Private Insurance pays healthcare providers higher rates than Medicare. Private Insurance rates serve as a subsidy for healthcare providers, allowing them to fund advanced services & facilities while also accepting the lower Medicare rates.

I don't understand how removing this Private Insurance, and then moving everything to Medicare rates, wouldn't instantly reduce the amount of money flowing into the healthcare sector and cause massive slowdowns in all areas, from research, to quality of facilities, to provider pay (nurses, doctors, phlebotomist, hospital janitors), to real estate, and most other sectors of the economy.

It would be great if industry rates were lowered, but many aspects of the economy are relying on rates as they exist presently.

It seems the more optimal route would be to slow the increase of rates, but this seems to be at odds with the process of untangling Private Insurance and implementing a new Medicare for All System.

So my question is, how does Medicare for All cut costs without collapsing the healthcare sector?