Targeted Literature Review of Methodological Papers
Twenty-two methodological papers were identified through the targeted literature review (see the ESM for the full list). The papers discussed the challenges in the modelling and/or evaluation of interventions in a range of PM-related fields, such as genomic technologies , advanced therapeutic medicinal products  and gene therapies . Several papers stated that the evaluation of PM is possible within existing HTA frameworks [15,16,17,18], though these are potentially not optimal . One paper argued that changes to existing HTA methods and processes will likely be necessary as the field of PM develops , another proposed methodological adjustment . The interview template that was developed based on the challenges reported in the methodological papers can be found in the ESM.
Several experts voiced similar opinions. Among these were the opinions that PM should be subject to the same methodological framework as other interventions to ensure consistency, and that additional value elements should generally not be included in economic evaluations until more research has been conducted and the consequences of including them are better understood. Many experts stated that a high degree of uncertainty is a key issue in PM. Uncertainty regarding treatment effectiveness (due to small study sample sizes) was considered especially prominent, as well as uncertainty whether the often-complex clinical pathways in PM are accurately reflected in economic models. Opinions differed regarding the desirability and necessity of using observational data to estimate treatment effectiveness. While some experts reasoned that economic evaluations based on observational data are unavoidable and/or acceptable, many experts argued that observational data are generally insufficient to inform pricing and reimbursement decisions and trial data should be demanded from manufacturers. Summarised responses, organised by topic, can be found in the ESM.
Systematic Literature Review of Economic Evaluations
The systematic literature review identified 7787 studies through database searching and seven additional studies by searching the reimbursement dossiers sections of the websites of the National Institute for Health and Care Excellence and Institute for Clinical and Economic Review. A total of 4774 individual studies remained after de-duplication , of which 195 were included after full-text screening (Fig. 1). The annual number of published economic evaluations of PM gradually increased over the search period, from ten studies in 2009 to 30 studies in 2018. More than half of the included studies (56%, n = 109) did not address any of the identified modelling challenges, while 33% (n = 64) of studies incorporated one or two aspects, and 11% (n = 22) incorporated three or more aspects. See the ESM for a list of identified studies, including an overview of the aspects incorporated in each study.
As shown in Table 1, the most addressed aspects were patients’ treatment compliance (19%, n = 38) and uptake of testing (11%, n = 22), outcomes for relatives of index patients (14%, n = 27), and the conditionality of test sequences and results (9%, n = 18). The studies incorporating patient compliance and outcomes for relatives of index patients mostly concerned genetic testing for disease risk factors and subsequent preventive treatment. Uptake and compliance were generally incorporated as the proportions of patients undergoing testing and adhering to treatment. Outcomes for relatives of index patients were mostly combined with outcomes for index patients into single incremental cost and QALY figures, but sometimes reported separately. Studies incorporating conditionality of test sequences and results used a variety of assumptions, including varying sensitivity and specificity of tests across age groups, varying predictive values across ethnic groups, and conditional probabilities for test results (i.e. the probability of a positive/negative test result was dependent on whether a previous test had been positive/negative).
Studies incorporating additional value elements (6%, n = 12) mostly considered the psychological impact individuals experience when finding out about increased cancer risk through a genetic test (e.g. reduced uncertainty and/or increased anxiety), though two studies focused on psychological effects related to preventive surgery that may be performed based on the results of such a genetic test (e.g. reduced anxiety or worsened body image). These psychological effects were incorporated by applying a utility increase or decrease. Studies that applied methods to account for potential bias in the extrapolation of outcomes for interventions with a proportion of long-term survivors (6%, n = 11) were mostly economic evaluations of chimeric antigen receptor (CAR) T-cell therapies. The methods included mixture cure models  and the use of hazard ratios to adjust general population mortality for long-term survivors of the condition in question.
Clinician compliance to protocols and guidelines (n = 10) and waiting times for patients (n= 10) were incorporated in 5% of studies. Relevant uncertainty analysis (4%, n = 7) evaluated, for example, the uncertainty around future cost reductions of genetic testing and the possible consequences of inconclusive genetic test results. The conditions of a managed entry agreement were incorporated in 4% (n = 8) of the studies, and methods to adjust for potential bias in non-RCT data in 3% (n = 5) of the studies. One identified method to adjust for potential bias in non-RCT data was to exclude patients with certain characteristics from the comparator cohort to increase comparability between the comparator and intervention cohorts. Another method consisted of the estimation of survival curves per treatment given and the subsequent weighting of the survival curves based on the expected distribution of treatments in the target population. In 2% (n = 3) of studies, lowered discount rates were applied for both costs and benefits. These studies evaluated gene therapies and cited the National Institute for Health and Care Excellence Methods Guide stating that a discount rate of 1.5% (instead of 3.5%) may be considered when a treatment restores individuals experiencing conditions with high mortality and/or morbidity to sustained (near-)full health . No studies parameterised expert judgement into a probability distribution.
