[CipherThrowaway]

>increase of supply lowers the price at equilibrium

The thing you're missing here is that "healthcare services" and "doctor's labor" aren't the same unit. Ceteris paribus, efficiency increases allow the price of healthcare to decrease while the price of doctor's labor increases. The thing that makes this non-contradictory is that a single doctor can now produce "more" healthcare. Economics says the opposite of what you think it does here. Increasing productivity drives expansion in market size, which drives up the ratio of value in the market to its labor inputs which drives up salaries.

Like I said, there might be important real-world reasons why these scenarios won't play out in medicine the way the theory predicts. But so far, you haven't provided any.

Manufacturing has also seen the opposite of what you are saying here. Global manufacturing production value has exploded over the last century, quite literally lifting billions of people out of abject poverty. In particular the last 3 decades of enormous per capita income increases in China have been driven by industrialization. I'm guessing you're taking a US-centric view that is exclusively focused on the local collapse of US manufacturing. This is to do with globalization and free trade, not improvements to labor efficiency.