Medicare is extremely inefficient and it results in deaths too, from that bastion of Conservatism the Washington Post:
"In a four-year period, 106 heart patients at Palm Beach Gardens developed infections after surgery, according to lawsuits and government records. More than two dozen were readmitted with fevers, pneumonia and serious blood infections. The lawsuits included
16 patients who died.
How did Medicare, the federal health insurance program for the elderly, respond?
It paid Palm Beach Gardens more.
Under Medicare's rules, each time a patient comes back for another treatment, a hospital qualifies for an additional payment. In effect,
Palm Beach Gardens was paid a bonus for its mistakes."
http://www.washingtonpost.com/wp-dyn/content/article/2005/07/23/AR2005072300382.html
I don't know how much more ineffecient you can get than that.