Don private companies take short cuts in providing services in order to increase profits?
The reason governments are increasing their participation in partnerships with private contractors is because their constituencies approve of the high quality of services being provided without a commensurate increase in taxes. By reducing the quality of service, a company can reduce the possibility of repeat and/or new business. The profits made by the private-sector in these partnerships come from increased efficiencies, economies of scale and long-term financing that may not be available to the pubic-sector, and not from cuts in the quality of service.
