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Malpractice insurance is not infinitely expensive.
As for economies of scale, there are not a lot of them. One doctor and one patient.
Ok it isn't bloody free either. What do you mean there is not a lot of them? Have you been to any clinic the past 30 years? Look at all the gear they got. What about medications? They aren't going to be able to buy in bulk. It feels like every single doc I have met in my life tried at least once to go into private practice and struggled.
But hey if these are easy to defeat problems I am all for someone doing it. Open up a clinic and run it at cost and donations. Take no insurance and somehow find a way.
Malpractice insurance accounts for about 2.4% of overall healthcare costs in the US. Meanwhile, healthcare costs are going up at around 4% a year. So, let's assume malpractice never really happens (ha) and we can entirely eliminate that cost by outlawing malpractice suits completely. Great, we just solved half a year of healthcare inflation.
Do you know what "marginal cost" means?
Edit: that was more aggressive than is helpful.
Marginal costs capture the costs for helping one more patient, so most of the issues presented are handled. Fix costs cover the cost of equipment that can be reused without additional costs. Fixed costs can be paid for with "one time" money like grants and donations.