Smith and Lipsky (1992) discuss the notion of privatization in health and human services. They note that an increasingly common form of privatization involves contracting with nonprofit organizations and that such practices do not follow market principles. In particular, these arrangements are fraught with politics and inadequate information and are built upon long-term relationships between government and contract agencies. They indicate that contracting hides, to some degree, the growth of government in part due to the fact that the press and government critics are not accustomed to making contract employees an issue. Some additional problems associated with the privatization of health and human services include: substantial consumer and contract administrator transaction costs, high costs associated with monitoring and evaluating service providers, and inequitable distribution of services. Sparrow (1996) reviews methods of Medicare and Medicaid fraud in the US and argues that electronic claims processing will result in an increase in fraudulent claims.