In the land of the free, incarceration is big business. And behind this billion-dollar system are private corporations profiting off incarceration at a cost that goes far beyond the bottom line, impacting public safety, legal fairness, and human dignity.

Fueled by outdated policies, financial incentives, and aggressive lobbying, the private prison industry remains deeply embedded in the American justice system. For legal advocates like the team at Anidjar & Levine, this for-profit incarceration model is more than just controversial it's a direct threat to justice and public trust.

Behind the Barbed Wire: The Private Prison Model

The premise is simple, but the implications are staggering: private prison companies like CoreCivic and GEO Group sign contracts with state and federal governments to house inmates for a daily rate typically $150 per prisoner, despite actual costs being significantly lower.

To maintain profits, they trim wherever possible: staff are paid less, inmate labor is compensated at pennies per hour, and essential services like healthcare, mental health counseling, and sanitation are often minimal or delayed.

In return, these companies generate $3.5 billion in annual revenue, with $374 million in profits estimated across the industry. But these numbers mask a system that prioritizes bed quotas and occupancy levels over rehabilitation or accountability.

States That Embrace And Reject Privatization

In 2022, private prisons held about 91,000 people, roughly 7.4% of the nation's total prison population. However, this is not evenly distributed across the country. In Montana, nearly half of all incarcerated individuals are in private facilities. New Mexico, Arizona, and Tennessee also house upwards of 25% of their inmates in privately-run prisons.

Meanwhile, 22 states including large ones like California, New York, and Michigan have completely eliminated the use of private prisons, citing safety concerns and ethical misalignment with public justice goals.

Yet even in some states that “banned” private prisons, loopholes persist. For example, Illinois, despite its ban, still housed 1.1% of its prison population in private facilities as of 2022.

Violence, Healthcare, and the Human Toll

Private prisons don't just cost more—they often deliver less. Studies show that they experience 65% more violent incidents than their public counterparts. Overworked staff, low pay, and underfunded programming create unstable, unsafe environments.

Healthcare is similarly lacking. In 2021, private facilities reported three times as many tuberculosis outbreaks as state prisons—a symptom of overcrowding, undercleaned facilities, and poor medical oversight.

For legal professionals like Anidjar & Levine, these aren't just policy failures—they're potential grounds for legal claims. Inmates harmed due to preventable conditions, or families of those who die behind bars, may have recourse if negligence can be proven.

The Financial Feedback Loop: How Incarceration Becomes Incentivized

It's not just about cutting costs—it's about keeping prisons full. Private prison corporations spend more than $1 million each year lobbying for stricter laws, mandatory minimums, and longer sentencing guidelines that guarantee a steady stream of inmates.

The result is a perverse cycle: the more people locked up, the more profitable the system becomes. This runs counter to bipartisan efforts nationwide to reduce mass incarceration and redirect funding toward prevention and rehabilitation.

When corporations lobby to shape the laws that fill their beds, justice becomes secondary to shareholder interests.

Federal Politics and the Power Shift

In January 2025, the reinstatement of federal contracts with private prisons under President Trump reversed the progress made by President Biden's 2021 executive order to phase them out. While no federal inmates were in private custody as of February 2025, this policy reversal reopens the floodgates.

Critics argue this sets the stage for increased federal reliance on private prison firms, a move that could undermine efforts toward a more humane justice system.

For attorneys at Anidjar & Levine, policy shifts like these make legal oversight more urgent than ever—especially in protecting vulnerable populations caught in a system driven by profitability, not rehabilitation.

The Myth of Cost Savings

Private prisons often pitch themselves as cost-effective, but the math doesn't always add up. While some reports claim they save 12% per inmate, these savings are often achieved by:

  • Reducing staff wages and training

  • Offering minimal inmate education or re-entry programs

  • Underpaying incarcerated individuals for labor

  • Slashing healthcare and mental health services

These cuts may save money in the short term—but at a long-term cost to rehabilitation outcomes, recidivism rates, and public safety.

Public Pressure and Legal Accountability

Growing awareness of the consequences of privatized incarceration is putting the industry under a microscope. Lawsuits alleging wrongful death, inmate abuse, and neglect inside private prisons are on the rise.

Legal advocates—including firms like Anidjar & Levine—are increasingly calling for accountability through the courts, urging victims and families to seek justice when the system fails them.

A Justice System for People—Not Profit

Whether driven by dollars or ideology, the use of private prisons challenges the foundation of America's legal principles. As calls for reform grow louder, one thing is clear: a justice system cannot serve two masters.

Policymakers, legal professionals, and communities alike must decide whether the future of justice will be guided by rehabilitation and equity—or by the margins on a quarterly earnings report.

And until that choice is clear, those harmed by this system will need strong legal advocates to fight for their rights—advocates like Anidjar & Levine.