Budget Impact Analysis—Principles of Good Practice
This guideline provides clear, practical advice on how to plan, carry out, and report a budget impact analysis for healthcare interventions, helping decision makers understand the financial consequences of adopting a new treatment or technology.
At a glance
Use when
Evaluating the financial impact of introducing a new health technology within a specific healthcare setting or payer context
Avoid when
Assessing long-term health outcomes or cost-effectiveness; use cost-utility analysis instead
Inputs
Healthcare cost data, intervention uptake rates, population size, treatment costs, market share projections
Outputs
Projected budget impact over a specified time horizon (e.g., annual costs), sensitivity analyses, scenario analyses
How it works
Developed by the ISPOR Budget Impact Analysis Good Practice II Task Force, this guideline outlines methodological standards and best practices for structuring budget impact models, defining populations, selecting comparators, incorporating market dynamics, and transparently reporting results to support healthcare policy and reimbursement decisions.
- HTA domains
- Costs & Economic Evaluation
- Assumptions
- Stable healthcare prices over time, predictable market uptake, availability of reliable epidemiological and utilization data
- Strengths
- Standardizes methodology, improves transparency and credibility of analyses, supports consistent decision making across jurisdictions
- Limitations
- Does not assess cost-effectiveness or clinical outcomes directly, relies on assumptions about market dynamics and adoption rates
- Also known as
- ISPOR Budget Impact Analysis Guideline, BIA Good Practice Guideline
Questions this answers
- › What is the expected change in a healthcare budget due to adopting a new intervention?
- › How should the target population be estimated for budget impact?
- › What comparators should be used in a budget impact model?
- › How should market share and uptake be projected?
- › What time horizon is appropriate for budget impact analysis?
- › How should results be presented and reported transparently?
References & sources
Related methods
Similar by meaning
Beta record. Based on the original catalogue summary; primary-source enrichment pending.