What is a cost-effectiveness model (CEM)

Cost-effectiveness models (CEM) are used for cost-effectiveness analysis, which is conducted to study the cost-effectiveness ratio of certain medical procedures aimed to treat a certain disease, as well as their comparison with alternative protocols for treating the same disease. Such analysis is performed today in the USA and many European countries before launching the production of new drugs and medical equipment. It is also used when doctors and public health authorities decide which treatment protocol is more effective to use.

What is a cost-effectiveness model

The Cost-Effectiveness Model (CEM) is the analytical framework and main digital tool that is used in the cost-effectiveness analysis process. The CEM synthesizes all kinds of information, such as:

• The natural course of the disease;
• Effectiveness and consequences of a particular treatment protocol;
• The quality and life expectancy of the patient after the medical intervention;
• The amount spent on treatment, etc.

The obtained data allows for estimating the costs spent on the treatment and its results. With CEM, several different treatment protocols are evaluated, which in turn makes it possible to determine which of the treatments considered represent the best value for money for the patient. In other words, CEM allows you to compare the cost-benefit ratio of different treatment options.

When you might need CEM

The development of a digital CEM is most often commissioned by drug and medical device manufacturers in order to obtain an estimate of the cost and effectiveness of treatment with a new drug.

• The analysis performed using CEM is used to:
• To generate product value, which is important for launching sales;
• To obtain a Health Technology Assessment (HTA);
• To make decisions of responsible authorities at the local or national level on reimbursement of treatment costs.

The reliability of digital CEM as a tool for informed decision making has long been unquestioned by public health authorities in many countries, including the US, UK, Australia and Sweden.

Benefits of digital CEM

CEMs, created with input from economists, health professionals and digital product creation specialists, allow:

• Obtain a robust and conceptual model that integrates all the data needed for complete analysis;
• Generate clear, easy-to-understand reports for analysis;
• Use digital CEM at various stages of product creation, allowing for changes in product composition and pricing adjustments.

Digital CEMs are simple and straightforward to use. They can be created for use on PCs, iPads or tablets.