Budget impact analysis
Forecasting impact of introducing medical technology on payers’ budget
For every payer – government, insurance company or medical facility – it is essential that their expenditures remain predictable when integrating new drugs into clinical practice. The budget impact analysis (BIA) helps to address this challenge. BIA considers payers's costs associated with the treatment of the target patient population before and after start of drug’s reimbursement.
To perform BIA, one needs to estimate the number of patients eligible for therapy with the proposed drug, determine available treatment options for such patients and their market shares in the current practice. Then, it is necessary to determine the potential market share of the new drug after the start of its reimbursement. Finally, the costs of treating the target patient population in current practice and after the introduction of the new drug are calculated. The difference between them represents the budget impact.
To perform BIA, one needs to estimate the number of patients eligible for therapy with the proposed drug, determine available treatment options for such patients and their market shares in the current practice. Then, it is necessary to determine the potential market share of the new drug after the start of its reimbursement. Finally, the costs of treating the target patient population in current practice and after the introduction of the new drug are calculated. The difference between them represents the budget impact.
Budget impact analysis concept
In most cases, newer drugs are more expensive than existing alternatives, leading to an increase in payer’s expenses upon their introduction. However, innovative medications often reduce associated costs of treating patients, such as hospitalizations or managing adverse events. Thoughtful consideration of these factors during BIA enhances the attractiveness of the new medication for the payer and increases the likelihood of its inclusion in reimbursement lists or expanding its scope of use.
Our team has accumulated significant experience in conducting BIA for new pharmaceuticals, enabling us to address these challenges in the most effective manner. If your organization requires a BIA for a pharmaceutical product, please contact us, and we will make every effort to meet your needs!
Our team has accumulated significant experience in conducting BIA for new pharmaceuticals, enabling us to address these challenges in the most effective manner. If your organization requires a BIA for a pharmaceutical product, please contact us, and we will make every effort to meet your needs!
Selected publications
Budget impact analysis
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Email: info@pharmanalytics.me
United Arab Emirates, Ras Al Khaimah, Al Hulaila Industrial Zone-FZ, Shed No.23, W6_SO15
United Arab Emirates, Ras Al Khaimah, Al Hulaila Industrial Zone-FZ, Shed No.23, W6_SO15
