PIP: To compare the efficacy and cost of managing mildly or moderately dehydrated diarrhea patients with oral rehydration soulution (ORS) versus intravenous fluids (I.V.), hospitalized patients were analyzed retrospectively during 2 different time periods. In 1981, 133 of 134 patients, 110 of whom were mildly-moderately dehydrated, were managed only with I.V.; while in 1982, 126 mildly-moderately dehydrated received only ORS, 15 severely dehydrated patients were given short term I.V. followed by ORS, and 29 mildly-moderately dehydrated patients were given I.V. before ORS, due to non-acceptance of ORS and/or persistent vomiting. In 1981, all but one of the 134 patients received I.V.; in 1982, 126 of the 155 mildly dehydrated were rehydrated with ORS alone, while the remaining 29 mildly dehydrated were rehydrated with I.V. followed by ORS. 15 severely dehydrated patients were treated with I.V. plus ORS. The average hospital stay was 3.6 days in 1981 and 1.6 days in 1982. The average net expenditure per patient was Bangladeshi Rs. 323.08 in 1981 and Rs. 99.61 in 1982 (about Rs. 9 to US $1. The present study thus establishes the usefulness of ORS at the hospital level, and its statistically significant impact on reducing the duration and cost of hospitalization. Moreover, use of ORS also indirectly avoids other disadvantages of I.V., such as overhydration, electrolyte imbalances and thrombophlebitis, all of which are not uncommon.