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Early Health Economic Model Identified Cost Drivers and Clarified the Product Value Proposition

Health Economics Case study
Executive snapshot
Client:
Small MedTech/healthcare company (cardiovascular)
Geography:
UK (NICE-relevant), with broader European stakeholder needs
Objective:
Build an early cost-effectiveness model to clarify the value proposition and guide future HTA/market access strategy
Method:
10-year Markov model (UK payer perspective)
Timeline:
1.5 months from kick-off
Situation

A small company developing a cardiovascular product had a growing evidence base, including two randomized controlled trials (RCTs), one propensity-score matched cohort study, and several before-and-after studies.

However, the evidence was mixed in a way that created uncertainty for market access planning:

  • The RCTs showed impact on surrogate endpoints only.
  • The matched cohort study demonstrated a statistically significant improvement in a clinically meaningful outcome.

The client wanted to engage with NICE in the UK and begin discussions with hospital and payer stakeholders across Europe. Although a full HTA submission was not immediately planned, the company needed an early view of:

  • Whether the product could plausibly be cost-effective in the UK
  • Which parameters were driving value (and therefore where to focus evidence generation)
  • Whether a future, publishable model could support global market access efforts
What MTRC did

Within 1.5 months, MTRC developed a robust early health economic model to estimate the product’s cost-effectiveness from the UK payer perspective over a 10-year time horizon, using a Markov modelling approach.

To keep the work fast and affordable while still decision-useful, the “early model” was intentionally streamlined compared with a full HTA-grade model:

  • A targeted (rapid) search was used to identify clinical, epidemiological, utility, and cost inputs
  • The model included scenario exploration around alternative effectiveness assumptions
  • Formal, comprehensive sensitivity analysis was limited, though we conducted rapid sensitivity/scenario testing on key drivers

This approach allowed the client to obtain an early directional answer while preserving a clear path to developing a future, defensible model suitable for HTA scrutiny and publication.

Results

Using the initial inputs available at the time, the early model suggested the product was not cost-effective under base-case assumptions.

However, scenario and rapid sensitivity testing indicated the product could become cost-effective under certain conditions, particularly when assessed against NICE’s updated threshold of £35,000 per QALY, with changes in key drivers such as:

  • Cost of regular care
  • Health-related quality of life in the post-treatment state
Impact

The early model provided immediate strategic value:

  • It clarified that, under current assumptions, the product was unlikely to be cost-effective in the UK (and other European markets);
  • It identified the critical cost and utility drivers most likely to shift the conclusion;
  • It gave the client a pragmatic roadmap for evidence generation and modelling upgrades.

Based on these findings, MTRC advised proceeding to a comprehensive model, including:

  • A systematic, defensible literature review of high-impact clinical, utility, and cost inputs
  • A stronger methodological foundation for extrapolating effectiveness beyond study follow-up, including justification of assumptions appropriate for HTA review

If cost-effectiveness is demonstrated in the comprehensive model, the analysis can be prepared for peer-reviewed publication to support market access activities globally.

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