Government effects the supply of healthcare providers by regulating the market. For example the number of healthcare educational institutions that train professionals is often limited by government. This tends to stifle competition and keeps salaries high. This is good for the select few healthcare professionals that graduate and land jobs. But it also means that as patients we ll pay more for our healthcare.
Government can also raise or lower the minimum requirements for entering a healthcare profession.
When standards are lowered there will be more candidates. Conversely, many insurance companies, hospitals, and HMOs prefer lower standards, lower wages, and more competition for their employees. The judicial system in the United States also has a profound effect on healthcare. When healthcare professionals make mistakes, the consequences are often matters of life or death. Mistakes that arise out of negligence or professional incompetence lead to medical malpractice suits.