That is only a part of the story for medical tech. The stuff would be expensive even if sold at cost.

In my experience, medical devices cost a lot to make because a lot (if not most) of the hardware is custom, the amount of required testing and documentation/traceability is stupendous, and the sales volume is comparably low.

The high manufacturing cost (per unit) combined with the high fixed cost (per product) drive the prices up pretty quick.