People don't seem medical services because they want to, they do it when they need them. It is the only industry where there price list might as well be replaced with "we will take as much as you can afford". No one can afford to be stingy with money with health and live of their loved ones on stake. It is very asymmetric situation, so it is clear to me why someone would want to ban for profit hospitals.
Nothing you said there is related to for profit hospitals, I live in Sweden and we also have for profit hospitals here, wanting to ban for profit hospitals is just stupid. There have been many in Sweden who want to ban profits in healthcare so that you can't go and get a private doctor, do you really want to do that?
If you want to make progress in USA you must separate the crazy left from the moderate left, if you defend the people who want to ban private medicine then you aren't going anywhere. Those aren't your allies even if they pull in a similar direction, even if they sit in the same party in the two party system.