A lot of it goes to inefficiency. Think of it this way. If you have a factory that makes 1 thing it can optimize around that. It can become cost effective. If y

A lot of it goes to inefficiency. Think of it this way. If you have a factory that makes 1 thing it can optimize around that. It can become cost effective. If you have a factory that can manufacture 10 different things, it becomes less cost effective because you need to be able to switch between the different things. If a factory can produce 100 different things it's even less efficient. Hospitals deal with thousands of things. Their overhead and complexity are high. This leads to inefficiency which costs more. I've read that the math around the costs map fairly well to the cost models around factories [1]. [1] https://www.amazon.com/Innovators-Prescription-Disruptive-Solution-Health/dp/1259860868/ https://www.amazon.com/Innovators-Prescription-Disruptive-So...