The way physicians practice medicine is changing, and investors are betting that this trend will accelerate. In the past few years, venture capital money has moved from an almost-exclusive focus on developing new therapies to a portfolio that now includes healthcare information technology (HCIT) and services companies. The intent of this strategy is to alter fundamentally the nature of medical care provision, focusing on improved physician care, increased labor productivity, and reduced use of hospitals and other facilities. The combined impact of these changes for physicians and the facilities in which they practice could be profound.
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