There are substantial kickbacks (called “site commissions”), where a large percentage of the per-minute rates are paid to the facilities for the right to the contract. A typical rate is 50%, and these can run as high as 96%. Given they get a percentage of every dollar spent, the facilities also have an incentive to keep costs high to increase their revenue, not to give the end consumer the lowest cost of connection.
Does any of this money also get sent back to the county/state too? Just wondering what other stakeholders are benefitting from the status quo.
Does any of this money also get sent back to the county/state too? Just wondering what other stakeholders are benefitting from the status quo.
Given the way these prisons are run (it seems often poorly with a profit motive rather than one trying to help reduce recidivism) why not just start a nonprofit private prison from scratch and manage the whole thing? Palmer Luckey mentioned this in an interview a while back as something he’d be working on if he hadn’t decided to build Anduril: https://www.forbes.com/sites/jilliandonfro/2019/10/31/palmer-luckey-oculus-anduril-forbes-under-30-summit-nonprofit-prisons/?sh=7f3d1615ecee