This is very common in the private, for-profit schools in Sweden. The general procedure goes as follows:
1. Spend heavily on marketing to attract 'good students' 2. Avoid selecting 'bad students' 3. Automatically use the scores that follow from this selection to create a feedback loop that keeps bringing in good students 4. Cut as much spending as you can - you're getting paid a set amount of money per student from the government, after all 5. Pocket the difference
Meanwhile, the public schools are not allowed to engage in the same sort of filtering and are hence required to accept the 'bad students', which constrains their resources and creating the opposite feedback loop to what the private for-profit schools have.
Kind of sickening, to be honest.