Krugman, normally a hack and propagandist in my view, gets this right: Patients Are Not Consumers.
Patients are not consumers and physicians are not "providers": they are in a professional relationship of extremely personal and intimate content, in which judgement and individualized attention and care are required. Mutual trust and committment are key, and that is what Krugman wants.
On the other hand, Krugman would like us all standing in lines in government clinics. I think Krugman is a mixed-up person.