Budget impact model helps medical device company gain trust with hospitals to adopt new breast cancer technology

Our client’s need

A medical device company wanted to better articulate the value proposition of a new technology for hospitals, a new technology that could be a break-through in breast cancer detection and management. Our client’s goal was to better inform and educate their hospital clients regarding the financial impact resulting from their technology.

Baker Tilly solution

Baker Tilly developed a budget impact model (BIM) to assist our client in its discussions with hospitals. BIMs are an interactive way of showing the impact of new technologies on volumes and case-level economics, which help strengthen the value propositions for medical device companies. The BIM incorporated the following aspects:

  • Transparent, realistic assumptions;
  • Real claims data (as opposed to literature based estimates);
  • Medicare and commercial data;
  • Clear standard-of-care comparison;
  • Sensitivity to changes in penetration;
  • Short time horizons; and
  • Cost and reimbursement assumptions at the procedure level.

Incorporating these aspects adds credibility to the model, especially being able to incorporate the hospital’s specific volumes, based on historical data, and allowing for various hospital-specific reimbursement scenarios.


The BIM showed that the technology would provide financial advantages for hospitals, as well as better patient outcomes.  Specifically, the number of repeat lumpectomies and follow-up mastectomies would be reduced, resulting in fewer re-admissions and a better patient experience which helps hospitals align with imminent value-based reimbursement programs.  The client has correlated increased sales and higher usage rates to the introduction and use of the BIM.

For more information on this topic, or to learn how Baker Tilly healthcare specialists can help, contact our team.