Budget Impact Analysis (BIA)

Budget impact analysis estimates the financial consequences (net costs or savings) of implementing a new health technology in a specific healthcare system or population over a short time horizon (typically 1–5 years). Distinct from cost-effectiveness analysis (which compares health outcomes per dollar), BIA answers a budgetary question: 'If we adopt this new drug/device, how much will it cost our health system next year?' Widely used by hospital procurement committees, insurance formularies, and government health budgets to assess financial feasibility and reimbursement decision.