But theory is reality, the western world is being overtaken by the East because we are now so uncompetitive due to regulation and high taxation.
The NHS is the exact same, its a government monopoly that is also at the mercy of big business which drives up costs not only because government is inefficent and cannot run things in general, but because of the monopoly the NHS is forced to pay higher prices for drugs from drug companies than they would do in a market economy. The problem with the US system is the fact that the US government is too heavily involved in terms of regulation. Before masses of regulation and red tape (the old British system, similary the old American system) the free market worked perfectly well but it is only since regulation that the western world has suffered decline and soaring costs such as in healthcare itself - we have in the west reached a point where you now have some sectors so heavily regulated (healthcare being a prime example) that they are public sector in all but name.
UKIP don't currently have as policy the breakup of the NHS, but Farage hinted at a more Ron Paul/libertarian approach in the policy review coming in 2011 when
he spoke the other day at the IEA. I do however think the NHS could be run by the state if the right people got in, but again - its state run and usually ends in soaring costs and badly run management.
Regulation only serves to help big business/corporations, look at the lobbying that goes on in the U.S./Westminister and Brussels.