The hospital is not worried about or concerned with law suits. They have scads of lawyers on retainer. They have insurance policies that cover the awards. And when the insurance companies raise their premiums, they just double the increase amount and pass it along to the suckers...er...patients.
Hospitals can charge whatever they want, but their reimbursements are contractually determined. No, hospitals can't "pass it on" to the consumers.
Hospitals have lots of lawyers but almost all of them are tied up in corporate compliance issues as mandated by the State.
Many, if not most, hospitals are self-insured, so, no, they are going to feel the pain with this very acutely. I can assure you of that.
Many health care providers call it quits before their time because they get fed up with the type of nonsense you are spewing out.
Other than those minors details, your post was really right on target.