[bisRepetita]

because if you are the single payer (govt), you can negotiate much much better rates.

[masklinn]

Unless of course you are barred by law from negotiating rates.

[addandsubtract]

Laws that you, the govt, make?

[masklinn]

Yes. There are different levels of governments and those can be at odds (witness: laws limiting or barring municipal internet).

And there are people who specifically aim to be elected to kneecap government services.