Hospitals are the biggest cost drivers in healthcare. Regulation and litigation are primary responsible. Costs would come way down if providers were able to compete in an environment less burdened by price controls, regulation, and litigation.
You can get very good private care for elective procedures in overseas clinics at only about a third of the cost in the US. Medicare patients should really think hard about this option as rationing becomes the norm.
Price fixing is rampant in American health care.
Prices are set by the Blue Cross/Blue Shield system and no one complains...