Before the great depression (GD), there were charitable hospitals and benevolent societies up the wazoo. GD dried up middle class money and therefore much charitable giving so gov stepped in.
So yes, it could actually work that way, along w/a free market for paying customers.
Problem is, it’s not a free market as long as you have guaranteed buyers like the gov through medicare and medicaid.
That along w/other similar problems precludes the medical sector from being a free market.
As such, it costs more in charity dollars for specific service than it would otherwise, so to say.
So I think it’d help but will be limited effectiveness.
Socialism and capitalism don’t mix. When part of the sector is socialism it drags the rest down with it regardless, a la housing crisis 2008.
Health care became expensive when lawyers got involved in it.