ISPOR Budget Impact Analysis Principles (2007)
This guideline helps decision-makers understand how a new health technology will affect a healthcare budget over a short to medium term. It provides clear steps for estimating the financial impact on insurers, hospitals, or national health systems.
At a glance
Use when
Assessing financial consequences of adopting a new health technology from a payer or healthcare system perspective over a 1–5 year horizon.
Avoid when
Long-term cost-effectiveness evaluation, clinical efficacy assessment, or when detailed economic modeling beyond budgetary impact is required.
Inputs
Healthcare cost data, market share projections, patient population size, current and new treatment patterns, time horizon, and payer perspective.
Outputs
Projected budget impact over time (e.g., annual costs), including total costs with and without the new technology, and sensitivity analysis results.
How it works
Developed by the ISPOR Task Force on Good Research Practices, this guideline outlines methodological standards for conducting budget impact analyses (BIA) in health technology assessment. It covers key elements including perspective, time horizon, population size, market share, cost inputs, and sensitivity analysis to ensure transparent, credible, and reproducible financial impact assessments.
- HTA domains
- Costs & Economic Evaluation, Organisational aspects
- Assumptions
- Stable healthcare budgets, predictable market uptake, availability of reliable cost and utilization data, and consistent treatment patterns over the time horizon.
- Strengths
- Provides standardized, transparent framework for financial impact assessment; widely accepted by payers and HTA agencies; supports decision-making in resource-constrained settings.
- Limitations
- Does not assess cost-effectiveness or clinical outcomes; limited generalizability across health systems with different financing structures; relies on often uncertain market share estimates.
- Also known as
- ISPOR BIA Principles 2007, Good Research Practices for Budget Impact Analysis
Questions this answers
- › What is the expected change in healthcare budget due to adopting a new technology?
- › How will market uptake of a new intervention affect costs over time?
- › What are the key cost components to include in a budget impact analysis?
- › How should the analysis account for patient population size and market share?
- › What sensitivity analyses are recommended for budget impact models?
- › From whose perspective should the budget impact be assessed?
References & sources
Related methods
Similar by meaning
- National Guidelines for the Budget Impact Analysis of Health Technologies in Ireland (HIQA)
- HTA306 Local Budget Impact Analysis Tool
- Algorithm for estimating the fiscal impact of new health technologies
- Affordability Decision Rules Framework (budget-impact threshold categorisation)
- ISPOR Value of Information Analysis (Report 1)
Beta record. Based on the original catalogue summary; primary-source enrichment pending.