I so agree. The flavor (left, right) of totalitarianism in any form is, still, repression.
To add to Kevin and Brian's point, I might also suggest that appropriate scale comes into play. A 20-bed hospital, for instance, would focus upon the needs of the individual than a 200-bed hospital, which would focus more upon its own system.
When an organization becomes too big, satisfying the needs of the individual become less important than systemic concerns.