Loan forgiveness like other tax incentives merely distort the market. Just pay the doctors what it costs to get them there, we are probably over paying by giving loan forgiveness.
Sometimes it simply doesn't make economic sense to provide a service that people need.
Witness broadband availability and other things, and you'll see that the free market won't provide a service if it can't make money.
This is about government funding - it's not a free market solution, it's about the government being honest in how much it is subsidizing different areas. If the total cost was visible perhaps people would say - hey maybe people shouldn't live there.
I'm also pro-single payer healthcare, and want us just to get on with it.
I don't believe the value of people is just the money they earn.