The main outcome of this study is the following set of recommendations, informed by the results presented in the previous three sections. The numbered recommendations are introduced by an explanation. See the ESM to view the list of recommendations.
Perspective and Discounting
Some have argued that countries’ standard HTA approaches may not always capture the full value of PM [20, 24, 25]. For example, for evaluating gene therapies that cure children from conditions with high mortality and morbidity, a societal perspective might be more appropriate than a payer perspective. That is, in addition to measuring patients’ QALY gains, a societal perspective could capture the lifetime reduction in the use of informal care that might result from a child receiving a cure, as well as the potentially increased quality of life of carers.
Similarly, some have suggested a lower discount rate for health outcomes in PM with high upfront costs and long-term benefits, such as curative gene therapies and large-scale genetic screening programmes, to place a higher value on future benefits . (A similar effect can be achieved with hyperbolic discounting, in which the discount rate is gradually reduced over time .)
However, allowing the assumptions regarding perspective and discounting to be different for (some) PM would hamper comparability of cost-effectiveness results across interventions and implicitly favour PM over other interventions, especially given the fact that many non-PM interventions also have wider societal and/or long-term benefits.
1. For economic evaluations of PM, use the standard perspective as recommended by national HTA guidelines in the base case.
2. For economic evaluations of PM, use the standard discount rates as recommended by national HTA guidelines in the base case.
Given that stratification is a key tenet in PM, testing plays an important role in the clinical pathway. A number of topics to consider when modelling tests are discussed below .
A single patient may be subject to a range of tests. There may be various options for combining the different tests. The tests may be performed in parallel or sequentially; when they are performed in sequence, choices may have to be made regarding the order in which the tests are performed. The diagnostic strategies chosen may vary across subgroups of the patient population. Additionally, some tests can be applied at different points in the treatment pathway (e.g. genome sequencing). As a result of these factors, modellers may be faced with many possible pathways. When prioritising which options to include in the model, a key consideration should be the extent to which they are relevant given the decision-making context.
3. Identify all relevant test-treatment pathways and justify why the pathways included in the model were selected.
When a test is used to stratify patients into subgroups that are eligible and non-eligible for a specific treatment, the consequences of using the test may affect the cost effectiveness of the test-treatment combination and should be explicitly considered. First, the costs of testing should be included in the economic evaluation of the treatment. When a new treatment requires the introduction of a new test (or the provision of an existing test to a wider target population), allocating 100% of the additional testing costs to the treatment under evaluation may be appropriate. This might seem unfair to “first movers”, i.e. the first pharmaceutical or medical devices companies that require a specific test to be able to identify the right patients for their products, while the same test may later be used for other medical products. However, it is an accurate reflection of the decision problem at hand: the new treatment cannot be implemented in clinical practice without also implementing said test and thus their combined cost effectiveness should be assessed. When the stratification for the new treatment can be done with a test that is already part of current practice, none or only a proportion of the testing costs may be allocated to the new treatment. The specific assumptions made regarding cost allocation may vary according to the budgeting and/or reimbursement arrangements in the decision-making context at hand. Note that total testing cost for all tested patients should be incorporated in the model, as opposed to the testing cost only for patients with a positive test result.
Furthermore, adverse events due to the testing procedure may reduce quality of life and increase mortality rates (e.g. a collapsed lung due to a lung biopsy). Additionally, the test results may stimulate further testing and treatment (e.g. because of secondary findings), affecting final health outcomes and costs. Additionally, there will be false-positive and false-negative patients among those tested, who may be facing poorer health outcomes, potentially leading to additional costs.
4. When a treatment requires the use of a test to stratify patients, include in the model the (downstream) costs and health outcomes of testing for both individuals who test (false-)positive and individuals who test (false-)negative.
The rates of false-positives and false-negatives are largely determined by the diagnostic accuracy of the testing technology used. The diagnostic accuracy of the technology is likely to vary according to the (subgroups of) the patient population in which the technology is applied and may change over time.
