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Background: Antiretroviral treatment (ART) service scaling up has been practiced in the Ethiopia since 2006. Regardless of increasing number of primary health care centers providing the service, the existing hospitals are still overcrowded with ART service seeking patients may be because of the common belief that treatment outcome is better for hospital patients than those treated at the primary health centers. However, documented evidence comparing the treatment outcome for the two categories of health facilities is scarce in the study setting. The purpose of the current study was to compare major treatment outcomes among new patients treated at the two health facility categories. Method: Retrospective cohort study was implemented using secondary data from medical records collected between October 2010 and January 2014 in the selected health facilities. All patients (1895) who started the treatment in the facilities during the period were included in the study. Univariate analyses were made using descriptive methods such as frequency distributions and measures of central tendency. Bivariate and multivariate analyses were made using Kaplan Meier and Cox regression models respectively to compare the mean survival time between the two facility categories. P-value less than 0.05 was considered as statistically significant. Results: A total of 1895 patient records were followed for 27,990 person-months. Risks of unwanted treatment outcomes (death and lose-to-follow-up) were the same for both categories of patients. The median survival probability was similar to the facility categories (P-value = 0.11). Baseline performance scale III/IV (AHR, 2.4; 95% CI: 2.0, 3.0), baseline WHO clinical stages III/IV (AHR, 2.8; 95% CI: 2.3, 3.4), and low adherence (<95%) to ART drugs (AHR, 3.4; 95% CI: 2.8, 5.2) were the independent predictors of the unwanted treatment outcomes. Conclusion: Antiretroviral treatment service delivery at primary health care facilities did not compromise the treatment outcomes among adult ART naïve patients. This implies that, ART services decentralization can result in acceptable treatment outcome in less developed settings. Therefore, treatment requiring patients should be encouraged to start the treatment in either of the health facilities as early as possible. [ABSTRACT FROM AUTHOR]