Hemorrhage from peptic ulcers continues to be a significant problem, with approximately 150,000 hospital admissions per year in the United States. The new challenge in the management of these patients is to maintain the best outcomes using the least costly diagnostic and therapeutic measures. This article reviews the hospital cost areas incurred as a result of the management of patients with acute hemorrhage from peptic ulcers. Areas in which costs can be reduced without compromising good health outcomes are examined.