5. Ensure that the data used to estimate the diagnostic accuracy of a testing technology are appropriate to the patient population in the model.
Tests may have a continuous outcome, thus cut-off values must be set to determine the result (e.g. low, medium or high risk; positive or negative). Different cut-off values may be in use for the same test. For example, in the USA, pembrolizumab is indicated for patients with non-small cell lung cancer with high programmed death-ligand 1 (PD-L1) expression, which was first defined as PD-L1 expression in > 50% of tumour cells but later as PD-L1 expression in > 1% of tumour cells .
6. When different cut-off values are in use to determine test results, clearly define the cut-off value assumed in the base case. Investigate the effect of alternative cut-off values on cost-effectiveness results using a sensitivity analysis.
When various tests are modelled in sequence, their results may be correlated. See Box 1, for an example of the use of conditional probabilities to model test results.
7. When multiple tests are modelled in sequence, consider the interdependence between test results.
Patients presenting with symptoms generally do not receive treatment instantaneously. They may be faced with periods of waiting between presenting with symptoms and the decision to get tested, between the decision to get tested and testing, between testing and getting results, and between test results and the start of treatment. These waiting periods may impact outcomes, especially in conditions with high short-term morbidity/mortality (see Box 2 for an example).
8. If there is a notable risk of increased morbidity or mortality as a result of waiting periods, incorporate in the model the costs and health outcomes due to the waiting periods.
While some testing technologies are produced by a single provider and standardised, other tests are performed using local laboratory resources. There may be variation in testing costs between commercially developed test kits and local laboratory tests, as well as across laboratories.
9. Confirm that the assumed testing costs are accurate in the setting of interest and consider possible variation in costs across laboratories.
When an inheritable pathogenic mutation is identified in a patient, relatives are also at risk and may be offered genetic counselling and testing (e.g. in familial hypercholesterolaemia, BRCA-positive breast cancer). Focussing the economic evaluation of a test-treatment combination for inheritable mutations only on the index patients may offer an incomplete reflection of the clinical reality.
10. If relatives of index patients become eligible for genetic testing when the index patients test positive for a specific genetic marker, include the costs and health outcomes of testing relatives in the economic evaluation of the index patients.
More stratification of patients leads to increasingly small patient (sub)groups, complicating the generation of (sufficiently) statistically powered data on treatment effectiveness through traditional randomised controlled trials (RCTs). Several alternative trial designs have been developed, including basket trials [31, 32], umbrella trials , n-of-1 trials  and adaptive trials . While some of these alternative designs still allow for controlled studies, many are single-arm designs.
Doubts have been raised whether foregoing an RCT was justified in all of the non-RCT dossiers that have so far been submitted to regulators such as the European Medicines Agency and the US Food and Drug Administration . Nonetheless, there appears to be increasing acceptance of non-RCT evidence among regulatory agencies .
The lack of RCT evidence poses challenges to health economic modelling as it complicates evidence synthesis (e.g. incomplete networks in a network meta-analysis) and increases the uncertainty around cost-effectiveness results. “Conditional reimbursement” or “coverage with evidence development” programmes, in which additional data are collected after market approval, have raised concerns. First, it has been questioned whether they are able to provide unbiased estimates of relative effectiveness when relying on observational data . Concerns also exist about the feasibility of withdrawing medicines that were granted reimbursement once further evidence does not demonstrate their (cost-)effectiveness [38, 39].
11. Where possible, use effectiveness data from trials with two (or more) alternative treatment strategies.
In tandem with the increasing acceptance of non-RCT evidence, there has been a rise in the use of evidence from early trials . However, the relationship between final outcomes and the surrogate outcome measures often used in early trials is not always well established. For example, out of 93 cancer drug indications for which accelerated approval was granted by the US Food and Drug Administration based on surrogate outcomes (such as response rate or progression-free survival), confirmatory trials reported improved overall survival for only 19 (20%) .
12. When surrogate outcomes are used to estimate final outcomes, specify which data sources were used to estimate the relationship between surrogate and final outcomes and justify any assumptions made about the relationship.
When only data from single-arm studies are available, external data could be used to construct a control arm. However, treatment effectiveness may improve over time, owing to treatment-related factors such as dosing optimisation, improvements in the standard of care or external factors such as improvements in general population health. Historical data may, therefore, underestimate effectiveness in the control group, leading to the overestimation of the new treatment’s effectiveness.
