As the United States grapples with the highest incarceration rate in the world, a controversial question lingers behind the bars: should the business of punishment be profitable?
New data shows that private prisons continue to rake in billions by capitalizing on incarceration, often at the expense of vulnerable populations and ethical justice. Behind the curtain of cost savings and “efficiency” lies a system where profit margins rise with every inmate booked.
Attorneys at Anidjar & Levine, who focus on justice for the underserved and injured, argue that this corporate-driven incarceration model raises red flags across both public policy and human rights.
The Business Model of Mass Incarceration
The private prison industry operates on a pay-per-head formula: the government pays private companies a daily rate for each inmate housed. On paper, this is sold as a cost-effective alternative to state-run facilities. But in practice, it costs more per inmate $150 per day, compared to $100, according to Investopedia.
Even with the higher price tag, these companies slash internal costs to maximize profit. That means paying inmates as little as 13 to 52 cents an hour for labor, offering reduced healthcare access, and staffing facilities with underpaid, undertrained officers.
Estimates suggest the industry brings in about $374 million annually, while power players like CoreCivic and GEO Group pull in more than $3.5 billion combined from state and federal contracts.
Where Private Prisons Thrive—and Where They Don’t
As of the end of 2022, 27 states and the federal government outsourced some of their prison operations to private companies. States like Montana (49.4%), New Mexico (30.6%), and Arizona (28.8%) rely heavily on private prison beds.
On the other end of the spectrum, 22 states, including California, Michigan, and New York don’t use private prisons at all. These states have rejected the idea that incarceration should be a business, citing concerns over safety, accountability, and outcomes.
While private prison use has increased 5% since 2000, 87% of all inmates nationwide are still housed in public facilities. That split, however, continues to fluctuate with each administration.
Federal Policy Flip-Flop
In a significant political move, President Trump reversed Biden’s 2021 executive order that phased out federal use of private prisons. As of early 2025, there were no federal inmates in private facilities, but that could soon change under the new order titled “Initial Rescissions of Harmful Executive Orders and Actions.”
With the stroke of a pen, the door was reopened for contracts with private prison giants. The impact could result in thousands of federal inmates returning to for-profit facilities despite well-documented issues tied to safety, rehabilitation, and systemic abuse.
Safety, Staffing, and Suffering
One of the most alarming patterns in private prisons is the 65% higher rate of violent incidents compared to state-run institutions. Cost-cutting is a key culprit: lower wages attract less-qualified staff, and minimal training reduces conflict resolution skills and emergency preparedness.
Healthcare is another weak link. Studies report that infectious diseases such as tuberculosis occur more frequently in private prisons up to three times more than in public ones, due to overcrowding and poor sanitation.
For law firms like Anidjar & Levine, these conditions aren’t just unethical, they’re potentially grounds for legal action, especially in cases where incarcerated individuals suffer preventable harm due to gross negligence.
The Role of Lobbying in Keeping Prisons Full
Perhaps the most insidious aspect of the private prison model is its influence on criminal justice policy. According to campaign finance reports, private prison corporations spend over $1 million annually lobbying for tougher sentencing laws, like mandatory minimums and three-strike policies.
This creates a vicious cycle: harsher laws increase incarceration rates, which in turn keep private facilities full and profitable.
By promoting legislation that prioritizes punishment over rehabilitation, these corporations undermine efforts to create a fairer and more effective justice system.
Justice for Sale? The Legal Repercussions Ahead
The growing body of evidence linking private prisons to violence, healthcare neglect, and legal manipulation is likely to become a larger battleground in the legal space.
Experts at Anidjar & Levine emphasize that the justice system should serve the people, not corporations. As awareness grows around the harms of for-profit incarceration, so too does the demand for reform. Lawsuits alleging mistreatment, wrongful death, or negligence within private prisons are already appearing more frequently and could eventually force structural change.
The Path Forward: Policy, Not Profit
As the national conversation about criminal justice reform evolves, one thing is becoming increasingly clear: privatized incarceration doesn’t just raise moral questions, it introduces legal risks and public safety threats.
Whether through new legislation, federal oversight, or strategic litigation, the movement to reclaim the justice system from profit-seeking hands is gaining ground.
Until then, legal advocates and firms like Anidjar & Levine remain vigilant, pushing for transparency, accountability, and a justice system built not on contracts, but on conscience.
