Industry Overview
The recent financial pressure on the healthcare industry has led to a major concern for the stakeholders; leaving pharmaceutical, medical device, and diagnostic firms in a dilemma to seek ways to present the real value of their products. To better understand the value of their products, organizations need to carry out a robust budget impact analysis. A budget impact analysis allows organizations to determine the financial impact of new products on the budgets of healthcare-decision makers. It also allows organizations to manipulate the market share of treatments for certain conditions. Consequently, budget impact analysis finds application in assessing a product’s affordability and for the reallocation of resources, understanding of trade-offs for new products, as well as budget planning and forecasting. In the pharmaceutical sector, budget impact analysis helps organizations build arguments for the adoption of the new product.
Quantzig’s budget impact analysis solution helps the client understand the use of the application, which is relevant to a particular payer’s healthcare environment. Also, Quantzig provides interactive dashboards to provide real-time statistics regarding the healthcare environment such as health systems population and hospital resources.
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The Business Challenge
A leading pharma manufacturer in Europe wanted to assess the budget impact of vaccinations using different vaccines. Like all other companies in the pharma landscape, the client wanted to evaluate the best vaccination strategy that is available in the manufacturing landscape. Also, the client wanted to quantify the health and budget impact of vaccination strategies for pneumonia in adults. Since the prevalence of vaccination is increasing in the market, the client wanted to carry out a deep-dive assessment to analyze the impact of two types of vaccines. This identification process will help draw a conclusion in terms of better vaccines and the most cost-effective method of treatment.
The primary objective of the study was to understand the performance of vaccines on individuals as compared to ideal settings using real-world data. Consequently, the client also wanted to analyze the health outcomes under different vaccination scenarios and the associated budget impact.
Our Approach
With years of expertise in offering the best-in-class analytical services, Quantzig’s team of experts carried out an in-depth strategy for vaccinations independently. The experts were very certain of not performing back calculations to curtail the chances of underestimation in the number of cases with illness.
To derive better clarity, the budget’s impact was assessed for each scenario using clinical, demographic, and cost parameters to identify the most cost-effective treatment method. The key highlight of Quantzig’s solution was the formulating a population-based “Markov Model” to predict if the adults who were at-risk should be vaccinated or remain unvaccinated.
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Budget Impact Modeling Solution Benefits
- Vaccination of separate set of individuals with Type 1 and Type 2 showed a decrease in cases of pneumonia
- Vaccination with Type 2 showed less favorable as compared to vaccination with Type 1 based on demographic and clinical characteristics
- The vaccination with Type 2 is associated with higher costs as compared to the counterparts
- A detailed sensitivity analysis was carried out for all scenarios with variations in the price of vaccines and other risk factors
- The budget impact analysis also proved that the use of Type 1 and Type 2 vaccinations in combination was better than Type 2 alone, and had a reduced budget impact
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Budget Impact Modeling Predictive Insights
- Created an interactive dashboard to visualize patient engagement rates
- The descriptive dashboard also covered different patient profiles based on demography, vaccine administered and the costs incurred
- Visualized different scenarios and costs associated with the same for budget impact analysis and ease of comparison
- Improved budget impact by 50%
- Assessed health outcomes based on scenario analysis
- Carried out a vaccination strategy based on the analysis of the population group