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" ... Another distinguishing characteristic of healthcare is the fact that there are indirect deflationary forces. In light of the fact that only 20% of health outcomes are driven by clinical care, there are ventures I’m working with whose primary focus is reducing hospitalizations. With a few exceptions, hospitalizations represent a failure to extinguish a medical “fire” when it’s small. Unfortunately, we’ve rewarded hospital executives like they were hotel GMs tasked with filling as many beds as possible. That made sense in the “do more, bill more” era of healthcare but has done bupkes to improve health outcomes. Even the most conservative estimates say that at least 60% of hospitalizations could be avoided. ... "