That's indeed horrible, but you just have to look at it objectively. The hospitals couldn't just take his word that he'd pay them in the future, even though they would've known he could. However, the state may've been able to give him the money, but I have a feeling this happens much more than we hear about, just maybe in lesser extents (such as the person doesn't end up dieing, receives money elsewhere, etc). So if they give him the money, those who've begged and needed in the past throw up red flags.
Sadly, I think that the greed of humanity caused it, not the greed of the government.