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Venture Capital Flows to Cost-Effective Health Care Companies

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Hospitals and doctors are facing a lot of heat these days to clean up their act. Medicare and some health plans are beginning to withhold payments for medical mishaps, preventable infections and re-admissions. The federal health law also forces them to pay more attention to how much they're spending -- and all of this has a direct effect on the kinds of investments Silicon Valley venture capitalists are betting on.

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