EMO's and vouchers
Put it in prospective [sic]! The billpayer for almost all nursing home patients is the federal government who sets a single price for the operators. Thus, nursing home operators are call price takers (the same as grain farmers and gold miners). The only way for nursing home operators to make a profit is to lower costs. However, private schools are more like restaurants. People are willing to pay different amounts to get different experiences.
Or you might say people are able to pay different amounts to get different experiences.
But with a universal school voucher program, like the one the Bush Administration is pushing for Katrina evacuees, there is a set amount, making it more like the nursing homes than the restaurant.
The only way for educational management organizations, or EMO's as they call themselves, to make a profit is to lower costs.
Private schools have their place but it is pure delusion to imagine that vouchers would give a real choice to poor parents. Most private schools cost $10,000 or more and a fixed voucher amount simply won't cover that. Poor and middle class families would be stuck with EMO's that are constantly working to slash programs to make bigger profits.