I immediately tried to think of how the incentives could be set up this way and unfortunately couldn't come up with anything that didn't seem susceptible to gaming.
Ie, offer prisons a tasty carrot -- if it's tasty enough to be attractive, you get the same link between sentencing-happy judges and prisons. Sentence people who don't deserve it for a couple of months, they get out and don't reoffend.
In my ideal world the prisons would offer job training/therapy/etc.. and generally just start treating prisons like people, but it probably would be too easy to game. Prisons would probably try to game transfers to move high-risk to re-offend prisoners to other prisons. Sentencing gaming like you mentioned, probably lots of other odd and interesting unethical hacks that I can't even think of.
Just re-enforces my personal belief that for-profit persons are not a good idea at best, and immoral at worst.
Because prisoners being rehabilitated and rejoining society is contrary to the interests of the prison industry.
In my opinion, education for prisoners not serving life terms... PARTICULARLY for those with property offenses... should be mandatory. It's a no brainer. I don't understand why we don't mandate that? We should mandate work AND education for prisoners.
If I had my way... your release would be predicated on the achievement educational goals set for you by a warden.