Doctors are independent business operators. Well, most of them, anyway. Like any other business, they need to turn a profit, and that simply doesn't happen if you're consistently charging the lower prices. While I doubt most doctors would choose procedures that deliberately harm a patient, I also think that many of them might choose a more expensive way of doing things if there's little risk involved.
Whether they want it to or not, doctors are motivated by money to perform more c-sections. It's almost certainly unconscious, because I want to give doctors the benefit of the doubt that they are not corrupt. It's just human nature. People react to incentives, even when they don't know that they are. If you present incentives that favor c-sections over natural births then you are going to see more c-sections. It's how humans work and you can see this by the rapid increase in c-sections over the last few decades.