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This summary from Wiki should help. Its been going on for at least 30 years. It's a real growth industry. Of course, the states own many prisons and contract out the management as well, so there's more than the article explains.
And it is also a problem. There has been cases of where judges/prosecutors have worked hand in hand with the industry to steer people to such facilities .. with compensation going to the judges/prosecutors of course... One of the worst cases was this one..
U.S. Judges Admit to Jailing Children for Money
God only knows what else is going on...