Plus, the AMA/AOA has been lobbying for more residency spots for a while now, which would increase supply for physicians. These are generally things that could bring down costs.
Maybe it's the opacity surrounding billing. What exactly costs $7k when you are hospitalized for 3 days? Hell, let's skip the ER and the procedures and go with a mental health inpatient stay. There's 72 hours of oversight by the staff. If they're making $20/hour, which isn't off-base to my knowledge and may be generous as they generally aren't BSNs, that's $1440 in wages. Food for 3 days and maybe an hour, hour and a half of the doctor's time over the course of 3 days, and medication. Those additional things don't add up to the remaining $5,560. Even with the cost of the building, electricity, janitors, it doesn't add up. So why does it cost so much for a 3 day stay without an emergency medical procedure?
Also Physicians make 200-600k/yr, that pays for the school in a year.
If you spend time studying something useless or not making money you wont get money. Its as simple as that.