Abstract:Background: Indiscriminate waste disposal by many healthcare facilities pose serious health hazard to the inhabitants in general and people living around health care facilities in particular. Human scavengers collecting second hand objects for reselling could be a channel for speading disease causing organisms. In addition, burning of wastes in small size incinerator at a low temperature releases many toxic gases causing health effects for people living around the facilities. The objective of the study was to assess risk perception of people living around health facilities about healthcare wastes. Methodology: A cross sectional study was conducted on 438 people in the eastern part of Ethiopia, from August to November 2013. Samples were taken by proportionate allocation to the size of people living within one km radius of 25 health facilities. Questionnaire was administered by a face-to-face interview. Risk perception was classified using a three-point Likert scale from low to high risk. Data were analyzed using STATA software. Bivariate and multi-variable analyses were carried out to determine correlates of risk perception. Result: The magnitude of risk perception for sharp, infectious/pathological wastes and expired drugs was 87%, 93.6%, and 73.1%, respectively. Individuals from urban areas have about 3 times higher odds of increased perceived risk than from rural areas (AOR = 3.02, 95% CI: 1.08-4.32, P = 0.006). On the other hand, people living around the hospitals have 2.5 times higher odds of increased perceived risk than those people living near to health centers (AOR = 2.45, 95% CI : 0.19 -3.04, P = 0.000). Conclusion and recommendation: People involved in this study have high perceived risk for hazardous (infectious and sharp) wastes which might be due to indiscriminate discharges of wastes by the nearby health facilities. It is therefore advisable to dispose wastes in a proper manner in order to minimize public concern.