Background: This study evaluates resource allocation management in hospitals in Bauchi State, focusing on Federal Medical Centre (FMC) Azare and Primary Healthcare Centre (PHC) Azare. The research addresses significant disparities in resource allocation that affect healthcare service delivery and patient outcomes. Methods: Using a mixed-method approach, the study combines quantitative data analysis of financial records, resource allocation reports, and healthcare service delivery metrics with qualitative insights from interviews and focus group discussions. Data Envelopment Analysis (DEA) was utilized to measure the relative efficiency of the hospitals in converting inputs such as financial resources, staff, and infrastructure into healthcare services and outputs. Additionally, descriptive analysis was conducted using IBM SPSS version 27 to analyze 100 questionnaire responses and demographic data. Results: The findings reveal significant disparities between FMC Azare and PHC Azare, with FMC Azare benefiting from more adequate financial resources, human resources, medical supplies, and infrastructure. These disparities lead to differences in patient satisfaction, service delivery efficiency, patient outcomes, and waiting times. Conclusions: The study underscores the need for more equitable resource allocation to improve healthcare delivery and patient outcomes at under-resourced centers like PHC Azare. Recommendations for policy interventions include addressing resource allocation inequities, staffing solutions, supply chain improvements, and infrastructure development. These recommendations aim to enhance resource allocation management, thereby improving healthcare services in Bauchi State and providing insights applicable to similar contexts in Nigeria, Africa, and globally.