The initial response was one of confusion, uncertainty, and fear, based on myths about the disease. From 1984 to 1986, correctional administrators retained many of their earlier beliefs and fears, but they also began to assemble specific information about how the disease is acquired and how it can be prevented. From 1987 to the present, administrators have focused on policy development and have seen increasing numbers of HIV-positive inmates. Policies include testing of new admissions, testing inmates with AIDS symptoms, testing inmates upon their request, segregating all inmates with AIDS, and segregating inmates on a case-by-case basis. In addition, approximately 40 percent of State and Federal prison systems are currently involved in AIDS litigation. Confidentiality will probably be the most difficult issue to resolve between health care providers and correctional facility administrators. The Philadelphia County (Pa.) correctional system has developed a comprehensive education and prevention program that includes inmate and staff training and the provision of condoms. Anonymous HIV testing and counseling for inmates who test positive will also soon become available.