Via Wretchard, every industry touched by government gets worse. The graph points to one specific example, the massive increase in administrators in health care over the last decades. Like any other product, your health care gets more expensive the more salaries have to be paid to produce it. If you were just paying the doctor, the cost would be whatever the doctor thinks his time is worth, plus the cost of any medicines, tests, or supplies. If the doctor needs an assistant, her time has to be factored into the cost as well.
(An aside: I just employed that new academic standard of alternating the genders of pronouns to refer to nonspecific persons that Jason was asking about the other day. Notice how it looks exactly like an offensive assumption that a doctor would be male and his assistant a woman? But if you turn them around, the alternative construction will offend other people just as well. It's a terrible answer to the question of replacing 'he' as the universal standard for a person of unspecified gender. I think the old standard is better, but even the ungrammatical "they" for a singular individual of unspecified gender is better than this.)
So if the doctor needs four assistants to manage all the paperwork, now you're paying five salaries for however long the doctor is seeing you. Even if the other costs remained flat, your bill has to be several times higher than it was just to cover the needful salaries of the administrators.
Regulation does this across the board because there are always costs of compliance to regulations. Everything gets worse the more you regulate it.