Why government doesn't work

This evening I was watching a report on Channel 4 news regarding increased spending in the NHS.

Harry Browne always states on his radio show that government doesn't work. I had never fully understood why this is, until now.

The report stated that NHS hospitals in England were in danger of closing down services, notwithstanding the increased funding that has been placed into the service by New Labour. Why should this be the case? If extra funding has been granted to the NHS, shouldn't things be improving?

To me, this demonstrates that government programmes seldom turn out as intended.

Ideally the NHS should be completely privatised, since health care would be more efficient in the private sector. State-owned health care amounts to governmental force.