Budget Impact of Adopting Nirmatrelvir-Ritonavir for Treating COVID-19 in a Large Integrated Healthcare System - Summary - MDSpire

Budget Impact of Adopting Nirmatrelvir-Ritonavir for Treating COVID-19 in a Large Integrated Healthcare System

  • By

  • David P Bui

  • Denise M Hynes

  • Edwin Wong

  • Robert Vergun

  • Lei Yan

  • Yuli Li

  • Nallakkandi Rajeevan

  • Kristin Berry

  • Hung-Mo Lin

  • Yuan Huang

  • Diana J Govier

  • Mihaela Aslan

  • George Ioannou

  • Kristina L Bajema

  • September 24, 2025

  • 0 min

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Objective:

To assess the budget impact metrics of prescribing nirmatrelvir-ritonavir (NR) for COVID-19 treatment in the Veterans Health Administration (VHA) for treatment-eligible Veterans.

Key Findings:
  • 18% of treatment-eligible Veterans were prescribed NR, indicating potential underutilization.
  • Treating all patients reduced healthcare costs by $20 million but increased total budget costs by $122 million due to NR purchasing costs, highlighting the financial trade-offs.
  • Targeted treatment of high-risk patients resulted in healthcare cost savings of $17 million with a modest total budget increase of $3 million, suggesting a more efficient allocation of resources.
Interpretation:

NR may lower healthcare utilization costs associated with COVID-19, but its high purchasing cost likely outweighs these savings, necessitating price reductions for financial viability and sustainable treatment options.

Limitations:
  • Real-world effectiveness of NR may vary, affecting budget impact estimates, particularly in diverse patient populations.
  • Broad eligibility criteria may lead to treatment of patients with marginal benefits, complicating cost-effectiveness assessments.
Conclusion:

Risk-informed allocation strategies are essential to maximize treatment benefits while minimizing budget increases; price reductions for NR are crucial for its sustainable use in healthcare systems, especially under budget constraints.

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