The purpose of this study is to examine the relationship between new organizational structure of local government and its’ public services.This issue is very important becouse of public demand of quality services that government and nongovernment organizations must give it in the current era. Yogyakarta local government, as representation of local government that has been done bureuacratic reformation in Indonesia, has been implemented the new its organizational structure. The research design of this study is survey research. It gives people who get license of their business at the public intstitution some questions about implementation of the new local government organizational structure and its services to get their perception. Academic findings of this research are: 1) implementation of the new organizational structure of the local government overall is “good” (avarage 3,75 of 1 – 5 of the Likert scale); 2) quality of public services of the hospital overall is also “good” (avarage 3,78 of 1 – 5 of the Likert scale)); and 3) correlation between implementation of the new organizational structure and the quality of public services is positive (0,669 in the Pearson Correlation). It means that more new organizational structure are implemented, more quality of public services are realized. Theoritical implication of the evidence is to support some research results that there is positive correlation between organizational structure and organizational performance, especially quality of public services. Practical implication that can be suggested for officials of the public organization is that implementation of the new organizational structure should be increased so that the quality of public services can also be increase. Limitation of the research is about research data, sample is limited. Suggestion for futher research is that researchers have to explain about why the public organization has relatively little access and assurance for public.