An Introduction to Budget Impact Analysis
Faculty: Russell Becker, Russell Becker Consulting, Chicago, IL, USA
This Module will introduce novice learners to budget impact analysis as it is used by drug developers, payers, providers, and national regulatory agencies to determine the economic impact of a given health care interventions on scarce health care budgets. Upon completing the module, participants will understand the elements of budget impact modeling, have learned the differences in budget impact modeling standards around the world, and have been instructed regarding the steps for building a basic budget impact model.
The model will begin with introducing the concept of budget impact analysis in terms of definition, the purposes/usages, and the audiences for the analysis. Next, a small generic, hypothetical example of a budget impact model that will give the participants a general idea of what is meant by basic budget impact analysis so that they can carry the basic concept forward to the more detailed discussion that follows in the remainder of the presentation.
The next section of the module will discuss various existing guidelines for budget impact analysis. The main ideas from the ISPOR guidelines (published in 2007) will be explained including the key analytic framework, inputs and data sources, and reporting format. Variations from the ISPOR guidelines in other budget impact analysis guidelines and recommendations from other major countries payers and national regulatory agencies will also be discussed.
The third section of the module will build on the first two sections by considering the principles of good budget impact analysis and model design. The principles will include:
> Use of best available evidence
> Ease of use
Examples from both existing published models and from hypothetical examples will clarify each principle. Recommendations from existing guidelines will supplement and support this discussion as well.
Finally, the module will explain the process for designing a budget impact model, leaving participants with a good foundation for conducting basic budget impact analysis using a well-developed economic model. The discussion will be supplemented with examples from published budget impact models.
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