Background: The aim of this study is an assessment of direct costs of patients’ hospitalization caused by drug-induced skin reactions in Dermatology Department of Military Institute of Medicine during the period 2002-2012 from the public payer’s perspective and service provider, based on the DRG classification. Data and methods: The study was carried out in a retrospective way on a group of 164 adult patients hospitalized in Department of Dermatology between 2002 and 2012. The analysis was based on data from patients’ medical records. Due to the changes in health care system settlement during the long period taken into account for resources used identification, the one-year time horizon was settled to standardize cost calculations. The costs were evaluated in the perspective of public payer and service provider based on the DRG classification. Results: It was evaluated, that patient hospitalization due to drug-induced skin reactions within specific DRGs (J38 and J39), in the perspective of the public payer costs on average 971 euro per patient (J38) and 481 euros (J39) depending on the DRG group. When analyzing the complex diagnostics and pharmacologic therapy of the same group of patients in the perspective of the hospital costs the results is 636 euro in the J38 and 558 euro in J39 group per patient. Conclusions: Within the DRG, in case of J38 group the National Health Fund bear higher treatment costs than health care service provider. Higher costs are usually connected with higher amount of diagnostic examinations in case of severe dermatologic diseases, qualified to the J39 group