Low income developing countries have started reforming their health care deliveries and healthrncare financing systems. One of the components of health care financing reforms is cost –rnrecovery mechanism. A Bamako Initiative Revolving Drug Fund system is a cost-recoveryrnmechanism which has been adopted by many developing countries. Ethiopia is one of the lowrnincome Sub-Saharan African countries which have adopted BI RDF system of cost-recoveryrnmechanism to improve its health care financing which is crucial in improving health servicerndelivery. In West Shoa Zone five special pharmacies were established in five health facilities torngenerate more revenue to finance health care service deliveries.rnA cross-sectional health facility based assessment was conducted from January 2006 to Marchrn2006 in West Shoa to assess the organizational management of the special pharmacy schemes,rnthe drugs and supplies management in the special pharmacies, the financial contribution of thernrevenue of the special pharmacies to the other health programs in the health facilities and thernperceptions of the health professional about the contribution of the special pharmacies to thernhealth facilities.rnWhat was found out from the assessment was poor organizational management system with norncomprehensive activity, planning, organizing, executing and controlling. There were poorrnfinancial managements in all facilities and there were no financial statements, proper auditingrnand documentations. There were also very poor drugs and supplies management system andrnexcept in one health facility (Holota health center) there were no impressive contributions inrnhealth care financing. Community participations which are very determinant factors were notrnviirnthere and the involvement and participation of the health professionals in the health facilitiesrnwere very limited.rnTherefore, based on the results of the assessments it is concluded that in all facilities thernmanagement of the special pharmacies must be well structured to act according to the guidelinernto attain the goals of the SPs, timely supportive supervisions from concerned bodies,rncommunity participation should prevail and sound participation of the health professionals inrnthe activities of the special pharmacies is necessary.