Hispanics have been reported to have one of the highest rates of AIDS in the United States. OBJECTIVE: To examine the hospital costs and disposition status of Hispanics with AIDS. METHODS: Inpatient cost estimates, adjusted for medical inflation and cost-to-charge ratios, were developed using data from all-payer 1996 discharge databases from California, Florida and Massachusetts, supplemented with fee schedules. Log transformation was used to address highly skewed distributions. Adults (age >17 years) were dichotomized into Hispanic/non-Hispanic groups. A hierarchical methodology using ICD9 and ID codes was developed to identify patient-level data. Length-of-stay (LOS), disposition, emergency room (ER), special care unit (SCU) and admission rates for AIDS data were also examined. Hospital costs (i.e., accommodation, ancillary, physician) are reported in 1998 US$. RESULTS: Of the 39,110 AIDS discharges, 6,649 (17%) were coded as Hispanic. On average, Hispanics were admitted for AIDS-related care 1.7 times during the year versus 1.8 times for non-Hispanics. A difference of 0.4 days in LOS was noted between groups (Hispanics = 8.5; non-Hispanic = 8.1); however, a higher mean per diem cost of $1,874 (difference = $117) was noted in the non-Hispanic group. Thus, the difference in the overall mean cost of a hospital stay, albeit slightly higher for Hispanics ($14,101 vs $14,012), was small. Admission via ER was 55% in Hispanics; 54% in non-Hispanics. Of the10.4% Hispanics and 9.1% non-Hispanics in SCUs, SCU time accounted for 50% and 52% of the stay in each group, respectively. Of those discharged alive, 2.6% more of the non-Hispanics were referred for formal health care services. CONCLUSIONS: Although some differences exist, the results do not appear to constitute a substantial differential economic consequence between the groups.