Which analysis assesses the expected budget impact for a payer or system when evaluating a new healthcare intervention?

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Budget impact analysis assesses the expected financial consequences of adopting a new healthcare intervention for a payer or health system. It focuses on affordability over a defined time horizon, modeling how many patients would be eligible and actually use the intervention, the unit price, and any changes in related costs or cost offsets. This approach shows how total expenditures would change in the near term, helping payers plan budgets, decide on coverage, and gauge whether the intervention fits within available resources.

Other analyses serve different purposes: cost-minimization compares costs when outcomes are the same; cost-utility translates costs into health outcomes like QALYs, focusing on value rather than budget; break-even analysis looks for the point where investments are recovered, which is about profitability over time rather than ongoing budget impact.