On the micro level these behaviors produce higher quality, more efficient services - but in the massive system of healthcare provision it really falls apart in practice.
The inefficiencies of US healthcare are due to the constant stream of provisions and regulation bending by the providers and private interests. The result is a climate in which price gouging is the expectation and that running lean is less profitable than amassing size and lobbying clout.
On paper public healthcare is significantly more efficient in terms of cost per patient and quality of care.
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