First, it is based on coercion, and I don't think coercion is an appropriate remedy for most things. This is a fundamental problem with government action. Governments raise their money through coercion, and impose their will through policemen and soldiers. When we turn to it, we are turning to the sword. Maybe this method can't be avoided for some particularly intractable problems, but forward-looking reformers should hesitate to use it.
Bureaucracies cost a lot, often fail to solve problems, and frequently make things worse.
A third problem with government action is that it is insensitive. Government acts through universal prescriptions, laws that apply to everyone. It therefore attempts to regulate situations it does not know anything about. There are millions of different doctor-patient situations. Unless we study each one, we cannot make a wise and fair determination of the proper prices to be charged.