The tragic insertion of a middle layer, the insurance industry (AKA Death Panels), makes it even more tragic and inefficient.
You can not seek profits in a competitive environment without reducing every cost to the bare minimum. Of course they are going to cut staff costs, and the number of properly staffed beds to the bare minimum, it minimizes costs. If a surge happens, they're happy to pay a little bit of a premium in the cost side for extra staffing. It's more than compensated by the extra billing.
But the recent public health emergency was a seiche, a tsunami, a pulse of unanticipated magnitude. (Unanticipated in the minds of those looking to meet this quarter's numbers, not in the minds of long term strategic thinkers).
The wrong type of people are in charge of health care in the US, and our nation will not be secure until this changes.