I believe the article addresses approximately your point: AMA's initial drive to increase physician incomes was motivated by increasing competition from home

I believe the article addresses approximately your point: AMA's initial drive to increase physician incomes was motivated by increasing competition from homeopaths (AMA allopaths use treatments--usually synthetic--that produce effects different from the diseases being treated while homeopaths use treatments--usually natural--that produce effects similar to those of the disease being treated). [...] Apart from reversing rapidly declining incomes, allopaths also wanted to rescue their public reputations, which quite reasonably suffered given their proficiency in killing patients through such crude practices as bloodletting ("exsanguination") or mercury injections (poisoning). You're right - homeopaths were competitive with allopaths. But in the late 1800s (when most of the doctors/homeopaths grew up) the state-of-the-art physician was not much better (and perhaps often far worse) than what you are judging homeopaths.