Quote:
Originally Posted by Fuzz
Well of course we aren't getting the cost savings. And now they've tied us to one provider. What happens at the next contract renewal? Obviously there will be no competition, because how could there possibly be, given the massive barrier to entry for providing services to all of Alberta? So it will be a like a hostage negotiation with no options. What a brilliant plan...
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The existing set up with government having lab capacity and private sector having lab capacity was likely fairly good. It maintained the bargaining position of the government while taking advantage of private sector efficiencies (lower salaries) resulting in the best of both worlds scenario. Much like having a public telecom option. The government doesn’t need 100% market share just enough to be a credible threat.
It’s always worth remembering the only thing worse than government monopoly is a private oligopoly.