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1. The rate of consolidation in the DM industry has been dizzying. Less than 10 years ago, DM was full of mom and pop companies, selling programs aimed at a single disease. Now, there are really only 3 big players left: Healthways (the giant), Matria (the avis), and Health Dialog (the Kaiser Permanente of DM). Diversification is key in the industry as it goes forward. No company can beat Healthways at this.