It's not driven by the dearth of suppliers, it's driven by the impossibility of choosing the cheapest provider due to a combination of 1) the lack of transparen

It's not driven by the dearth of suppliers, it's driven by the impossibility of choosing the cheapest provider due to a combination of 1) the lack of transparency in hospital pricing; 2) not being able to anticipate your expenses; 3) the insurers being able to "cheat" by agreeing on lower prices with the providers; 4) insurers forming a cartel. When there are so many forces pushing against the creation of a free market and a healthy balance between supply and demand, there is only one thing that the government can do: either socialize it (that's what happens with roads, for example), or regulate it like there's no tomorrow (that's what happens with utilities). However, in the US it is blasphemy to even suggest doing either thing to healthcare.