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Watershed Planning within a Quantitative Scenario Analysis Framework
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Estimating Downstream Budget Impacts in Implementation Research.

Todd H Wagner1,2, Alex R Dopp3, Heather T Gold4

  • 1Health Economics Resource Center, US Department of Veterans Affairs (VA) Palo Alto Health Care System, Menlo Park, CA, USA.

Medical Decision Making : an International Journal of the Society for Medical Decision Making
|September 21, 2020
PubMed
Summary
This summary is machine-generated.

Budget impact analysis (BIA) helps health care decision makers understand new program costs. Accurately estimating downstream costs requires considering applicability and the decision-maker's time horizon for reliable financial insights.

Keywords:
budget impact analysiscostcost analysisfinancial managementimplementation science

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Area of Science:

  • Health economics
  • Implementation science
  • Health services research

Background:

  • Health care decision makers require budget impact analyses (BIAs) to assess new interventions.
  • BIAs are crucial for understanding the financial implications of implementing evidence-based programs to reduce quality gaps.
  • Accurate cost estimation is essential for the validity of BIAs in health care.

Purpose of the Study:

  • To outline key considerations for measuring downstream health care costs within BIAs.
  • To address overlooked issues in cost estimation for implementation science studies.
  • To guide accurate financial assessments for health care decision making.

Main Methods:

  • Discussion of conceptual issues in measuring downstream health care costs for BIAs.
  • Examination of cost applicability to specific health care systems.
  • Analysis of decision-maker time horizons for cost variation.

Main Results:

  • Two primary issues in cost estimation for BIAs were identified: applicability and time horizon.
  • National or average cost estimates may not be appropriate for specific health care systems.
  • Short-term BIAs should focus on short-run variable costs, excluding fixed costs.

Conclusions:

  • Careful consideration of cost applicability and time horizon is vital for accurate BIAs.
  • Misleading decision makers can occur if these conceptual issues are not addressed.
  • Robust BIAs support informed financial decisions in health care program implementation.