Medicare and state licensing agencies more or less control the hospital bed capacity in the US, not commercial incentives.

Want to build a hospital in many states? Better be able to convince the licensing agency there is need for the beds. Want to build a hospital and accept Medicare? Better meet all the structural requirements they put in place.

Open the March update pdf here and look at the "excess" column on page 4:

https://www2.illinois.gov/sites/hfsrb/InventoriesData/Monthl...

The state has big impact on the capacity of the medical system.