As the name applies, was decided to have such status, after an agreement between the government of Tanzania (through Ministry of Health and Social Welfare) and the ELCT, Mbulu Synod. It was inaugurated in 1992; the need to have/establish DDH was based on the fact that the District of Bunda had no district hospital.
After considerations, negotiations and later a compromise, then, ELCT – Mbulu Synod 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.
Later, the ownership of the hospital was transferred to ELCT – Diocese in Mara Region (DMR) after the establishment of the later 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 in the country.