This is purely a fiat money printer/prop up GDP scam.
This is analogous to Chinese ghost cities and mega projects: the Keynesians think government spending is economic growth.

Hospitals lobby state governments to legislate what procedures must be performed in a Hospital for a 10x markup, vs in an outpatient office.

Insurance companies lobby for the most expensive care, since Obama Care 80/20 rule which effectively caps profits to a percentage. The only way to increase profits was to increase premiums much faster, since 80% of premiums must be spent on care. The $care $ necessarily had to increase in order to increase premiums.

The other way to increase premiums is to have government mandate all kinds of care must be covered by insurance. Birth control, routine visits, things that people should be paying out of pocket, are covered by insurance, which ends up costing 10x what they would in a free market.