kollelman,
People used to pay their doctor for pregnancy visits, and 200, 500, whatever to deliver a baby. Today’s rates are insane, probably due to the fact that OB/GYN doctors are probably paying 200k/year just for malpractice insurance.
Part of it is the fact that a dollar today has a different value than it used to. A loaf of bread used to cost less than 20 cents. A Manhattan apartment could be rented for under $50 a month. Another part of it is the increased use of technology, which is expensive. The infant mortality rate is a lot lower today than it used to be. And yes, malpractice insurance does also play a role in the higher costs.
Some “routine” interventions done in hospitals likely are not as necessary as they are made out to be. Also, for healthy pregnancies, birth at home or at a birth center with midwives is much less expensive than a hospital birth with an OB who is essentially a surgeon overseeing a natural process that usually does not require surgery.