No, they shouldn't work like private firms do. The lack of profit as a motive is precisely why they don't run cheaper.
This is pretty much basic economics.
No that is a simplistic summary. Why can state owned organisations not streamline things and be cost effective? That is where the problems start. I am not talking cost cutting. I would bet a lot of the most successful firms don;t really do that much cost cutting and short cuts. they ensure that they get value for money.
The failings of state owned organisations is not because private firms cut corners as such. It is because the state organisations end up not getting value for money because the whole concept of protecting all spending as necessary without self auditing properly because they become political tools.
Private companies want to make profit. We understand that. They want to pay as little for everything as possible. We also get that. There is a compromise in the centre between the 2 that both parties in the state (and in private) need to make but the state side's people (workers/unions) never concede and governments/the state are unwilling to meet at.
If a private version makes 10% profit then there quite literally the state should be anything up to 10% cheaper because they don;t need to make profit. The state has shareholders as well..the people.
I accept it doesn't work like private firms do. I would even accept if you said it couldn't work as private firms do. However you can't say it shouldn't because it should.
For a start the state has much more purchasing power than any private firm and anything the state buys should be working out cheaper than private quite simply because of the purchasing volumes involved. That is just one part that is failing massively especially in the NHS where we are paying over the odds on chummy deals with Big Pharma rather than utilising that purchasing power to get the best prices.
It isn't basic economics at all. It is a basic assumption that
"it is what it is and won;t change do we'll assess things on the assumption that it is what it is."
The problem as always is not with the model it is with the system in the way that the 2 parties don't compromise and don't play with the rules. Capitalism or Socialism the people always push for more of the pot and business/rich always want to put less in.
Like the Rush song - The Trees. Both sides want more, the little people demand they are being mistreated and the result is axes and saws to keep everything equal. A drastic measure because no-one could agree so everything gets ruled without compassion. Yes, everyone is equal now but it stifles progression. Any tree that succeeds is chopped level again:
There is unrest in the forest
There is trouble with the trees
For the maples want more sunlight
And the oaks ignore their pleas
The trouble with the maples
And they're quite convinced they're right
They say the oaks are just too lofty
And they grab up all the light
But the oaks can't help their feelings
If they like the way they're made
And they wonder why the maples
Can't be happy in their shade?
There is trouble in the forest
And the creatures all have fled
As the maples scream 'oppression!'
And the oaks, just shake their heads
So the maples formed a union
And demanded equal rights
'The oaks are just too greedy
We will make them give us light'
Now there's no more oak oppression
For they passed a noble law
And the trees are all kept equal
By hatchet,
Axe,
And saw