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Private Prisons -- Profitable and Growing

NCJ Number
132709
Journal
Corrections Compendium Volume: 15 Issue: 3 Dated: (April 1990) Pages: 1,5-8,16
Author(s)
R Welch
Date Published
1990
Length
6 pages
Annotation
More than 40 secure adult correctional facilities, housing about 14,000 inmates, were operated privately by early 1990. While this represents only 2 percent of the total number of adults held in detention nationwide, the private corrections industry is growing by 50 percent a year.
Abstract
Opponents and scholars have raised moral, legal, and ethical questions about this trend in privatization, but economic realities are forcing many critics to reevaluate their positions. As the new industry continues to develop, surprising features are emerging which could change the face of corrections in coming years. For example, private money allows facilities to be built without voter referendums. The case for private efficiency and cost savings is well documented; the three leading companies in private corrections are all operating in the black. As a result, many Department of Corrections managers are happy to cooperate with private companies, despite the opposition of union employees. The private sector is not trying to take over the entire corrections field; finding niche markets may prove to be more profitable in the long run. If nothing else, the private corrections industry will force government agencies to revise their own practices including bidding and procurement procedures.