scorecard

The economic scorecard is designed to assist our clients as a preliminary economic assessment of their new technology. The economic scorecard allows our clients to update and validate their preliminary assumptions with independent scientists and health economists that have practical market experience.

The economic scorecard can be summarized as:

  • A directed market evaluation focusing on three critical components: market volume, economic value and reimbursement
  • Built from the published medical literature with some simulation modeling
  • Useful and objective for the initial market appraisal of a new healthcare technology

The economic scorecard can assist our clients in the following tasks:

  • Help make go or no-go resource allocation decisions for clinical trials
  • Define value to investors or internal stakeholders
  • Selection of the priority indication over other potential uses
  • Identification of payer mix
  • Summarize mechanics and incentives in the reimbursement process (e.g. physician administered compared with pharmacy or hospital)
  • Set expectations and help define economic endpoints for future clinical trials

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