No profit system means 100% funding via the government, which means MASSIVE tax increases (more than you can possibly imagine). R&D costs are funded via profit. The reason why some countries can run close to a no-profit system is since the US pretty much covers the R&D costs of the world.

As for your other issue, the government can be helpful with helping fund costs of "unprofitable" conditions. The Orphan Drug Act is a nice example of such a private/public partnership.

Bottom line, I don't mind the government helping out and paying for some needs, but it should never, ever, try to run HC in any way. The government is way too incompetent to do anything other than cause huge problems.