Nothing to do with China - thats how the US system works. They are United States where every state has its own laws and ways to do things. Pretty much like 18th amendment in Pakistan. Medical/Medicine is provincial matter - so every province can go its own way to implement laws, buy items etc.
To elaborate, rather one may say american health care system is in the hand private hands and insurance companies. States are the payers for certain services. After the changes in laws during Reagan, the states or feds have further lost the control over the system. Large and consolidated insurance system have gotten stronger at the expense of doctors and hospitals.
18th commandment like situation is rather in Canada, where healthcare is provincial and public, and Fed provides the funds. Since Feds is the ultimate payer, somehow it dictates and set the standards, Further health research institutions are strong enough that provinces and fed cannot over-ride them..
On the other hand 18th amendment in Pakistan is an intellectual and administrative disaster, and regressive, a product of political hack job for political expediency. Less said about the 18th amendment the better. The current coronavirus situation is just an example but it is a failure, inefficient and regressive in dozen of other areas as well.