Oct 9, 2019

Demonstrating Cost Effectiveness Of Digital Therapeutics

Today, we announced the publication of our fifth peer-reviewed [study](https://www.jmir.org/2019/10/e15814) titled *Estimating the impact of novel digital therapeutics in type 2 diabetes and hypertension: Health economic analysis.* Key findings were presented earlier this year at The International Society for Pharmacoeconomics and Outcomes Research (ISPOR) annual conference in New Orleans, LA.

Chronic diseases including diabetes and heart disease affect half of all adults in the US and account for nearly 80 cents of every healthcare dollar spent. Digital therapeutics that deliver behavioral interventions focused on lifestyle demonstrate potential benefits over traditional therapies like medications and surgeries that treat the effects of disease while leaving the causes in place. They can increase patient access because they are inherently scalable, continuously delivered, and have demonstrated both clinical and cost-effectiveness in diabetes and hypertension.

The economic analysis estimated cost savings of $145 per patient per month (PPPM) in diabetes, and $97 PPPM in hypertension, a reduction of 22-29% in total medical costs. These savings are realized by addressing the behaviors and lifestyle factors that are the root causes of disease, reducing the ongoing need for prescription medications. The potential cost savings increases substantially (30-60%) in moderately severe to severe patient populations. The intervention would be cost-effective at total three-year program costs of $6,468 for diabetes and $6,620 for hypertension.


This type of health economic and outcomes research (HEOR) is particularly important to health insurers, employers, and governments who are grappling with the need to provide the best health outcomes at affordable costs. HEOR helps them compare and choose from the available treatment options such as drugs, surgeries, and increasingly, prescription digital therapeutics, by considering both clinical and economic impact.

[Read](https://www.jmir.org/2019/10/e15814) the complete study.