The same thing goes for quality of medical care - when they mess up they get to fix their own mess and charge for it.
For example when our first kid was born, the gynecologist had her trainee pull our son out with their rope thing. She was supposed to apply pressure during the contractions, only she panicked and pulled my son out in one go (she was using her legs to push for force, you can't make this up). The result is that the baby was born quickly and my wife was ripped open. She required urgent surgery to put herself back together, then a month stuck laying in bed and about three months before she was mobile. She still have problems because of it.
The hospital were happy because they could charge three times as much for the corrective surgery than they charged for delivery.
My example was in The Netherlands, where the healthcare costs are well under control and the culture isn't quite so brutally selfish ("free market") as other countries. I can't imagine what it's like living in the US.