I think this is happening already. My 92 year old father passed last year. Lived a long, healthy, active life up until 6 months before death. They found cancer and he chose hospice care instead of trying to treat it. In his case, the attempted cure would have been worse than the alternative, I suspect. He avoided expensive and impersonal hospital care and he died surrounded by family and friends and at home. The entire family is convinced the correct decision was made.
Many hospitals are experiencing financial problems and I think it is a result of many people chosing hospice instead of the hospital. They used to make lots of money from the dying that they don't get any more.
I think hospital financial problems are caused by their emergency rooms’ care of the indigent, myself, and other mandates placed upon them by the state or fed gov’t. Things such as providing translators for those who don’t speak English and so forth.
I have seen both types of death - in a hospital hooked up to tubes, and at home with familiar things and people always present - and of either, I believe your father was very wise.