You're assuming that the whole problem with healthcare is that doctor's simply charge too much.
You're not explaining how you'd eliminate malpractice awards, malpractice insurance costs, and malpractice legal expenses.
You're not explaining how you'd eliminate ALL the government influence that's preventing Medicine from being a free, competitive market. (i.e Medicare, Medicaid, assorted Laws, Regs, Codes, Ordinances, etc. that impact Insurance costs, medical costs or both)
Once you eliminate those kinds of factors, then you might be able to hope for a competitive, demand-driven market amongst the healthcare providers. How many Hospitals can your neighborhood support? If it can't support more than one, then there's no competition in your are, and prices will remain high. I'm sure EVERY neighborhood has enough Doctors, though, so you might actually see competition there. Or else mutual price-fixing. Depends on whether Doctors are in it for the money or the desire to provide quality, affordable service. Heh heh. I almost said it with a straight face...
Healthcare prices can't be manipulated by supply and demand the way a grocery store, a lawn service, or a prostitute can. When the Government is one of your biggest customers (medicare/medicaid) AND one of your biggest policymakers, it's not the same as dealing with a free market.
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