This study evaluates the performance of district hospitals in Ethiopia by assessing clinical outcomes. A difference-in-differences (DiD) model was applied to assess changes in clinical outcomes before and after intervention implementation. The study analysed data from 10 randomly selected district hospitals over two years. In one district hospital, the DiD analysis showed a significant improvement in patient recovery rates by 25% compared to control hospitals (95% CI: 15-35%). The DiD model effectively demonstrated changes in clinical outcomes due to interventions. District health authorities should prioritise training and resources for these facilities to further enhance their performance. district hospitals, Ethiopia, difference-in-differences, clinical outcomes, intervention evaluation Treatment effect was estimated with $\text{logit}(p_i)=\beta_0+\beta^\top X_i$, and uncertainty reported using confidence-interval based inference.