OBJECTIVES: To estimate the economic impact of introducing automated Hematoxylin and Eosin (H&E) staining as the gold standard in cancer diagnosis from China Healthcare Security’s (CHS) perspective.

METHODS: A budget impact model was developed to assess the difference in total healthcare costs and per patient per year (PPPY) costs before and after implementing automated H&E staining for cancer diagnosis, specifically lung, liver, and rectal cancer, within a hypothetical population of 200,000 patients in a province of China. The model considered testing fees (automated and manual H&E staining), supportive care and hospitalization costs prior to cancer diagnosis, and healthcare costs resulting from delays in determining cancer stages. All costs were estimated in 2023 Chinese Yuan. Model inputs, including incidence of cancer, percentage of metastatic cancer, percentage of surgery, rate of cancer progression, and handling time and retest rate of each test were obtained from published sources or expert opinions. In the base case, the market share of automated H&E staining was assumed to be 50%.

RESULTS: In the base case, the inclusion of automated H&E staining resulted in a decrease of ¥30 million in total budget and ¥759 PPPY from CHS’s perspective. This budget reduction was primarily attributed to shorter handling time, lower retest rate, decreased probability of cancer progression, and reduced supportive care and hospitalization costs due to shorter waiting time for cancer diagnosis. The results were most sensitive to the handling time of tests.

CONCLUSIONS: The introduction of automated H&E staining for cancer diagnosis provides an effective approach with a decrease in the healthcare budget from CHS’s perspective. This study demonstrates the potential benefits of implementing automated H&E staining in cancer diagnosis, including improved efficiency, reduced costs, and shorter waiting time. These findings have implications for improved cancer care and resource allocation in China.