[burfog]

There is a huge conflict of interest if the hospital can charge more when a surgery goes badly.

The incentive needs to go the other way. The better the outcome, the more money the hospital should get. Bad results should mean they get nothing or even pay out, even without clear malpractice. If the hospital gets less than normal pay because a procedure went badly, there are several options for where that money might go: to the patient, to an insurance company, to a government regulator... but it mustn't go to the hospital.