13. When effectiveness of the comparator is estimated using external data, account for a possible time trend in effectiveness.
Increasingly many treatments that target specific genetic markers are coming onto the market. If the genetic marker affects disease prognosis, combining data sources with a different prevalence of the genetic marker may be inappropriate for estimating comparative effectiveness. Nonetheless, the effectiveness estimate can potentially be adjusted when the prognostic value of the marker and the prevalence of the genetic marker across the different data sources are known.
For example, two TRK inhibitors (larotrectinib and entrectinib) have recently come onto the market for tumours with NTRK gene fusions. The effectiveness of both treatments was assessed using single-arm trials, meaning that external data are necessary to be able to construct a comparator arm reflecting the standard of care. However, while the trial population for the TRK inhibitors consisted of only NTRK-positive patients, the available data on comparator effectiveness stem from trials in which most patients were NTRK negative, owing to the low prevalence of NTRK fusions in many types of cancer. Preliminary evidence suggests that NTRK-positive patients have a worse prognosis . The treatment effectiveness estimated on populations with a large share of NTRK-negative patients may therefore provide a biased estimate of the treatment effectiveness for NTRK-positive patients and may have to be adjusted.
14. When effectiveness of the comparator for patients with a specific genetic marker is estimated using external data, account for the prognostic value of the genetic marker and differences in its prevalence across the different data sources.
When new gene tests are developed to allocate patients to existing treatments, it is unlikely new RCTs will be performed for the existing treatments in each of the subgroups introduced by the new test. Instead, data on treatment effectiveness in the subgroups may come from genotype-phenotype studies, in which associations between genetic markers and clinical outcomes are investigated. Estimating a causal relationship between genotype and phenotype tends to be highly complicated, owing to, among other things, the potential for gene–gene and gene–environment interactions, heterogeneity in genetic markers (e.g. hundreds of different BRCA mutations have been found in patients with breast cancer ) and heterogeneity in clinical symptoms . Additionally, it may be difficult to identify appropriate controls, to link genetic data to data on clinical outcomes  and to get a large enough sample size to meet statistical significance requirements. As a result, details about the relationship between a genetic marker and clinical outcomes are often uncertain or unknown. For example, while it has been shown that patients with acute coronary syndrome who carry a loss-of-function polymorphism of cytochrome P450 2C19 (CYP2C19) experience more thrombotic events when treated with clopidogrel, uncertainty remains regarding the degree of association between carrier status and thrombotic events . Similarly, the relationship between the level of HER2 expression in patients with breast cancer and the extent to which progression-free survival is reduced is not fully known .
15. Specify which data sources were used to estimate the association between the genetic marker(s) of interest and clinical outcomes and justify any assumptions made about the association.
So far, innovations in PM have mostly been in disease areas with high mortality, such as oncology and rare severe genetic disorders. An accurate estimation of the effect that these interventions have on patient mortality is key to assessing their cost effectiveness. Trials generally provide only short-term data, bringing the need for modelling to estimate survival beyond the trial period. While long-term survival can sometimes be estimated using the surrogate outcomes measured in the trial (see recommendation 12), it is more common to extrapolate from the short-term mortality captured in the trial. The choice of survival model is often informed by assessing the statistical fit to the data. However, models with a good fit to short-term trial data do not always provide plausible predictions regarding long-term outcomes . Expert judgement may be used to evaluate the plausibility of the estimated survival.
16. When extrapolating survival data beyond the study period, use expert opinion alongside statistical fit to choose the survival model.
In several PM interventions, patients might be considered “cured” when they experience long-term survival. This may apply to, for instance, oncology patients experiencing sustained complete remission after receiving targeted therapy, or to patients with early-onset diseases with high mortality who respond to a gene therapy. However, even if patients experience long-term survival, they may be faced with poorer long-term health outcomes than the general population. For example, Janssen-Heijnen et al. showed that for several cancer types (stomach cancer, non-small cell lung cancer, stage II or III breast cancer, prostate cancer, Hodgkin lymphoma), patients who had been “cured” and survived between 10 and 20 years after diagnosis still had poorer survival than the general population . They hypothesised that this could be due to late recurrences, secondary tumours or comorbidities associated with cancer risk factors . Assuming (age- and sex-specific) general population mortality for “cured” patients may therefore be inappropriate (see Box 3 for an example).
17. When extrapolating survival data beyond the study period, account for any excess mortality and morbidity among long-term survivors.
