Prison Reform Incentives

A non-profit prison company that restructures financial incentives to focus on rehabilitation and reduced recidivism, competing against traditional private prison companies by leveraging tax advantages and a success-based payment model.

Key Points:

• Core Innovation: Payment Structure

  • Government pays after prisoner serves term and stays out for 5 years
  • No upfront payment for prison beds
  • Creates incentive to rehabilitate and prevent return to crime

• Business Model

  • Operate as non-profit organization
  • Use tax advantages to outcompete private prison companies
  • Focus on quick rehabilitation and successful reintegration
  • Get paid based on successful outcomes rather than occupancy

• Target Market

  • Government contracts for prison operations
  • Focus on rehabilitation-ready inmates
  • Compete against traditional private prison companies

• Key Challenges Identified

  • Heavy lobbying and marketing requirements
  • Local politics and job dependencies
  • Deals rarely recompeted (35+ year contracts)
  • Decision makers don't personally benefit from cost savings
  • Required locale-by-locale approach rather than federal level

• Expected Outcomes

  • Lower recidivism rates
  • Reduced prison populations
  • Cost savings for government
  • Better rehabilitation outcomes
  • Disruption of current private prison incentive structure