I don't know if Thom Hartmann is being disingenuous or not, but I don't know any libertarians who are for "privatized" prisons. I think this might be a way to try to tag us a shills for corporate America. Unlike progressives, liberals, Democrats, Republicans and conservatives, Small "l" libertarians support repealing ALL victimless crime laws. Gun laws, drug laws, prostitution laws, etc. That would empty most of the prisons and jails around the country. Violent offenders, i.e real criminals would remain in prison. Non-violent criminals would be forced to pay restitution to their victims. To quote Lew Rockwell," As bad as bureaucracy is, contracted-out tax collection, "law enforcement," etc. is even worse, because it puts more efficiency into inherently oppressive activities. Municipal garbage collection, maybe, but not prisons and other criminal enterprises."
Privatization is not the same as having formerly governmental functions run by the private sector. "Privatization" ends up being sweetheart deals for the politically connected with the taxpayers footing the bill.