There is a model of how healthcare should work. It is called cosmetic surgery. Since insurance companies usually don't pay for this, it is handled on a cash basis, for a fixed fee. There is an actual market system for plastic surgery and things like laser eye correction. Since it is a capitalist system, it is both affordable, and good quality. The problem with the rest of the healtcare system is that the gubmint has mucked up all financial reality.
Unfortunately it doesn't address the issue of how the poor, and much of the middle class, are to get medical service. The basic, underlying, irreduceable reality is that medical care is EXPENSIVE. No modern society will tolerate a situation in which some people drive Rolls' while others watch their children die of easily treatable, easily prevantable diseases because they can't afford to see a doctor.
You are absolutely dead-on. Look at the laser eye correction industry right now. Remember a few short years ago when they only offered Radial Caratotomy for $10,000? Lasik is now available for a fraction of the cost, it's safer, better, and we're seeing new innovations all the time.
The market is truly the way to go!