We have obviously routed out a LOT of fraud by forcing the auto repair industry to change its practices to inspect -> quote -> customer decision. I guess the question becomes this - is there so much fraud in this industry that we need to do this change? Even if it's NOT fraud, have hospitals simply become used to charging anything they want because they have no competition?
Combined with the emotional state most patients are in (something other industries, like mortuaries, prey on as well) and you have a recipe for gouging even under ideal competitive regulations.