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Bunda DDH, as the name implies, was decided to have such status, on agreement between the government of Tanzania (through MoH) and the ELCT, Mbulu Diocese, then. It was inaugurated in 1992. The need to have/establish a DDH came about based on the fact that the District of Bunda, then, did not have a district hospital. After considerations, negotiations and later a compromise, the, then, ELCT - Mbulu Diocese teamed up with Norwegian Lutheran Mission to seek support from NORAD who agreed to construct the hospital with 80% of funds, while 20% donated by NLM. This agreement was, however, based on understanding that, the Government of Tanzania was to be responsible for all the recurrent budget for the hospital while the church - Mbulu Diocese - to be responsible for development budget. Later, the ownership of the hospital was transferred to ELCT - Diocese in Mara Region (DMR) after the establishment of the latter as a diocese. Local contribution at district level towards the project was provision of free land, access road, water rights from adjacent Balili Hills, water storage tanks and an airstrip, the latter of which is yet due for completion. BDDH is one of 20 hospitals owned by ELCT.

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