The thing is that hospitals doesnt have to worry about the profitmargin. They got a budget - sure, but you are never gonna worry if your healthensurance will cover whatever disease you get. It also covers Europa
In the univercities there are people working only on basis research. Why is this good? Because they look into stuff private companies would never do, because the risk of it not turning out profitable is high, but its research like that, that will bring about the cure for diabetes.