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Most prisons are operated by government agencies. However, some private corporations have seen the potential for profit in owning and operating private prison facilities under contract to local governments.
In the United States, private prisons are paid a per-prisoner, per-day rate by the contracting government agency. Private prison executives claim that when governments contract with private prisons, the taxpayers save money. A recent Arizona state study apparently indicates the opposite is the case.
One major private prison company is Corrections Corporation of America. Wackenhut Corrections Corporation (which briefly operated as WCC) is now named GEO Group.
Importation of mixtures of prisoners from distant states has been particularly volatile. Between May and September 2004, for instance, massive riots in CCA prisons endangered employee, prisoner and public safety and caused significant damage in Oklahoma, Colorado, Mississippi and Kentucky.
Many denominations have called for a moratorium on construction of private prisons, or for their outright abolition. These include Catholic, Episcopal, Methodist, United Church of Christ and Presbyterian.
External links
- The all-volunteer Private Corrections Institute, a comprehensive source of information on the industry
- Corrections Corporation of America web site
- Barry Yeoman, Steel-Town Lockdown, Mother Jones
- Case Study on Financing a Private Prison Company