Let's try a car analogy. Suppose you run a car dealership where only 50% of the people paid for the cars they bought. You cannot repo the cars, so you would have to sell the other 50% at double the price to offset the 'deadbeats'.

I have family in the medical profession, and when I hear about 3000% markups on scalpels, and $150 needles, and $850 per night for a room (does not include nurses fees, doctor rounds, or supplies) I understand how the hospital makes money when a lot of the people in the hospital cannot pay thier bills, the people with insurance do!