The impact of investment activity on our industry cannot be overstated, with the velocity of capital pouring into the health sector reaching stratospheric proportions. The valuation of private equity deals in the US health care sector is nearly $100 billion dollars—a twentyfold increase from 2000 (when it was less than $5 billion). Before COVID-19, we were already seeing mass provider consolidation, expansive funding in digital health, and significant M&A activity…and the appetite for capital investment in healthcare has only increased in recent years. The amount of capital being poured into the health sector, and the velocity at which it has been deployed, is reshaping the landscape and a driving force in the future of value-based care. Joining us this week is Don McDaniel, the CEO of Canton & Company. Don engages with pioneering healthcare firms across the industry, all striving to win in the new health economy. A true market-maker, he focuses on advancing innovation, elevating market positions, and connecting complementary players to disrupt and reshape the industry.  Don McDaniel is a healthcare visionary, master economist, serial entrepreneur, and lover of a good debate.  In this episode, he will provide insight into the continued increase in the appetite of private equity and other institutional investors.  He will discuss whether this interest is good or bad for consumers, patients, providers, payers and other stakeholders.  He will also overview the interest level and forecast of investment activity, explore pros and cons from various stakeholders’ perspectives, and consider the implications of such investment on the value movement.  If you are a business leader trying to understand current investment trends and whether or not institutional equity actually improves the overall industry health of healthcare, this episode is for you! Private equity (PE) has been ramping up investments in healthcare over the last several years. Read this brief to learn more about the intersection of PE and value-based care, including potential negative and positive impacts, and recommendations for industry stakeholders. https://institute.smallworldlabs.com/files/354   Episode Bookmarks: 01:30 The valuation of private equity deals in the US health care sector is nearly $100 billion dollars—a twentyfold increase from 2000 (when it was less than $5 billion). 02:45 Introduction to Don McDaniel, the CEO of Canton & Company 04:45 The number of healthcare services deals among institutional investors has more than doubled in the last six years, with 356 deals in 2015 and a whopping 733 deals in 2021. 06:30 “The system is broken.” – Investment fervor is based on the “train wreck” that is American healthcare. 07:20 The arbitrage opportunity for capital investment based on historical spending and inefficiencies 08:10 Referencing Jim Collins: Confront the Brutal Facts (from Good to Great) 08:30 How negative labor productivity in healthcare contributes to dysfunction 09:30 “If the airline industry had the safety record of healthcare, no one would get on a plane.” (iatrogenic errors creating bad outcomes) 10:00 “Healthcare lacks true consumer sovereignty.” 10:30 Adam Smith’s “invisible hand” has been missing from healthcare since 1965. 11:30 Consumer dissonance drives system inefficiencies and how that is attractive to investors. 12:10 “Healthcare is a credibly inefficient business backed by massive tailwind demand.” 12:30 The impact of an aging population on our nation’s healthcare system 13:45 Opportunities with massive consumerization and privatization of Risk 14:30 Private Equity investment activity at an all-time high 15:20 The international opportunity for healthcare disruption across the globe as the American system undergoes transformation 15:40 Early indications of inflationary pressures and other macroeconomic factors on private equity investment activity