No debate needed, just one word:
FEMA
The reason you pay more for health care in US is because there is no government price fixing which inevitably results in poorer service by less qualified individuals using older equipment and technology. Ask him to provide one example of something the government does more efficiently than the private sector. As far as consolidating the industry...of course it would result in some efficiencies. That would hold true for any industry. That doesn't mean that you don't give up anything. What about the loss of jobs? What about the loss of tax revenue to the government resulting from those jobs? What about future innovations and break throughs that come as a direct result of competition?
What this guy is arguing (consolidating entire industries and making everyone goverment workers) is called Communism and it has failed in every instance that it has been tried. You don't need to argue with this guy, that argument was lost long ago.