The surgeon, of course, should be charged with callous disregard for life and imprisoned. Why punish the rest of society for his negligence?
You're making assumptions. If there's no insurance, if the doctor either quits or goes uncovered, there'll be nothing. Insurance is a risk pool, and as fragile as any patient. Make it too expensive for the market to bear, and there won't be any help for injured patients.
The system needs to be operated with hospitals and doctors on board as well as lawyers. There has to be built into the system arbitration and some common sense, or there will be no system at all shortly.