They do a very great deal more than that. Places with strong unions restrict what they do just so they don't compete with union labor. But that leaves enormous leeway, which is reliably exploited.
Many private prisons have contracts with states guaranteeing them a quota of prisoners, on pain of monetary penalties. It becomes the job of police and courts to deliver that quota, regardless of behavior, because there is no money budgeted for penalties.
Everybody can be found guilty of something, if you want to.
There's an explicit carve out in the 13th amendment's slavery prohibition for people convicted of crimes.