@ChrisMayLA6 because there's a moral hazard and that means opportunities for exploitation where the cost will not be borne by the business.
C.f. Aged care homes in Australia.
You can starve and abandon vulnerable people in care and nobody notices if the industry isn't heavily regulated and monitored. And if the vulnerable die or leave care, well - that's another spot opened up! (Make sure you get that hefty onboarding fee for each new child/aged person taken into care.)

Privatised care facilities are ghoul factories.