'Twas not ever thus. Indeed, as late as the late 1970s, small companies were still producing new and interesting pharmaceuticals.
Moreover, drugs aren't the only source of cures. Certainly surgical interventions don't generally come from commercial drug companies. And some categories of useful product don't come out of commercial drug companies at all -- their record on new antibiotic development in the past three decades is dismal to the point of near-criminality.
You have no idea, of those government provisions you listed, what the actual costs are. You won't be able to get the most efficient allocation of resources, because it's not a market allocation (people freely paying), but a political allocation.
Oh, and I don't care if a drug company is benevolent. Just that they are free to offer me the goods at a price that isn't rigged (as by regulation of competitors, for example).