As someone who worked at one of these places (not gonna name names because I think I signed an NDA) Buy let's just say it has some semblance of a relationship to the one in the OP.

The big problem is that most of these kids have no where to go after. They get absolute dog shot education, they get mentally and physically abused, and they often have other issues that need professional help they aren't getting.

The 2nd issue is that the parents are rich as fuck. You have to be to send your kids there. So it creates a horrible cycle where they become dependent on their parents or end up in prison.