Or, how the government failed the people by allowing healthcare to be an unregulated for profit market.

It is perfectly fine for commercial entities to be present there. The conversation should be on acceptable profits and transparency in costs.

Situations occur where for example a knee operation always earns the clinic the same, private clinics wil only do the simple ones and make a killing while referring complicated cases to hospitals that take a loss on the procedure.

That's not true, just look at the USA, they're the most capitalist country and they have Free healthca.... Ups ¯\_(ツ)_/¯