Healthcare reform has changed how healthcare venture capitalists invest.
Investment in early stage biotech and medical devices has plummeted since the recession, and investors have switched their focus to inventions that serve simpler functions like lowering operational costs at hospitals and helping hospitals keep patients from being re-admitted, a costly process that the health law ties to new penalties.
“Venture capitalists say one of the trickiest things about this new world of investing is that their returns, in many cases, hinge on humans changing their behavior,” Sarah Varney writes at Kaiser Health News. “And that’s a lot harder than building a robot.”
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