Objective: This study aimed to assess the utilization of health services and associated factors among fee waiver beneficiaries in Dawunt district, Ethiopia, in 2020. Study design: A community-based cross-sectional study was used. Methods: Using an interviewer-administered questionnaire, data were collected from 550 randomly selected households. EpiData version 4.6 was used to enter data, and SPSS version 23 was used to analyze it. Multivariable logistic regression analysis was applied to identify the associated factors with health service utilization. Results: The overall health service utilization among fee waiver beneficiaries was 60.98% (95% confidence interval [CI]: 56.4–64.4%). Being an urban resident (adjusted odds ratio [AOR]: 3.2, 95% CI: 1.41–7.28), family size (AOR: 3.17, 95% CI: 1.49–6.75), perceived health status (AOR: 6.26, 95% CI: 3.76–10.41), travel time (AOR: 2.75, 95% CI: 1.25–6.06), perceived distance (AOR: 13.69, 95% CI: 5.22–35.91), and perceived medium (AOR: 3.07, 95% CI: 1.71–5.52) and cheap (AOR: 3.02, 95%CI: 1.43–6.36) transport costs were significantly associated with utilization of health services. Conclusions: This study revealed that the level of health service utilization among beneficiaries in the Dawunt district was 60.98%. Residence, family size, perceived health status, travel time to the nearest Health Facility (HF), perceived distance, and travel cost to reach the HFs were significantly associated with Health Services Utilization (HSU). Therefore, improving physical accessibility of health services and availability of necessary health services at an affordable cost will possibly result in better utilization of healthcare services.
