Between indigent care costs, HMO's squeezing the hospitals, and the lawyers/malpractice insurance disaster, there isn't enough money to go round. Those factions with their hands in the trough, Trial lawyers, Medical personnel unions, Employers of illegals, Insurance companies who must respond to malpractice lawsuits, need to be brought down a notch, for the situation to improve.
On your premise that there should be excess hospital space, then it's a classic tragedy of the commons.
What's your proposal for another attack on NYC? It's not likely that you will be attacked unless you're in that location. I'm all ears.