Of course this is disgraceful, but it's by no means limited to government - there's plenty of waste in private industry, we just don't hear about it as much. I have a friend who recently worked as a consultant for one of the big health insurers in California. She talked about a multi-hundred-million-dollar development project on a new IT system that they scrapped before implementing. You'd think someone could have pulled the plug before the project got into 9 figures.
Of course, from a cost standpoint, healthcare is a disaster here in the US (I think we spend about 2x as much per-person as the next highest country, and I suspect it will only get worse under the new reforms). Having relatives who work in healthcare, and seeing the mess that's resulted from multiple, independent providers who don't share data efficiently (i.e. hospitals, doctors and clinics) and multiple, independent insurance monopolies that negotiate separately with each provider, I can't imagine a public healthcare system wouldn't be better than what we have. Of course, half the country seems to think having the government involved in healthcare is 'evil socialism'... at least until they hit 65 and go on Medicare, at which point most of them seem to like it.
When I see how the US reacts to complex debates like this it's hard to believe we've been as economically and militarily successful as we have.
- ss