Investment activity in healthcare was at an all-time high in 2017 with consolidation and venture capital funding reconstructing the industry, inadvertently leaving behind a fifth of our communities.Bigger is better was the theme as hospitals, payers, and health services companies consolidated. Diversification, vertical integration, and sheer size seem to be the target formula for navigating legislative uncertainty. CVS agreed to buy Aetna, asserting the combination could benefit consumers through improved coordination of care. Optum purchased Davita Medical Group, further expanding United Healthcares vertical integration into care delivery. Many hospital systems consolidated, including Dignity Health and Catholic Health Initiatives, which created the countrys largest not-for-profit hospital system.On the funding side, digital health and consumerism continued to attract billions of dollars from venture capital. The first three quarters of 2017 exceeded the combined total for 2016 digital health investments with over $5.3 billion invested, according to PwCs Q3 2017 MoneyTree Report. Many of these companies focus on personalized medicine, wearable devices, virtual care, and other strategies and innovations catering to more affluent consumers. One of the largest deals of 2017 was with 23andMe, a gene diagnostic company producing personalized reports on ancestry and health for people interested enough to spend $100 and spit in a cup.

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