Nonjwspouce,
You are 100% correct. Canadians flock to the US for hip replacements. It is painful stuff to wait for a replacement, as my good friend did for 4 months. Of course, he admits he waited three years too long to ask as he didn't want to admit he was old enough to need one!
It is also much easier to get a penis enlargement, nose job, breast augmentation, liposuction, etc in the US. Why, though? Because the law of supply IS in effect in healthcare. As prices rise, supply increases. These expensive elective surgeries attract talent to them.
If you were to step back and redesign the system.... if you had the power of all the resouces at your fingertips, like say, a nationally run medical system, would you perhaps take a few of those breast surgeons and have them work on breast cancer? Would you be ok that the wait time for breast augmentation went way up? If you had to decide between hip replacements and stints, might you be ok with a longer wait time on one to benefit the other?
I should also state that your example is a good case for private delivery. I'm not sure how it relates to universal insurance, however. It is my understanding the AMA is all about insurance and does not nationalize the delivery. (prepared to be corrected on this)