Markets, the mechanism of choice, are designed to allocate the spoils to the winner. That's OK with supermarkets and car makers – it's not OK for the state. We can't have and can't allow schools and hospitals to fail and be replaced by the fittest.Yes we can. Hospitals and schools don't exist for their own benefit but for that of patients and of students. If patients can be treated more effectively by closing down a hospital and replacing it with a new one then why not do it?