IDEAS home Printed from https://ideas.repec.org/p/ohe/conres/002533.html

The impact of inflation on incremental costs in HTA

Author

Listed:
  • Sam Large
  • Joe Trim
  • Ella Barker
  • Louis Zanden
  • Phill O’Neill
  • Chris Sampson

Abstract

Inflation reshapes the economic landscape in which new treatments are evaluated. Yet cost-effectiveness thresholds tend to remain fixed over time. This report examines how inflation in NHS healthcare costs associated with resource use affects the estimation of incremental costs in health technology assessment (HTA), and what this means for the cost‑effectiveness and commercial viability of new technologies when decision thresholds do not adjust accordingly. Throughout this paper, we distinguish between intervention costs (e.g. the price of treatments) and background NHS costs (i.e. healthcare resource use associated with delivering care related or unrelated to an intervention). Annual publications of NHS unit…

Suggested Citation

  • Sam Large & Joe Trim & Ella Barker & Louis Zanden & Phill O’Neill & Chris Sampson, 2026. "The impact of inflation on incremental costs in HTA," Contract Research 002533, Office of Health Economics.
    • Handle: RePEc:ohe:conres:002533
    as

    Download full text from publisher

    File URL: https://www.ohe.org/publications/the-impact-of-inflation-on-incremental-costs-in-hta/
    Download Restriction: no
    File URL: https://www.ohe.org/wp-content/uploads/2026/05/Large-S.-et-al.-2026-The-impact-of-inflation-on-incremental-costs-in-HTA-1.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Rajiv Mallick & Rashad Carlton, 2025. "A Budget Impact Model of Treatment of Primary Immune Deficiency with Immune Globulin Subcutaneous (Human), 20% (IgPro20) (Hizentra)," PharmacoEconomics - Open, Springer, vol. 9(6), pages 997-1008, November.
    2. Niklaus Meier & Hendrik Fuchs & Katya Galactionova & Cedric Hermans & Mark Pletscher & Matthias Schwenkglenks, 2024. "Cost-Effectiveness Analysis of Etranacogene Dezaparvovec Versus Extended Half-Life Prophylaxis for Moderate-to-Severe Haemophilia B in Germany," PharmacoEconomics - Open, Springer, vol. 8(3), pages 373-387, May.
    3. Diana Beatriz Bayani & Yihao Clement Lin & Chandramouli Nagarajan & Melissa G. Ooi & Allison Ching Yee Tso & John Cairns & Hwee Lin Wee, 2024. "Modeling First-Line Daratumumab Use for Newly Diagnosed, Transplant-Ineligible, Multiple Myeloma: A Cost-Effectiveness and Risk Analysis for Healthcare Payers," PharmacoEconomics - Open, Springer, vol. 8(5), pages 651-664, September.
    4. Culyer, Anthony J., 2016. "Cost-effectiveness thresholds in health care: a bookshelf guide to their meaning and use," Health Economics, Policy and Law, Cambridge University Press, vol. 11(4), pages 415-432, October.
    5. Andrew H. Briggs & François-Xavier Chalet & Jacie Cooper & Peter Graham & Stephen Palmer & Paul Miller & Andrew Walker & Berkeley Greenwood & Charles M. Morin, 2025. "Cost-Effectiveness Analysis of Daridorexant for the Pharmacological Treatment of Chronic Insomnia Disorder in Adults," PharmacoEconomics - Open, Springer, vol. 9(3), pages 379-397, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Javad Moradpour & Aidan Hollis, 2021. "The economic theory of cost‐effectiveness thresholds in health: Domestic and international implications," Health Economics, John Wiley & Sons, Ltd., vol. 30(5), pages 1139-1151, May.
    2. Siverskog, Jonathan & Henriksson, Martin, 2022. "The health cost of reducing hospital bed capacity," Social Science & Medicine, Elsevier, vol. 313(C).
    3. Jyotirmoy Sarker & Jeffrey A. Tice & David M. Rind & Surrey M. Walton, 2025. "Evaluating the Cost-Effectiveness of Etranacogene Dezaparvovec Gene Therapy for Hemophilia B Treatment in the USA," Applied Health Economics and Health Policy, Springer, vol. 23(3), pages 467-478, May.
