This is accurate. The socialized health care system in Germany worked fine for multiple decades, until a few years ago our government decided to reimburse hospitals not based on days a patient spends there (which created perverse incentives, agreed) but rather based on diagnosis. So, a hospital earns X euros for every patient with condition X, creating other perverse incentives, and resulting in less money for the hospitals, which of course trickled down to nurses.
The same happens here in Sweden. Since the implementation of more neoliberalist policies on healthcare, allowing more private clinics and paying clinics based on diagnosis created a perverse incentive to overdiagnose patients.
There was a case of a clinic that performed unnecessary surgeries and procedures just to rake in more tax money.
The problem isn't socialised medicine per se, it's trying to mash a socialised medicine system with "market forces", it's the ideology of the Third Way [1] to appease to these neoliberalist policy desires that is crumbling the Swedish healthcare (and welfare) system for the past 2 decades.
