Okay, so I finally watched the video. First impression -- that guy needs to cut down on caffeine consumption! But he does a fairly good job of covering all the bases, from spending to outcomes, and including variables like inelastic demand, and a broken negotiation process.

But I didn't come to the same conclusion as Ogre ("Should we let the government hand out contracts to the lowest bidder?") or Dread ("he makes a case for government-directed centralized price negotiation which definitely isn't a broadly usable solution unless we decide to embrace socialism").

I think you both focused too much on the "government" parts of his hip-replacement comparisons, and overlooked the consumer/provider "negotiation" part. He didn't do much to explain the symbiotic relationship between insurance companies and provider reimbursements, that basically treats patients as pesky variables. That's the nuttiest part of the US system.