There is a growing health care demand in Africa and specifically Ethiopia is a concern for government and health organizations. Providing appropriate service and facilitation for patients increases service utilization by those who visit the hospital. Therefore, the main objective of the study is Identify the Service Delivery Quality of Public Health Institutions emphasis on employees and patients perceptions with satisfaction: The case of Ambo Hospitals and Health Centres in Ambo Town. To attain the objective of the study stratified random sampling techniques on the demand side of the patients and supply side of employees at the health institutions were employed. Furthermore, by using scientific sample size determination about 320 respondents were taken from the study area of Ambo Town related health institutions of which 235 of the respondents are patients while 85 are from the employee’s side of the health institutions. Both descriptive and inferential Statistics (Chi Square and Binary Logistic Regression Model) were used for the research. The data are analyzed by using SPSS Version 21. The result of the study reveals that 64.68 % of the respondents reported as there is no an adequate public health service delivery in the hospital and health centers of Ambo Town. From the result of the study we conclude as there is a significant statistical association between gender, educational level, occupational level, and frequency to visit the patients, your last visit, and support service after consultation, service execution, and family planning with the public health service delivery at 5% level of significance. The result also show that the more educated the patient, the better is the utilization of public health service delivery compared to those with below grade ten education status. The result of the study shows that those respondents who had a long stay in hospital were more satisfied than those who stay for very time ((AOR) = 4.54, 95% CI: 2.38, 8.65). It is recommended that, if the government and authorized body put great effort and attention in creating conducive situation so as to get better public health service delivery and facilitation for patients reach out to the hospital and health centers in Ambo Town.