The Computing Framework and Calculations

Abstract

The process of developing the computing framework for a budget-impact analysis includes making decisions about the computer model structure while accounting for available input data, necessary assumptions, and other model design requirements. The computing framework can be developed once the analytic framework for the budget-impact analysis has been determined, a detailed flow diagram has been created, and the methods for estimating input parameter values including population size, treatment mix, treatment-related costs, and condition-related costs have been determined. In general, a static cost-calculator model structure should be used whenever such a model can credibly capture the impact of the new drug on the decision maker’s budget. However, there are circumstances when accurately estimating budget impact requires the use of more complex calculations, such as the use of formal decision-analytic modeling techniques. These circumstances generally occur when a dynamic accounting of the treated population is necessary.