Give each prisoner a voucher for a certain amount and let them choose where they want to serve out their sentence. Prisons will compete to offer tolerably humane conditions to inmates while still keeping under budget. (Prison escapes will be punished by huge fines so there's no incentive to cheap out on security.)
Flaws with this system: do prisons have to take a given inmate? If not, there will be troublesome inmates nobody is willing to imprison. If so, there will be a lot of incentives to try to get rid of these troublesome prisoners as soon as they arrive. Also, there's potential for cosy arrangements between gangs and prison operators to direct business towards them in exchange for favourable treatment.
Plus it could be trialled on a small scale at first with just a few prisons. The main thing you'd need to watch out for is that prisons didnt just start working hard to offload their worst prisoners elsewhere.
EDIT: I wonder what would happen the the idea of jurisdiction under such a system, would prisons within a certain locality get preference or would it be nation wide?
In any case, I alternately applaud/decry this hilarious/appalling idea.
That's one view.
The other is that prisons are for correction and rehabilitation.
And there's a myth about prison right there. Spoken by someone who clearly has no idea how horrible prisons really are. And how dangerous and deadly they are for anyone even accused of offenses against children.
He shouldn't live, period: he should go straight from the jail where he was waiting trial, to the gallows. Prison should be for those who are bad enough to remove from society for a time, but not bad enough to execute; and since they will be returned to society, we should try to make sure that when they re-enter it they do so as productive, mentally-well members of society, rather than as beaten, brutalised future recidivists.
But not the moral implications of keeping someone caged like an animal for the remainder of his life. What's worse: to die in a week, or to spend decades in prison?
I bet if televised, public executions would be the biggest PPV draw in Oklahoma and Kansas. It could fund schools, lower taxes, and most importantly, fund bigger gallows for executing more of the people we decide shouldn't live anymore.
One example: when you're given a spork with your first meal, you might think that was the spork for just that meal, and toss it out with your meal tray. Wrong move. That was your prison-issue spork. Enjoy eating with your hands for the remainder of your incarceration.