Here are additional takeaways from your statement: things that sell in healthcare include 'time savings' and 'empathy extension factor' in addition to financial factors.
In the current environment, health care IT solutions will go further if they help professionals and patients do 'more with less' instead of 'more with more'. The dynamics in the article are real, but there are tons of way around the challenges posed. The article to me says that the market has yet to be cracked, but the opportunity is still pretty huge.
Their number sounds like it was based on the partners' personal feelings of being able to be of service and value to their startups, their portfolio. It seems that the aspect of YC the partners are trying to preserve is their ability to be personally involved to some degree rather than just straight selectivity.
What are some indicators as to whether a startup can and will survive co-founder drama? Co-founder drama is more common than not. YC has such a profound reputation and emphasis on co-founders, maybe the application should just directly ask for examples of past experience with co-founder drama and what people would do differently for the future.