The private sector provides a service also available from a public facility (where customers only incur a congestion cost). The quality of the service is determined solely by the level of congestion. The total number of customers is fixed. Examples include the provision of medical care and education. We study how optimal capacity, price and congestion level depend on market structure (monopolistic versus competitive), and on how the public facility is managed (fixed capacity or a maximum congestion level). We also discuss the impact of these elements on market share, customer congestion costs and total social cost.