Budget impact analyses are used to estimate the likely change in expenditure to a specific budget holder resulting from a decision to reimburse a new healthcare intervention or some other change in policy at an aggregate population level. The budget (or financial) impact is usually calculated using a budget impact model, over a period of 3 to 5 years, at a national level or for more local healthcare payers and providers. In contrast to cost-effectiveness analyses, which are used to estimate value for money, analyses using budget impact models assess affordability. Two scenarios are usually compared: a world in which the new intervention or policy is implemented, and a counterfactual world without the new intervention. Each scenario takes into account population size, patient eligibility, speed of uptake and market share of the intervention, as well as many of the inputs associated with a model-based cost-effectiveness analysis. Budget impact models are commonly used by local or national-level decision makers for planning purposes, especially where (extra) expenditure in one budget is offset by savings in another.
How to cite: Budget Impact Analysis [online]. (2016). York; York Health Economics Consortium; 2016. https://yhec.co.uk/glossary/budget-impact-analysis/