Additional Elements of Value
It has been argued that the QALY insufficiently captures the full value interventions may have. The ISPOR Value Assessment Framework Special Task Force identified a list of additional value elements to be included in a cost-effectiveness analysis, including scientific spill-overs, equity, real option value, value of hope, severity of disease, insurance value, fear of contagion and reduction in uncertainty . A related concept that has been suggested is “personal utility”, which is generally used either to describe the value of knowledge (e.g. knowledge of a test outcome) or as an umbrella term for the non-health outcomes that individuals might value [51, 52]. Patients may indeed value outcomes of healthcare beyond increased health. Diagnostic information, for example, may allow patients to make better life decisions or cause psychological effects such as alleviated (or increased) anxiety . However, the suggested additional value elements raise several concerns.
First, it remains unclear how to define, measure and value many of the identified elements, partly owing to their conceptual ambiguity. There appears to be a risk of double counting, both within the set of elements (e.g. severity of disease can be argued to be part of equity; insurance value is likely strongly correlated with severity of disease, given that the value of being insured against the consequences of falling ill is higher when the diseases covered are more severe) and between the elements and the QALY (some of the “additional” elements may already be captured in preference-based quality-of-life assessments, such as the reduction in uncertainty).
Additionally, there appears to be a focus on positive value elements, while negative value elements may be equally relevant. For instance, the value of hope that patients might experience prior to treatment (e.g. the hope that they are among the long-term responders to treatment) may be (partly) offset by the disutility due to dashed hope once treatment outcomes are known.
It is important to be aware that including additional value elements may alter decision making, at the expense of length and quality of life. For example, once additional value elements are included, intervention A with high health benefits might be deemed less cost effective than intervention B with medium health benefits but many additional elements of value. When choosing to adopt intervention B instead of intervention A, we are implicitly trading off length and quality of life against other value elements (see Table 2 for a stylised example).
Individuals may indeed be willing to trade off certain elements of value against length and quality of their own life , conveying consumer value. However, this does not necessarily mean that people are willing to make such trade-offs between, for example, hope and health in others, casting doubt on whether such value elements should be prioritised at the national level. Indeed, it may be debated whether healthcare payers such as national governments should pay for all elements that bring value to individual patients, especially given that there likely is significant variation across patients in their valuations of specific elements, as well as within patients depending on the time they are asked. For example, risk-averse patients might not experience any value of hope and risk-loving patients may only experience a value of hope for a short time, after which dashed hope might be experienced.
If additional value elements were to be included in economic evaluations, this should be done for all interventions, not just PM, to ensure consistency and comparability across studies. Indeed, the suggested value elements may be relevant outside of PM. For example, while a patient with a family history of breast cancer likely experiences relief (i.e. gains personal utility) when they find out they are BRCA negative (PM), personal utility may equally be gained by a couple wanting to get pregnant when they find out they have no fertility issues (non-PM).
Note that the threshold value against which the cost effectiveness of the intervention is judged may have to be adjusted to account for the additional value elements. For example, if additional value elements are included in a sensitivity analysis, the resulting cost-effectiveness outcomes may have to be judged against a different threshold than the outcomes in the base-case analysis. The rationale for this depends on whether the threshold is viewed as a supply-side estimate (i.e. the opportunity cost of healthcare spending, or the marginal productivity of the healthcare system) or a demand-side estimate (i.e. the societal willingness to pay for improvements in health) . In the former, the threshold changes when additional value elements are included because the opportunity cost of spending now includes not only health forgone but other benefits forgone as well. In the latter, the threshold changes because the societal willingness to pay for only health outcomes may be different from the willingness to pay for health and non-health outcomes combined.
18. Only include elements of value recommended by national HTA guidelines in the base case. If additional elements of value are included in a sensitivity analysis, ensure possible elements of negative value are equally considered and included for both the intervention and the comparator.
While health economic models are used to simulate the clinical reality, clinical reality is not always optimal. Depending on the decision context, modellers may choose to model a healthcare intervention at its optimal implementation level or at a level of implementation that is closer to reality (or both). It is important to be transparent about the extent to which the model reflects optimal implementation.
In PM, a significant cause of suboptimal implementation may be imperfect compliance owing to the perceptions and preferences of patients and clinicians regarding PM. For example, unwillingness to find out about risk-increasing gene mutations may hamper patients’ uptake of genetic testing. Similarly, limited understanding of risk/probabilities may lessen patients’ compliance to therapeutic plans based on genetic testing. In addition, clinicians may not be fully compliant to protocols and guidelines because of a limited knowledge of genetics, or they may already initiate treatment in rapidly deteriorating patients if the waiting time for test results is too long.
