To [Samuel] Abrams, the problem with for-profit operation of schools is not that businessmen are making money off the provision of a public service such as education. Textbook publishers, software developers, and bus operators all make money from schools and should, he said, but they are all providing a discrete good or service that can be easily evaluated. “School management, on the other hand, is a complex service that does not afford the transparency necessary for proper contract enforcement,” he said. “Without such transparency, there’s client distrust: parents, taxpayers, and legislators can never be sure the provider is doing what was promised; and the child as the immediate consumer cannot be in a position to judge the quality of service. Regular testing has been promoted as a check on quality. But teachers can teach to the test. And worse, as we know from cheating scandals in Atlanta and many other cities, teachers can change wrong answers to right answers on bubble sheets once students are done.”
From the International Education News blog at Teacher’s College, Columbia.
The trouble with the argument is that it rests on the empirical question of whether student test-based accountability systems for schools can work, and though the question is not conclusively settled, my reading is that the evidence seems to be leaning in the direction of roughly “yes".