A retrospective review of financial documents, cards and/or registration books ofrnHIV/AIDS clients/patients served/treated in Dil chora Hospital for one year and healthrnworkers death information in the last ten years was conducted to assess the impacts ofrnHIV/AIDS on the public sector health care services in Dire Dawa AdministrativernCouncil. There were a total of 809 HIV/AIDS service users at Dil chora Hospital fromrnJuly 2002 to June 2003 out of which 206(25.5%) were HIV test positive. Majority of thernHIV test positives and patients treated for opportunistic infections were between the agerngroup of 15 to 50 years. The jobless, illiterate, widowed and divorced were more likely torntest positive. The health care system subsidized greater proportion of HIV/AIDS services:rnonly 3.6% and 7.9% of expenditure on VCT and treatment of opportunistic infectionsrnwere recovered from user fees respectively. Admission of one patient with AIDS casernbarred on average admissions of two patients with other causes. The record of 16 healthrncare workerâ€™s died of any cause has been found in the last ten years: 75% of them werernmales, the mean age at death was 31.18 years and 81.25% were health assistants. Thisrnstudy indicated that HIV/AIDS is: directing health care resources to prime age adults (15rnto 50 years of age), blocking other patients from in-patient health care. And health carernworkers are dying prematurely from any cause. Lastly, ascertaining that all segments ofrnthe population are reached by IEC, properly targeting subsidy and looking for otherrnpossible ways of caring for AIDS cases, and ensuring health care workers safety at workrnare worth recommending.rnKey words: HIV/AIDS, cost, impact, public sector, health care.