Compliance is likely affected by the perceived probability of disease (this applies to testing only), the severity of disease and/or the type of treatment (e.g. preventive or curative). For example, in the study described in Box 4, the uptake of genetic testing for the risk of breast and ovarian cancer is markedly lower for people aged under 30 years than for people aged 30 years and above. Similarly, compliance to genetic testing for cardiovascular disease risk and subsequent preventive measures may be lower than compliance to genetic testing of tumours and subsequent cancer treatment.
When incorporating compliance, note that an adjustment of the effectiveness estimate might not be necessary for pragmatic trials, where data reflect real-world compliance. Furthermore, note that reduced compliance does not automatically mean that intervention costs are lower (e.g. medicines may have been dispensed but not taken). Finally, patient compliance may vary considerably between for example socioeconomic, geographic and age groups. Clinician compliance might also vary according to the societal group their patients belong to.
19. Include parameters reflecting patient and clinician compliance in economic evaluations for decision makers who require cost-effectiveness results under realistic circumstances.
20. When including patient and clinician compliance in economic evaluations, confirm that the assumed compliance is accurate in the setting of interest and consider possible variation in compliance across societal groups.
To enable optimal reimbursement decisions, it is important to present uncertainty in the cost-effectiveness estimates. Personalised medicine tends to be rife with parameter and structural uncertainty. While PM is often associated with the tailoring of treatments to individual patients, in practice, PM generally divides patients into groups, albeit small groups, and provides the same treatment within each group. The small sample sizes in RCTs and the use of observational data tend to increase the uncertainty of the treatment effect. Other input parameters in economic models of PM may also be uncertain, such as the prevalence of the genetic marker in the target population, testing costs, and the sensitivity and specificity of the testing technology used.
Given limited data availability, expert judgement may be used to provide estimated values for the input parameters. However, expert judgement, too, carries uncertainty, which should be reflected. Several methods have been developed to synthesise the estimated values by multiple experts for a single parameter into a probability distribution that can be included in a sensitivity analysis [57,58,59,60,61].
21. When expert judgement is used to estimate values for the input parameters in the model, synthesise the elicited values into a probability distribution to be included in a sensitivity analysis.
Considerable structural uncertainty arises in PM owing to, for example, the myriad assumptions and decisions that must be made about how to reflect complex testing and treatment pathways, about the expected duration of treatment effect or regarding the methods used to obtain effectiveness estimates when RCT data are not available. Structural uncertainty may have a significant impact on cost-effectiveness results. A failure to assess structural uncertainty provides an incomplete depiction of the decision problem to decision makers. Structural uncertainty may be assessed through a sensitivity analysis in which the effect of plausible alternative assumptions and decisions is investigated. However, performing a sensitivity analysis does not allow for the assessment of the decision uncertainty and the value of information . Alternative options are (i) model averaging, which can provide an assessment of decision uncertainty and (ii) the parameterisation of structural uncertainties, which allows for the assessment of both decision uncertainty and the value of information .
22. Identify uncertainties in structural assumptions and decisions and investigate their impact on cost-effectiveness results through a sensitivity analysis. Parameterise structural aspects where possible.
Managed Entry Agreements
When uncertainty regarding an intervention’s comparative effectiveness, cost effectiveness and/or budget impact precludes a reimbursement decision, as may commonly be the case for PM, managed entry agreements (MEAs) between a healthcare payer and a manufacturer can be used to offer patients access to the intervention. The two main types of MEA are financial (e.g. discounts, price-volume agreements) and outcomes based (e.g. payment based on individual patient response) and both can be constructed with different levels of risk sharing . The conditions of a MEA can be incorporated into health economic models, as some of the costs may be shifted to a different point in time and should be discounted appropriately. Indeed, models may be used to optimise the conditions of a MEA, such as the period a pharmaceutical and/or diagnostic test is provided at no cost, the price cap or the time point at which treatment effectiveness for individual patients is assessed (see Box 5 for an example). The optimisation criterion could be a combination of discounted cash flow (most relevant from the manufacturer’s perspective) and incremental net monetary benefit and budget constraints (most relevant for payers).
23. If a managed entry agreement is being considered for an intervention, include its conditions in the model evaluating the intervention.