The best hospital systems in the world, like Mayo Clinic and Cleveland Clinic, are generally non-profits operating in a mixed system where they take private insurance, out-of-pocket payments, and medicare/medicaid. They have to remain competitive otherwise they won't attract customers from out-of-state or out-of-country. If you basically force patients on the public system to only use certain government-run hospitals, you're dooming them to an inferior experience than what you could get by perhaps enhancing access to public pay for some services.