    4. Jessica Ochalek & Karl Claxton & Paul Revill & Mark Sculpher & Alexandra Rollinger, 2016. "Supporting the development of an essential health package: principles and initial assessment for Malawi," Working Papers 136cherp, Centre for Health Economics, University of York.
    5. Markiewicz Olimpia, 2021. "Value of Life Year and Cost-Effectiveness Thresholds: The Case of Poland," Central European Economic Journal, Sciendo, vol. 8(55), pages 256-268, January.
    6. Sabrina Storgaard Sørensen & Kjeld Møller Pedersen & Ulla Møller Weinreich & Lars Ehlers, 2017. "Economic Evaluation of Community-Based Case Management of Patients Suffering From Chronic Obstructive Pulmonary Disease," Applied Health Economics and Health Policy, Springer, vol. 15(3), pages 413-424, June.
    7. Jessica Ochalek & Miqdad Asaria & Pei Fen Chuar & James Lomas & Sumit Mazumdar & Karl Claxton, 2019. "Assessing health opportunity costs for the Indian health care systems," Working Papers 161cherp, Centre for Health Economics, University of York.
    8. Diaz M. Prameyllawati & Hester F. Lingsma & Marjon H. Cnossen & Renske M. T. Ten Ham, 2026. "A Systematic Review of Modelling Approaches in Economic Evaluations of Treatments for Inherited Bleeding Disorders," Applied Health Economics and Health Policy, Springer, vol. 24(1), pages 111-129, January.
    9. Saranda Bajraktari & Marlene Sandlund & Beatrice Pettersson & Erik Rosendahl & Magnus Zingmark, 2024. "Cost-effectiveness analysis of the digital fall preventive intervention Safe Step among community-dwelling older people aged 70 and older," European Journal of Ageing, Springer, vol. 21(1), pages 1-10, December.
    10. Daniel Howdon & James Lomas, 2017. "Pricing implications of non-marginal budgetary impacts in health technology assessment: a conceptual model," Working Papers 148cherp, Centre for Health Economics, University of York.
    11. James Love-Koh & Susan Griffin & Edward Kataika & Paul Revill & Sibusiso Sibandze & Simon Walker & Jessica Ochalek & Mark Sculpher & Matthias Arnold, 2019. "Economic analysis for health benefits package design," Working Papers 165cherp, Centre for Health Economics, University of York.
    12. Michael Abbott & Mandy Ryan & Rodolfo Hernández & Lynda McKenzie & Sebastian Heidenreich & Lynne Hocking & Caroline Clark & Morad Ansari & David Moore & Anne Lampe & Ruth McGowan & Jonathan Berg & Zos, 2025. "Should Scotland provide genome-wide sequencing for the diagnosis of rare developmental disorders? A cost-effectiveness analysis," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 26(3), pages 503-512, April.
    13. Mattias Neyt, 2018. "Value-Based Pricing: Do Not Throw Away the Baby with the Bath Water," PharmacoEconomics, Springer, vol. 36(1), pages 1-3, January.
    14. Janvier Gasana & Harri Vainio & Joseph Longenecker & Tom Loney & Balázs Ádám & Mustafa Al‐Zoughool, 2021. "Identification of public health priorities, barriers, and solutions for Kuwait using the modified Delphi method for stakeholder consensus," International Journal of Health Planning and Management, Wiley Blackwell, vol. 36(5), pages 1830-1846, September.
    15. Haru Iino & Masayuki Hashiguchi & Satoko Hori, 2022. "Estimating the range of incremental cost-effectiveness thresholds for healthcare based on willingness to pay and GDP per capita: A systematic review," PLOS ONE, Public Library of Science, vol. 17(4), pages 1-17, April.

    More about this item

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ohe:conres:002533. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Publications Manager The email address of this maintainer does not seem to be valid anymore. Please ask Publications Manager to update the entry or send us the correct address (email available below). General contact details of provider: https://edirc.repec.org/data/ohecouk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.