How does a fully privately operated prison differ from a prison where only some services are contracted out?

In the context of penology, the distinction between a fully privately operated prison and one where only specific services are contracted out lies in the scope of management and authority.1

Models of Privatization

• Contracted Services: In this model, the government retains ownership and management of the facility, including all functions related to the deprivation of liberty. Private companies are hired only to provide auxiliary services, such as building maintenance, food service, transportation, health care, or vocational training.1
• Fully Privately Operated: In this model, the entire operation and management of the prison are contracted to a commercial business or non-profit organization. While the state often retains ownership of the buildings, the private entity assumes responsibility for the day-to-day administration of the facility.1

A more extensive version of the fully private model involves a consortium taking a project from the design and construction phase through to final operation, where the state agrees to pay for a set number of prison places over a long-term contract.1

These arrangements represent a shift toward a market model of prisons, which can convert high initial capital expenditures into long-term revenue obligations for the public.1