Evaluating the financial impact of modeling and simulation in healthcare: Proposed framework with a case study

Abstract

Modeling and simulation have been widely used in health economics and health technology assessment for estimating long-term costs and benefits of health interventions. However, the implementation of simulation in the organizational planning of healthcare delivery is still limited and has not yet received the same level of engagement as it has in other industries. The purpose of this paper is to propose an analytic framework to quantify the value of modeling and simulation, so that the benefits can be evaluated more objectively by the healthcare stakeholders and can be compared across a broad range of health innovations. The application of the framework is illustrated in a case study of acute care for Ischemic stroke. Although the value of modeling and simulation can be measured in various forms, depending on the perspectives of stakeholders, this paper initially focuses on the financial value and takes the perspective of administrators who need to plan and manage health-care budgets.