New Model Validation Tool to Support Economic Evaluations of Health Technologies

CADTH has developed a comprehensive and accessible tool to support the validation of economic models used in health technology assessments (HTAs).

Economic models are integral components of a HTA that help demonstrate the value of health technologies (e.g., drugs or medical devices). Validating economic models is a key step that can help ensure that modelling results address decision-making needs, measure intended outcomes, and are valid. In the absence of long-term data, findings from an economic model can be crucial in understanding long-term cost and health consequences associated with funding technologies.

To support health economists and other researchers who conduct economic evaluations, we have published a model validation tool and accompanying report describing the development process. The tool is intended to help ensure that economic models are fit for purpose and function properly. The tool includes a series of checklists to validate components of the model, including the conceptualization of the model as it relates to the decision problem, model specification, model behaviour and coding, among others.

During the tool’s development, we gathered information on current model validation practices by completing a review of grey literature, a targeted review of published literature, consultations with health economists, and a survey to reviewers of pharmacoeconomic submissions to CADTH. We also received input and methodological support from experts across Canada, who served as contributors and reviewers.

While this tool is not a requirement for submissions to our Drug Reimbursement Review program, it will help to ensure a more consistent and reproducible approach to model validation for economic evaluations of all health technologies. We will be updating the tool over time to stay in line with best modelling practices.

To learn more about this work and to access the tool, read: The Development of a Model Validation Tool to Assist in the Conduct of Economic Evaluations.