Introduction: Knowledge management technology is a key tool for facilitating and improving the quality of health care delivery in hospitals. However, the use and implementation of this technology is not an easy task. The aim of this study is to investigate a knowledge management technology implementation in Ethiopian hospitals, with a particular reference to Jimma University Specialized Hospital. Methodology: Information about challenges of knowledge management technology implementation was gathered using qualitative research methods, through conducting semi-structured interviews. Purposive sampling method was applied to select fifty-four participants from a well-defined population. Findings were first validated, according to published literature and research works, and then sorted into three main areas with recommended solutions, such as current usage of KM technology to enhance and improve decision-making, factors affecting implementation of KM technology Results: This study revealed that overall level of KM technology implementation in Ethiopia hospitals is still low. Conclusion: Implementation and use of KM technology with a view to improving the quality of hospital health services is needed. Thus, it suggested that hospital managers should make much more effort to develop a strategy and policy on the implementation and use of KM technology so that the hospital could improve the quality of healthcare services.