Uganda's district hospitals play a critical role in healthcare delivery across the country, yet their performance and efficiency are not well understood. A mixed-methods approach incorporating quantitative econometric methods such as fixed effects models to analyse expenditure patterns and service outcomes. Panel data revealed that average annual expenditures per patient ranged from $50 to $150, with varying efficiency in diagnostic services across districts. The study suggests potential areas for cost-saving interventions without compromising quality of care. Targeted training programmes and resource allocation strategies should be implemented based on the findings.