OBJECTIVES: To evaluate the long-term health outcomes and economic consequences of the treatment of Insulin Detemir (IDet) in type 2 diabetes patients switching from insulin Glargine (IGla) in the setting of Chinese urban hospitals. METHODS: A published and validated computer simulation model of diabetes (the CORE Diabetes Model) was used to make the long- term (30 years) projection of health economic outcomes. The patient demographic information and clinical endpoints were derived from the PREDICTIVE subgroup study. The study was a large, multi-centre, 6 months observational study assessing the safety and efficacy of IDet in everyday clinical practice. HbA1c was reduced of -0.59 % by switching from IGla to IDet. Baseline risk factors and racial characteristic data were obtained from Chinese cohort studies. The market retail prices of medications were calculated to estimate treatment costs. The diabetes management and complications costs were obtained from Chinese published data and adjusted to 2009 values using the Chinese Consumer Price Index. An annual discounting rate of 3% was used for both health and cost outcomes. One-way sensitivities analysis was performed and illustrated that the results were robust. RESULTS: The treatment of IDet converted from IGla was projected to reduce the cumulative incidences of Eye disease, Renal disease, Ulcer, Cardiovascular disease, Cataract, End-Stage Renal Disease, Ulcer, Neuropathy, Myocardial Infarction events were reduced 0.293%,0.151%,0.794%,3.293%, 1.225% respectively. Patients’ time alive and free of complication was improved 0.15 year. Patient life expectancy was increased by 0.09 year and 0.36 quality adjusted life year (QALY) when converting to IDet. The costs of complications were reduced by 4,931 CNY (89,628 vs 94,559), resulting in a total direct medical cost saving of 684 CNY. CONCLUSIONS: The treatment of IDet improved patient health and economic outcomes, and was a cost-saving treatment approach in a Chinese setting.