Sadly this isn't new, and hospitals are an example that comes to mind for me. At least one in particular. In 2007 there was a huge scandal about the treatment of US soldiers at Walter Reed, which was thought of as one of the top military hospitals. The initial reporting was from the Washington Post and largely focused on how the privatization of care and the contracting process itself had failed the patients so horribly.

I vaguely recall that building upkeep was delayed years because of contracting issues, and that the staff was slashed from hundreds (plural) to less than a hundred, claiming they couldn't find qualified candidates. There were complaints about rats, roaches, and black mold. I'm also fairly certain there was a story of one guy saying he was handed a shitty photocopy of the grounds and it took him hours walking around in a hospital gown to find his room. Two weeks later he found the person who was supposed to be running his case, and the case manager said they had no idea where the patient had been those two weeks.

Looking now, Wikipedia doesn't even mention privatization or contracting issues. The one (2010) complaint of this on the Talk page gets a reply saying "well the military was ultimately responsible for holding those contractors accountable," and it ends there. Not wrong, but still feels like it's not giving a full account of the story.

Obviously this is just conjecture now, but honestly the staffing part reminds me just like how, as I'm job hunting now, I notice companies keep posting the same ads, saying they can't find anyone who wants to work, while offering peanuts for very high requirements, and getting hundreds of applications. I'm sure lots of them aren't qualified, but I'm confident some of them are. I've even been offered significantly less than my last job paid, for a position (at a different employer) that would've been a manager for my previous level. I can only imagine how crazy it gets in the medical field.