For me the scariest idea is that a private company who runs the prison gets to decide how will you be trated there and how many additional punishments you'll have to suffer through and noone questions their right to basically own you.
A perverse and scary outlook they might possibly have: keep prison conditions in a way so that you continue to see high recidivism rates. Because if the prisoners keep coming back, that means you have easy repeat business.
There is of course concrete evidence to the contrary, as experiments in Scandinavian countries show. Treat prisoners with respect, give them a dignified place of living so they can think about what they did, and you'll find that actually both improves their mental condition and makes them very well suited to rejoin society.
"Ohio's deal requires the state to maintain a 90% occupancy rate, but Janes said that provision remains in effect for 18 months — not 20 years — before it can be renegotiated. As part of the deal, Ohio pays the company a monthly fee, totaling $3.8 million per year." [1]
Another big problem with private prisons and juvenile centers is that judges get greased to send kids to specific centers. [2]