Without ability to make a profit then you are restricting a service / goods.
Really bad idea - the state paying is one thing, the state being able to provide what is needed and in an efficient manner is another matter entirely.
The state is paying...the state being the taxpayer that is.
Private companies in the care sector don't make much profit from individuals. The tax payer tops everything up or pays for the full care of certain people in our community. These services had previously been handled by NHS affiliated teams, under the taxpayers direct control, through local authority distribution. Over the last 10+ years these same services have been moved to profit making care providers. Pay £30 for 3 nurses 10 years ago, now you pay £60 for 2 nurses, because the rest is used for administrative costs and profit provision.
The staff wages have risen in line with government requirements but providers charge the tax payer (government/local authority) for provision of these services - including admin/management/HR etc. In theory, that should lead to a cost reduction but, it doesn't. Because the private companies run at a profit, which is fine but why is the government outsourcing things at a higher cost?
Now, if it was government run, we would see the problem of mismanagement, because there is no drive to generate profit, you get wastefulness. Which is why Conservatives adore privatisation and the US insurance based health care systems. Max profits, only those with money get care, the poor are kept poor with ridiculous health care/insurance costs, poor performance of frontline staff leads to dismissal...perfection!
The current NHS crisis (every winter it's falling apart a little more) is caused by poor management. The government throw more money at it, the NHS hires more administrative staff and it strangles itself with red tape and confusion. Who's in charge of what? Nobody knows. There's so many layers that nobody can even work out what to do with it. The government will look to privatise, that will cut costs of admin staff but the privatisation will require profits to be made eventually, so costs will rise for the most simple of things. Then you'll end up back to square one again, lots of managers and paper carriers, no actual frontline staff.
Exactly the same problem with mental health care. It's diabolical. Nobody knows who's in charge, there are various care teams with multiple tiers of staff and managers, nobody is actually responsible for anything, they just pass things around the offices like some kind of sick joke. Privatisation doesn't solve that problem, it exacerbates it by seeing individuals as walking piggy banks.
What it really needs is someone to cut the BS and chop off the top 1/3 of management/directorship/administrative roles in government/local authority run departments/organisations.