OBJECTIVES: Knee cartilage damage is a common cause of referral for orthopaedic surgery. Treatment aims to reduce pain and symptoms by repairing cartilage. Microfracture, the current standard of care, yields good short-term clinical outcomes; however, treatment might fail after 2-3 years. A Chitosan-Beta glycerolphosphate bioscaffold is used as an adjunct to microfracture and demonstrates improvements in quantity and quality of repaired tissue, potentially reducing the risk of treatment failure. This study aimed to establish the economic value of bioscaffold versus microfracture alone in knee cartilage repair from the societal perspective, using Germany as the reference market. METHODS: A decision tree with a 20-year time-horizon was constructed, in which undesirable clinical events were inferred following initial surgery.  These events consisted of pain management, surgery and total knee replacement. Clinical outcomes were taken from the pivotal clinical trial, supplemented by other literature. Data and assumptions were validated by an internationally recognized Delphi panel. All relevant resource use and costs for procedures and events were considered. RESULTS: In a group of patients with all lesion sizes, the model inferred that bioscaffold yields a positive return on investment at year 4 (with 20-year cumulative cost savings of €6,448). Reducing the incremental risk of treatment failure gap between bioscaffold and microfracture by 25% to 50% does not alter this conclusion. Cost savings are greatest for patients with large lesions; results for patients with small lesions are more modest. CONCLUSIONS: The Chitosan-Beta glycerolphosphate bioscaffold potentially represents a cost-saving alternative for patients with knee cartilage injury by reducing the risk of clinical events through regeneration of chondral tissue with hyaline characteristics. Since the burden of this condition is high, both to the patient and society, an effective and economically viable alternative is of importance.