Nothing has been made because Aunty Tilly got a massage or haircut either. Healthcare is a service industry, and if selling services is a valid business model, then healthcare is a valid business model.

Healthcare doesn't build value, it preserves value. Healthcare is one of the best investiments in workers. If you have ailing workers, their productivity is lowered by far. Do you work as well when you're running a high fever? Or does it take you longer to do less? Aunt Tilly's $20,000 bypass saved her life. If Aunt Tilly's $20,000 bypass allows her to continue in specialized, highly-skilled labor, it's by far the economically correct choice to give it to her. Maybe that $20 K could have been spent on cars or toys or gadgets, but if that money keeps a productive worker producing, it's not a bad usage of money (and in fact is a very good usage of money). Think of it as maintanence on our machines. Maybe getting your car serviced doesn't produce any tangible good, but it sure saves a lot down the road when your car functions in 5 years instead of just dying on the highway.