What is economic modeling?
Economic modeling applies structured calculations—such as decision trees, Markov models, or simulation methods—to evaluate the financial and clinical consequences of using a drug or medical intervention. Inputs may include treatment costs, quality-adjusted life years (QALYs), resource use, and disease progression assumptions.
Why is economic modeling important in market access and pricing?
These models are essential tools for health technology assessments (HTAs), reimbursement applications, and pricing negotiations. They help demonstrate the value of a therapy in the context of health system priorities and cost constraints. Well-executed models improve payer confidence and support stronger, evidence-based access decisions.
