The facts that the private sector dominated US health system is hugely expensive and inefficient, whilst the public sector dominated NHS is rated as one of the most efficient in the world should be enough to convince most people that it is a myth that the private sector is somehow inherently more efficient than the public sector.
When it comes to health care provision it is quite easy to understand why greater private sector involvement causes inefficiencies in the system.
If the NHS signs a 30 year PFI contract for a new hospital, or outsources the provision of health care services to a private health company on a 25 year contract, these contracts can only be escaped from at enormous cost in compensation. Even modifying the contracts to take account of changing needs is extraordinarily expensive.
When such long term contracts are signed, the NHS is legally obliged to continue paying for them, no matter what the changing health care requirements of the community. These obligations build inflexibility and inefficiency into the system.
When the health system operates under a single umbrella, services can be modified with relative ease, but when contracts with hedge funds, private equity groups and multinational healthcare companies have been signed, any modifications incur large financial costs.