Privatization and the Affordable Care Act

December 1, 2013


(Photo: Doug Mills / The New York Times)One of the main problems with the Affordable Care Act web site began with the Reagan administration and has adversely affected government performance since then. At that time, the management meme of concentrating on your core capabilities and contracting out other processes was applied to government. Government should contract out such non-core capabilities as logistics, food services and information technology (IT).

While it all sounded good, the policy had motives other than improved government operations. The practice of taking taxpayer money away from government salaries and moving it to contractor revenue and profits was certainly a part of conservative and business goals. If government were left with fewer internal capabilities and then failed at some important program, well, we told you government does not work.

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