Economic Modelling
Robust economic modelling is often essential for turning clinical evidence into a credible case for reimbursement.
We design, develop and communicate cost-effectiveness and budget impact models that support payer and health technology assessment (HTA) decision-making. Tailored to your asset and available evidence, our models provide robust estimates of clinical and economic value while clearly demonstrating the budget implications of product adoption.
We also develop early cost-effectiveness models for internal use, helping inform R&D priorities, shape evidence generation, and prepare your asset for a successful launch.
Models built around your asset, not a template
We design economic models tailored to your asset’s specific value story and decision problem, adopting robust methods that stand up to scrutiny.
Cost-effectiveness models
We adopt the methodology that best addresses the decision problem, local methodological requirements, and national/international best practice. We can advise on and develop any type of model, from Markov and partitioned survival models to patient-level simulation approaches.
Budget impact models and payer tools
We design budget impact models and payer engagement tools around their intended use, ensuring we reflect the decision context, evidence needs, and requirements of the audience whether that is local or national payers.
Turning technical outputs into a case payers actually engage with
We translate complex outputs into clear, evidence-based communication, speak to our team to learn more.
Develop robust economic models that demonstrate value
Technical depth to ensure the most appropriate methodology and platform
We build economic models using the structure and platform best suited to the decision problem and intended use. Our team develops accessible, user-friendly models in Excel, as well as R. We will work with you to decide the most appropriate platform for your use case.
HTA-ready, from model strategy through to submission
Our team combines extensive experience developing economic models for HTA with insight from colleagues who have previously worked with or within HTA agencies. This means we can provide strategic advice on model structure, assumptions, data inputs and scenario analyses from the outset, helping ensure your model is technically robust, aligned with payer expectations and positioned to support the strongest possible case for a positive recommendation.
Why work with us?
Senior involvement in every project: Each project team has a hands-on, experienced senior health economics lead.
HTA insider expertise
You will have access to economists with first-hand experience of working with or within HTA bodies, with team members who have worked previously on a National Institute for Health and Care Excellence (NICE) Technology Appraisal Committee, the NICE Decision Support Unit, and within External Assessment Groups (EAG).
Drawing on the breadth of our team’s technical experience
When a particularly complex modelling challenge arises, your project team can draw on the technical expertise and experience of our 20+ team of health economists for guidance, while keeping commercially sensitive project information protected.
Client testimonials
Sincere thanks to you all and everyone at Source who helped with this [HTA]. We / NICE, threw some pretty tough deadlines and problems at you and we very much appreciate your flexibility and willing in helping us to meet these. As always, you’ve been a pleasure to work with.
I have worked with Source Health Economics over 3+ years, most recently on a challenging SMC submission, which achieved positive advice. Source Health Economics consistently offer valuable strategic advice as well as high-quality, timely deliverables within well-managed projects. Source Health Economics are set apart from other consultancies by the diverse set of skills of the individuals on the project teams, their highly flexible approach and excellent value. In a nutshell, Source are a pleasure to work with
Let’s build a model that stands up to scrutiny.
Talk to us about de novo model development, adaptation, validation, or strategic cost-effectiveness modelling support.
FAQ — Economic modelling
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How do you determine whether it’s worth building a cost-effectiveness model?
We start by understanding your product, its evidence base, and the access decision it needs to support. A cost-effectiveness model is typically needed when you are seeking access to healthcare systems where payers or HTA bodies require evidence that a product offers good value for money. Cost-effectiveness model development can also be useful earlier in development to explore potential value, identify key evidence gaps, inform pricing strategy, and understand what may be needed to support future reimbursement discussions.
When is the right time to build a cost-effectiveness model?
It has been said that it is always too early to build a model until it’s too late. However, in our experience, it’s rarely too early to start – ‘early’ modelling is often undertaken with a view to assessing the potential for cost-effectiveness, establishing justifiable price potentials, and as a first step towards developing payer-ready economic evidence.
Do you limit your work to specific disease areas or assets?
No, our experience is not limited to particular disease areas or assets; we have extensive experience developing economic models across a wide range of disease areas and treatment modalities.
What's the difference between a Markov model, a partitioned survival model, and a patient level simulation?
These are different structural approaches to modelling disease progression and cost-effectiveness. The right approach depends on many factors, and we are well-placed to advise on the best approach for your intervention and decision problem.
What software do you use to build your economic models?
We can develop models in Microsoft® Excel and R. We will work with you to decide the most appropriate platform for your use case.
What is a budget impact model, and why do payers ask for one separately from a cost-effectiveness model?
A budget impact model estimates the financial consequences of adopting a new treatment typically over a three- to five-year horizon. A cost-effectiveness model, by contrast, asks whether that treatment represents good value for money. Because the two answer different questions, payers often ask for both: a treatment can be demonstrably good value and still be difficult to afford within a fixed short-term budget.
Do you validate economic models built by other vendors?
Yes, we can provide independent, third-party model quality assurance and stress-testing for models built by your in-house team or by another vendor, giving an extra layer of assurance before HTA submission.
Can you adapt an existing global model for a local HTA submission?
Yes, adapting a global cost-effectiveness or budget impact model to a specific market’s payer requirements is a common engagement. We can also help adapt models developed by other vendors or our clients’ in-house teams.