There is no question that the health care industry, and most if not all industries which provide essential services, require regulation to keep honest people honest. That's what laws and regulations really do, and the more fraud potential (actual or perceived), the greater the regulation that results. In the end the regulations get so complex and competing that the cost of adhering to the regulation outstrips the cost of actually providing the service.

An old Florida saying matches almost all regulatory actions in spite of the good intentions - When you are up to your @$$ in alligators, it's tough to keep in mind all you wanted to do was drain a swamp!