[piokoch]

That's what you propose sounds like a really good idea. One concern though: it seems that many people (not all of them) who end up in prison are not really a good people. Maybe for some of them education, psychological help, etc. would indeed help, however there could be a certain and not negligible percentage of people who will not take advantage of those opportunities and prefer to be criminals. No private company would decide to risk its income for a potentially bad bet. Recidivism rates in the US are high - from 45 to 80 percent (depending on various factors). Even if this was cut to best of the World Swedish 40% recidivism rate, this still will not be economically viable.

[FireBeyond]

That's more a matter, then, of adjusting the algorithm such that you recognize there will always be some recidivism, and you tier your goals, such that current status is "barely profitable", costs covered, etc., and that each leap to a new tier is more and more profitable.