That's a bit reductive. There's another thought - the government program might feel poorly run, but there are in fact a million contingencies that they have to pay attention to, that a startup doesn't; or the government program is poorly run, but it's better than the alternative (a profit seeking corporation driving down costs, but, ultimately, providing worse service at the expense of returns - see prisons).

I guess it all comes down to your definition of "poorly run".