As more people have been arrested and handed out longer sentences for drug offenses, the number of private prisons has skyrocketed. Back in 1998, there were only five private prisons, but that number has grown significantly since then. As of 2023, there are 158 private for-profit prisons in the U.S., holding about 8% of the incarcerated population.
The private prison industry is highly profitable. For example, CoreCivic, one of the largest private prison companies in the U.S., reported $1.91 billion in revenue in 2020.
The debate over whether private prisons are effective at rehabilitating offenders has been going on for years. Many argue that for-profit prisons lead to worse conditions for inmates and harm efforts to help them rehabilitate.
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What Are For-Profit Prisons?
A private prison is a facility where the government contracts with a private company to house inmates. The government pays the company a set amount for each prisoner they hold. Prison privatization typically operates in one of three ways:
- Private companies provide specific services to government-owned and managed prisons, such as maintenance, food, or vocational training.
- Private companies manage government-owned facilities, handling day-to-day operations.
- Private companies own and operate the prisons themselves, charging the government a fee to house inmates.
In the 1970s, the U.S. launched the “War on Drugs,” enacting strict policies like mandatory minimum sentences to reduce crime. This led to a dramatic rise in incarceration rates, with the prison population growing five times over. To manage the overcrowding and rising costs, the government began outsourcing prisoners to private, for-profit prisons.
Today, about 8% of U.S. prisoners are held in private prisons, with most serving federal sentences. Additionally, 73% of immigration detention centers are privately run. Some of the top companies involved in running for-profit prisons include LaSalle Corrections, Management and Training Corporation, GEO Group and CoreCivic.
The Economics Behind For-Profit Prisons
As mentioned, for-profit prisons make money by contracting with the government to house inmates. In a typical contract, the government pays a private prison based on the number of inmates it holds.
For example, if it costs $80 per day to house an inmate and the prison can hold 500 people, a private company might charge the government $120 per day per inmate. The $40 difference is the company’s profit. The government usually agrees that running the prison itself would cost more.
On the surface, private for-profit prisons may seem like a good idea. However, the profit motive creates a conflict between making money and ensuring public safety.
Again, the main goal of prison privatization is to make money. They may push for harsher sentencing or collaborate with immigration authorities to secure more contracts. With a focus on cutting costs, private prisons often neglect rehabilitation, leading to higher recidivism rates.
Furthermore, private prisons cut costs by paying staff less, with wages $0.38/hour lower and $14,901 less in annual salary than public prisons. Staff also receive 58 fewer hours of training, contributing to a 43% turnover rate compared to 15% in public prisons. Some private prisons have been fined for understaffing, leading to safety concerns.
Impact on Inmate Conditions
Inmate conditions in for-profit prisons are often criticized for being worse than in public prisons. These private prisons are more dangerous, with higher rates of violent attacks on inmates. Since they make money by housing more prisoners, this raises concerns about whether the justice system is fair.
Another major concern in the impact of for-profit prisons is poor medical care. There are many reports of bad pain management, unqualified staff, and denied treatments. A recent class-action lawsuit by the ACLU in Monterey County, California, targets the California Forensic Medical Group (CFMG) for failing to provide proper medical and mental healthcare to prisoners.
The ACLU claims that CFMG “provides deficient medical care,” leaving inmates without the treatment they need. This leads to unnecessary pain, worsening health, and, in some cases, death.
Laura Barnes, a worker with the American Federation of State, County & Municipal Employees (AFSCME), worked at both private and public prisons. She began her career in a facility owned by CoreCivic (formerly Corrections Corporation of America).
Barnes says, “In the private prison setting, safety didn’t come first.” She remembers that in the private prison, her radio didn’t work in many areas, and the staff didn’t have basic safety tools like pepper spray or stab-proof vests. “In the public sector, we get those things,” she says. “It’s a safer environment.” This shows how privatized prisons often put profits over safety, risking the well-being of both inmates and staff.
Effect on Rehabilitation Efforts
Prison rehabilitation programs are not as good as public ones. Because private prisons focus more on cutting costs than offering rehab programs, they lack proper education and job training for inmates. The remote locations of private prisons make it harder for inmates to receive visits, which is linked to higher recidivism.
One study of 3,532 Minnesota prisoners found that being in a private prison increased the chances of being rearrested by 13% and reconvicted by 22%. The study controlled for factors like offense type and prison time.
Furthermore, a 2008 Idaho study showed that assaults in a private prison managed by CCA were four times more common than in the state’s other prisons. Between 2007 and 2009, CCA’s Otter Creek facility in Kentucky had more than twice the number of violent incidents as the state-run Kentucky Correctional Institution for Women.
More studies indicate that inmates who experience violence are more likely to re-offend. For example, an Ohio study found that prisoners who felt unsafe were more likely to recidivate, and another study in Florida found that 54% of violent inmates re-offended compared to 42% of non-violent ones.
Legal and Ethical Concerns
Ethical and legal concerns about private prisons are also deeply intertwined with broader issues of within the criminal justice system, namely fairness, justice, and accountability. A report by Michael Horowitz found that private prisons have higher rates of contraband, lockdowns, assaults, and complaints about food and medical care. Understaffing is a big problem, too.
Legally, they often lack enough oversight, meaning that poor conditions and abuses can go unnoticed. Government contracts with private companies don’t always make sure prisons are run well, leaving inmates at risk.
Ethical issues with for-profit prisons arise as they lock people up for profit, which can lead to higher incarceration rates and unfair treatment of poor and minority groups. They also use cheap prison labor, paying inmates little for work that benefits private companies.
Private prisons also house more inmates, boosting profits by $1.9 to $10.6 million per year. Inmates pay high prices for basic items and phone calls and often earn just $1 to $3 a day, relying on family to cover costs.
Groups like the ACLU and the Southern Poverty Law Center are pushing to shut down private prisons. They argue these prisons go against justice and fairness. More and more states, like California, New York, and Illinois, are working to reduce or get rid of private prisons altogether.
Alternatives to For-Profit Prisons
Publicly Funded Prisons and Their Advantages
Public prisons are more accountable because they are open to checks and audits, which helps reduce corruption and abuse. These prisons are also more likely to offer programs like education and therapy, as they are funded for long-term reform, not just profit.
Rehabilitation-Focused Models
Norway’s prison system is a good example of focusing on rehabilitation. Prisons like Halden offer spacious cells and focus on education, therapy, and job training. This humane approach leads to low re-offending rates, with many inmates successfully reintegrating into society after release.
Private Sector Solutions That Prioritize Rehabilitation
Unlike traditional prisons, some private rehabilitation centers focus on the root causes of crime. They help inmates rebuild their lives through therapy, job training, and education. Success is measured by reducing repeat offenses and improving mental health, not just by keeping inmates locked up.
Conclusion: The Future of For-Profit Prisons
According to the government, private for-profit prisons can be cheaper than running public prisons. However, the costs—both financial and social—are steep. Private prisons have faced controversy, with advocacy groups and human rights organizations filing many complaints and lawsuits.
So, will for-profit prisons continue to operate? Yes. Despite growing calls for reform, private prisons remain entrenched in the US criminal justice system. In fact, many states continue to rely on them, citing budget constraints and overcrowding as justifications.
Fortunately, more advocacy groups, such as the ACLU and the Southern Poverty Law Center, push for the closure of private prisons; some states have already begun to phase them out!
