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St. Paul's Hospital was founded during the time of Emperor Haile Selassie at a location now known as the regional bus terminal in the market place in Addis Ketema. It was established with the view of helping underserved populations who could not afford medical expenses. It was inaugurated in July 1947, equipped with 250 beds. The Hospital was first administered by the Ministry of Health, but hospital management was later transferred to a board of directors associated with what was then known as the Haile Selassie I Foundation. The Foundation itself was administered with finances obtained from the rent of hotel buildings and other local businesses. In 1968/69 a new hospital building was constructed in the Gulele area – its present site. It had the capacity of giving medical treatment to 400 in-patients and 300 out-patients. The German Evangelical Church covered 75 percent of the building construction cost while the rest was funded by welfare organizations within the count

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