If the regulations are unnecessary, then why not dispense with them and let the free market work.
Surely you don't think government is more efficient than the market.
We've had appalling experiences with privatising critical infrastructure in the UK. Not only is privatisation almost invariably more expensive for tax payers and end users, and privatised companies reliably behave like bad actors, but privatised companies tend to continue to benefit from state-sponsored monopoly positions - because the cost of entry for national-scale operations is too high for start-ups.
For healthcare, a single price negotiated by a single state-owned org is hugely more efficient at reliable and economic service provision than any privatised alternative.
The only thing it's less efficient at is generating shareholder profits.