REAL-WORLD EVIDENCE METHODOLOGY FOR ECONOMIC EVALUATION OF CLINICAL AI: COST-EFFECTIVENESS OF AN IMAGING ALGORITHM FOR INCIDENTAL DETECTION OF EMPHYSEMA
Author(s)
Alexandra Miller, MPH, MS, PharmD, Jamie Dermon, MD, Shivaani Prakash, MSc., PhD.
Dandelion Health, Locust Valley, NY, USA.
Dandelion Health, Locust Valley, NY, USA.
OBJECTIVES: Artificial intelligence (AI) has been used for disease detection, but evidence of its impact is limited. We present a methodology for evaluating the potential benefit of clinical AI using real-world data and health economic modeling, applied to an imaging algorithm detecting incidental emphysema.
METHODS: The ClearRead CT | LTA prototype algorithm (Riverain Technologies) was applied retrospectively to chest CT scans of patients from Dandelion Health (a longitudinal, multimodal clinical data platform) without a prior emphysema diagnosis. Patients were identified as true-positive (“Early Diagnosis”) (n = 212), diagnosed with emphysema after CT, and false-negative (“Delayed Diagnosis”) (n = 90), not diagnosed after scan but detected by the algorithm with confirmation from a panel of radiologists. Healthcare utilization and estimated costs were calculated for each cohort after balancing with inverse probability treatment weighting. A hybrid decision-tree Markov model with four states (stable, moderate, severe emphysema, and death) projected five-year outcomes from the payer perspective. Model inputs incorporated sensitivity to represent “Early Diagnosis” and “Delayed Diagnosis” pathways. Deterministic and probabilistic sensitivity analyses were conducted by sex, age, race/ethnicity, and pre/post-COVID-19.
RESULTS: The algorithm demonstrated 61.9% sensitivity versus literature-reported 40.6% for conventional radiology. Base case incremental cost-effectiveness ratio was $122,714/QALY. At a $150,000/QALY threshold, the base case had net monetary benefit (NMB) of $624 per patient with 53% probability of cost-effectiveness. Value was higher in non-white patients (NMB: $5,763, 71% probability), males ($4,388, 68%), patients less than 65 years old ($3,665, 64%), and pre-COVID-19 patients ($3,290, 66%). Severe-state costs were the strongest driver of value.
CONCLUSIONS: An imaging algorithm identifying incidental emphysema was found to be cost-effective in multiple scenarios. Health economic modeling combined with multimodal data can assess the potential benefit of clinical AI and identify where deploying AI is cost-effective. As use of clinical AI expands, determining the impact of AI will become increasingly important.
METHODS: The ClearRead CT | LTA prototype algorithm (Riverain Technologies) was applied retrospectively to chest CT scans of patients from Dandelion Health (a longitudinal, multimodal clinical data platform) without a prior emphysema diagnosis. Patients were identified as true-positive (“Early Diagnosis”) (n = 212), diagnosed with emphysema after CT, and false-negative (“Delayed Diagnosis”) (n = 90), not diagnosed after scan but detected by the algorithm with confirmation from a panel of radiologists. Healthcare utilization and estimated costs were calculated for each cohort after balancing with inverse probability treatment weighting. A hybrid decision-tree Markov model with four states (stable, moderate, severe emphysema, and death) projected five-year outcomes from the payer perspective. Model inputs incorporated sensitivity to represent “Early Diagnosis” and “Delayed Diagnosis” pathways. Deterministic and probabilistic sensitivity analyses were conducted by sex, age, race/ethnicity, and pre/post-COVID-19.
RESULTS: The algorithm demonstrated 61.9% sensitivity versus literature-reported 40.6% for conventional radiology. Base case incremental cost-effectiveness ratio was $122,714/QALY. At a $150,000/QALY threshold, the base case had net monetary benefit (NMB) of $624 per patient with 53% probability of cost-effectiveness. Value was higher in non-white patients (NMB: $5,763, 71% probability), males ($4,388, 68%), patients less than 65 years old ($3,665, 64%), and pre-COVID-19 patients ($3,290, 66%). Severe-state costs were the strongest driver of value.
CONCLUSIONS: An imaging algorithm identifying incidental emphysema was found to be cost-effective in multiple scenarios. Health economic modeling combined with multimodal data can assess the potential benefit of clinical AI and identify where deploying AI is cost-effective. As use of clinical AI expands, determining the impact of AI will become increasingly important.
Conference/Value in Health Info
2026-05, ISPOR 2026, Philadelphia, PA, USA
Value in Health, Volume 29, Issue S6
Code
MSR226
Topic
Methodological & Statistical Research
Topic Subcategory
Artificial Intelligence, Machine Learning, Predictive Analytics
Disease
No Additional Disease & Conditions/Specialized Treatment Areas, SDC: Respiratory-Related Disorders (Allergy, Asthma, Smoking, Other Respiratory)