privatized healthcare works, IF all parties involved in providing it (doctors, insurers, hospital administrators, etc) are moral people. When you work in an industry where other people's lives can be eliminated by your decisions however, some regulatory body needs to not only be watching, but regulating when necessary.
I work in healthcare, "death panels" are real TODAY. A board of trustees will meet to discuss whether it is worth it to perform an operation on a person that may potentially save their life today. Insurance companies TODAY habitually deny care or set unreasonable premiums and copays so the people that truly need insurance cannot afford it (so they go to the emergency room and we all pay). Doctors TODAY that have high insurance premiums to pay pack their schedules with patients and give sub par care (instead of the vital, more proactive care) which leads to repeat visits further clogging up their practice. Healthcare workers (nurses, pharmacists, etc) are understaffed leading to even higher rates of medical malpractice, sometimes it goes undetected because the patient just dies (seen that way too often).
I am not saying the current reform is the best answer to the problem, but I believe you sometimes have to "put feet on your prayers" so to speak meaning take SOME kind of action and if it isn't working fix accordingly. That's the great thing about this country, nothing is set in stone and can be shaped and fixed and made better.
As for what I think is the proper course of action for this country's healthcare industry, there should be a realm totally dedicated to preventative healthcare coupled with privatized treatment care. The preventative healthcare side should be socialized (everyone needs to at least have a freakin physical once a year) so that the really bad stuff can be caught early and treated more efficiently. The preventative side will just make sure the country is full of healthy and aware individuals (MRIs, ct scans, stress tests, blood tests, etc). This way if something bad comes up early, the insurance companies aren't barring such critical tests as MRIs just because they think it costs too much. Now since the people will actually know what's wrong with them, privatize treatment care so it is up to individuals whether they fix their problems or not. I would lump in this all physical therapy, hospital stays, procedures, surgeries, critical care, and to a degree urgent care (if it is a pre-existing condition). This way people already know their problems and insurance companies can set premiums more efficiently instead of charging everyone the most they can get. The best part is, if you don't want to pay, don't pay but you can't complain about not knowing what's going on anymore. The preventative healthcare side told you what's wrong with you, now you decide if you want to fix it.
This will never happen, Doctors on the preventative side would probably be hourly wage workers and would have a cap on their earning potential which they wouldn't like. Insurance companies would likely loose a pool of potential patients because i'm sure plenty of "healthy" people would opt not to have insurance since they already know what's going on with their bodies. Healthcare will always be screwed up in this country, which consequently means i'll always have a job.
But to finish, i would rather everyone get care and pay higher taxes (like every other developed country in this world) than pay my supercheap premium and have the best care in the world yet see working poor individuals die because of something totally treatable but unaffordable in terms of care. Call me a socialist if you like, I just think i care about my fellow countrymen.