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Prison occupancy quotas require the government to spend public dollars on housing and supervision of a certain number of inmates, whether a prison is empty or full.
As of 2016, about 19 percent of federal prisoners are held in private prisons. Private prisons are a multibillion-dollar industry and growing. Take for example Coercive (formerly Corrections Corporation of America), the largest operator of private prisons in the U.S.
The United States has the world's largest private prison population, with private prisons housing 8.5 percent (128,063) of the 1.5 million people in state and federal prisons nationwide, the report says. The federal government is the country's single largest user of private prisons.
A private prison, on the other hand, is run by a corporation. That corporation's end goal is to profit from anything they deal in. In order to make money as a private prison, they receive a stipend from the government. This money from the government can be paid in a multitude of different ways.
Private prisons in the United States incarcerated 128,063 people in 2016, representing 8.5% of the total state and federal prison population. Since 2000, the number of people housed in private prisons has increased 47%. States show significant variation in their use of private correctional facilities.
A private prison can offer their services to the government and charge $150 per day per prisoner. Generally speaking, the government will agree to these terms if the $150 is less than if the prison was publicly run. That spread is where the private prison makes their money.
With the government paying private prison operators about $23,000 per year per inmate (keep in mind, the minimum wage is $15,000 per year), it's a lucrative business.
Statistics from the U.S. Department of Justice show that, as of 2013, there were 133,000 state and federal prisoners housed in privately owned prisons in the U.S., constituting 8.4% of the overall U.S. prison population.
The Private Prison Industry Most well-known are companies such as Corrections Corporation of America (CCA, which has rebranded as “Coercive”), the GEO Group and Management & Training Corp. (MTC), which own and operate prisons, jails and other detention facilities.
Most privately run facilities are located in the southern and western portions of the United States and include both state and federal offenders. For example, Pecos, Texas is the site of the largest private prison in the world, the Reeves County Detention Complex, operated by the GEO Group.
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