The hed is instructive, “Chicago Hospital Accused of Cutting Throats for $160,000.”

When people talk about how the private sector solves everything, just remember this story:

A surgeon at Chicago’s Sacred Heart Hospital cut a hole in Earl Nattee’s throat on Jan. 3, the day before he died. It’s not clear why.

The medical file contained no explanation of the need for the procedure, called a tracheotomy, according to a state and federal inspection report that quotes Sacred Heart’s chief nursing officer as saying it happened “out of the blue.” Tracheotomies are typically used to open an air passage directly to the windpipe for patients who can’t breathe otherwise.

Now, amid a federal investigation into allegations of unneeded tracheotomies at the hospital, Nattee’s daughter, Antoinette Hayes, wonders whether her father was a pawn in what an FBI agent called a scheme to defraud Medicare and Medicaid.

“My daddy said, ‘They’re killing me,’” Hayes recalled, in reference to the care he received at the hospital.

Based in part on surreptitious tape recordings, an FBI affidavit lays out allegations that a Sacred Heart pulmonologist kept patients too sedated to breathe on their own, then ordered unneeded tracheotomies for them — enabling the for-profit hospital to reap revenue of as much as $160,000 per case.

They have witnesses who wore wires, and a number of doctors, as well as the CEO of the for profit (notwithstanding the Catholic hospital sounding name) hospital.

There is a reason why governments need to aggressively regulate, or operate, critical services, because incentives to produce good behavior are either ineffective, or more expensive than explicit regulation.

H/t JR at the Stellar Parthenon BBS.