This study was carried out to assess the practices of public property disposal and management in public health service providing institutions of Ethiopia in the case of selected public hospitals in Addis Ababa city administration. Specifically to assess the practices of public property disposal management in the selected hospitals, the techniques used by the institution to disposing of unused properties, to identify challenges, if any that hinder property disposal and management practices, and the impacts of non-useful properties on the property management practices in the institution. To address this, both primary and secondary sources of data were used. As a primary data source, observation, interview, and questionnaires were used. The data was collected through unstructured questionnaires distributed to 112 purposively selected respondents, and a semi-structured interview with eight interviewees selected from concerned departments and officials. For secondary data, data were collected from different sources. Then, collected data were arranged, coded, entered into computer software, and analyzed using the package (SPSS) version-26. The key findings are lack of clear disposal methods and guidelines, lack of disposal plan to perform the disposal activities, institutional leaders, employees, and other concerned bodies give less attention to property disposal and management activities, weak administration and management system, lack of skilled, knowledgeable and experienced manpower, computerized modern data management system, proper code encryption for a public fixed asset. As a result, surplus, obsolete, and other scrap materials, create additional workload to the employees, affect the aesthetics value of the institution compound, environment, human health, limit efficiency, and effectiveness, and create unnecessary cost.rnBased on the study findings, it recommended departments, (i), using appropriate disposal methods (ii) use annual disposal plan to carry out disposal activities properly (iii) assigning skilled and experienced professionals (iv) the institution managers and other concerned bodies should give attention to disposal activities to secure value for money, dispose no longer serviceable properties on time and make an immediate decision (v) creating accountability culture are very important to minimize the existing poor property disposal and management practices and helps to provide effective service.