OBJECTIVES: The aim was to analyze the total direct costs of treatment of cutaneous drug reactions (CDR) from healthcare provider and public payer perspective divided by diagnosis groups. METHODS: We analyzed retrospectively data from 164 patients (57 men, 107 women) hospitalized in the Department of Dermatology, Military Medical Institute in Warsaw (from 2002 to 2012) due to CDR. Total direct costs from the public payer and healthcare provider were calculated for different diagnoses (based on ICD 10 codes). The analysis was based on data derived from the patients’ medical charts, daily medication logs, and cost data provided by the hospital organization and  accounting department. The services paid by National Health Fund (NHF) were grouped based on ICD-10 and DRG system. For the purpose of the analysis the hospitalization costs were calculated based on the prices for medical services established by the NHF on the basis of a contract with the selected health institution. RESULTS: : In the study group 3 CDR groups were identified: J38-severe skin disease (generalized rash) J39-large dermatological diseases (erythema multiforme) J49-gentle dermatological diseases (urticaria). From NHF perspective the most expensive procedure is J 38 – 962 € per patient (1€ = 4.24 PLN), the lower cost is for J39 and J 49 (476€ and 331€ respectively). From healthcare provider’s perspective the total direct costs equal: J38 – 630 €, J 39 – 552 €, J49 – 375€. Differences in costs could be due to high costs of the clinically severe diseases treatment incurred by the provider while according to the NHF, these units are classified as large dermatological diseases and thereby direct treatment costs are much lower than real provider’s costs. CONCLUSIONS: The analysis results suggest taking into consideration reclassification of the services by NHF or better estimation of DRG groups by the public payer.