The problem was to develop an organizational structure for the delivery of ambulatory care services at Hermann Hospital, Houston, Texas. Data for this paper was obtained from personal observation of the operation of the outpatient clinics at Hermann Hospital, unstructured interviews with staff members, a review of the literature, and a review of hospital correspondence on file pertaining to the operation of the outpatient clinics. In addition to the study conclusion, recommendations for further consideration included the following: (1) a study to examine optimum patient flow between the ambulatory service and the inpatient wards, and (2) a study to establish the optimum arrangement of clinic groupings within the modular structures.