Healthcare Systems Failing in the USA

My husband is sitting in the next room, watching Meet the Press, while I sit at my computer and listen in, occasionally commenting on situations I find particularly vexing. There's a lot going on in the world today that's of concern (I'm understating. Bigtime!) and I'm not always happy with the ways in which politicians attempt to defend our country's position. But the thing that made me sit up and really pay attention, was the following statement, spoken by Senator Harry Reid:

In Nevada, for example, David, at our University Medical Center in Las Vegas, they stopped cancer treatment. People who are in Las Vegas--two weeks ago, women who had breast cancer treatment were said, "We have no place for you to go." They had to leave the state to do that. [link]

Now, I knew our health system was lousy, but it never even occurred to me that something like that could happen.

What other treatments, I wonder, have also been stopped. What is happening to the people who can't afford to travel out of state to seek life-saving medical treatments? How can we allow this to happen? Aren't there some less critical state governmental functions that could have been shut down, so that their operating funds could be funneled to this hospital? Why hasn't the federal government stepped in to prevent this?

This whole situation gets a big stamp of FAIL from me.