Doesn't the author's sentence mean: hospitals and insurance companies have coopted regulators for the benefits of their own businesses, at the detriment of medical device companies (developing AI)?
Possibly that was the intended meaning, but the point is still invalid. Hospitals want more cool gadgets. They want to be able to treat more conditions and charge more for it. If anything, the FDA is a constant annoyance to a healthcare provider because it hamstrings them from providing care. This is why so many patients are enrolled in clinical trials, to get care ahead of the FDA approval time frame.
Right, the FDA is what's wrong with American healthcare. Not the insurance agencies or the for profit hospitals making as much money as possible. The lack of single payer healthcare is one of America's greatest failings on that end.
I think the author's point still stands.