Healthcare cost increases have slowed down, and I do not think that sector will out-perform the overall economy for several reasons. These topics are waaay too complicated to discuss without spending hours, but brief points of discussion for why costs are stabilizing somewhat:
1. Insurers are starting to move away from pay-for-service to pay-for-performance, which are specifically designed to limit costs while discouraging excess spending. The biggest example is the MIPS program by Medicare, which is supposed to start this year.
2. Insurance companies are consolidating while driving tougher bargains on reimbursements for services and medications. This is a big one, and will continue to drive down profits for hospitals and indirectly for pharmaceutical companies.
3. Pharmaceutical companies have picked the low-hanging fruit for profitable meds. Research costs have increased exponentially while profits remain fairly stagnant
4. Insurance companies' ability to increase profits is primarily driven by jacking up premiums while denying claims, and both options are limited by the ACA.
5. Consumers are getting smarter about prioritizing healthcare costs, and avoiding tests that would've been routine years ago (or at least reducing the frequencies).
I left out physician groups because few of these are public companies.
Of course, Trump and the GOP can blow all of this out of the water and who knows what'll happen. Or not. <Shrug!>
I am not directly invested in healthcare-sector funds due to conflict of interest regulations (I'm a surgeon), but even then would not consider them except for a small fraction of my investments for the above reasons.