Profit in it of itself is an inefficiency. It's a bandaid for the fundamental problems of the private sector. The fact the public sector isn't burdened by a requirement to make profit isn't a downside, it's a super power.

It's only a super power if you're buying those services instead of providing them for a profit (99.9%).

It's anathema if you're competing against someone who doesn't need to make a profit - when you're trying to make an 80% monopolistic margin (0.1%).