And the same situation applies in water. If you're deprived of water.. you are dead in 3 days.

That's not a negotiation position. Without negotiation - there is no free market, there is only coercion and exploitation.
Indeed, a true free market can ONLY exist when your power to refuse to buy is GREATER than the  provider's power to sell to you. When demand is imminent life or death the entire concept gets reverse.
Now you aren't playing providers off against each other saying "Who will give me the best deal" . That entire negotiation power is now solely with the nearest provider who is merely saying: "This is my price. Take it... or die".

There is a *name* for when somebody says that-  hte name is 'extortion' - and privatised healthcare or water (or a few other things) are inevitably and exclusively extortion -they can NEVER be a 'market'.