The study included an examination of pertinent Pennsylvania law, prison and jail statistics, and current literature, along with contacts with corrections officials in Pennsylvania and other States and with private contractors currently providing correctional services. The potential benefits of private prisons are increased flexibility in addressing prison population changes and the special needs of prisoners, decreased time and cost for prison construction, reduced costs in a competitive marketplace, and economic benefits related to increased business opportunities. Potential problems are the current absence of mechanisms to protect and inmate interests in the operation of private prisons, the undermining of quality services due to the profit motive, and a government's dependence on a private entity. Other possible problems are the lack of provision for emergencies at the prisons, the liability of the government for the actions of private prison operators, and the lessening of public accountability in prison operations. Should private prisons be used in Pennsylvania, the basic requirements are a legislative provision for governmental oversight of private prisons and legal mandates and regulations for contracts between government jurisdictions and private prisons. Appended supplemental information.