Oh to have a government-protected market share and, as a non-profit organization, pay no taxes. That's the status of many hospitals, which, as the Wall Street Journal noted in yesterday's edition, can soak customers.

The hook of the story is about a hospital in Roanoke, Virginia that charges has a $4,727 for a colonoscopy, which is "four to 10 times what a local endoscopy center charges for the procedure." Carilion Health System even runs a venture-capital fund and some athletic clubs, and enjoys the status of being one of the largest employers in the area.

In 1989, the U.S. Department of Justice failed in its effort to prevent a merger between Carilion and another system. Normally I'm skeptical of antitrust efforts, but then again, it's not as if new hospitals are free to enter the market. (See our posts on certificates of need requirements that states impose.)

Says the Journal: "Originally set up to serve the poor, nonprofit hospitals account for the majority of U.S. hospitals. They are exempt from taxes and are supposed to channel income they generate back into operations, while providing benefits to their communities. But they have come under fire from patient advocates and members of Congress for stinting on charity care even as they amass large cash hoards, build new facilities and award big paychecks to their executives."

It looks like there's a lot of rent-seeking at work, with hospital officials raking in big bucks and, according to some doctors, using its government-assisted market power to squeeze them out of business. And in a move worthy of robber-barons and company towns, a reporter who upset hospital officials with his coverage was assigned to another beat.

But wait, there's more! A large contract for a new facility was let to ... a company owned by a member of the board.

I'm all for companies being able to make a profit. Our country's economic success depends on it. But there's a difference between a private market and a free market. Unfortunately, government gets so involved that markets are seldom free, especially in health care and health insurance.