This paper presents a heuristic solution procedure for the quadratic assignment problem, ranking procedure, which can handle the case where not all of the facilities have the same size of area. The ranking procedure is found more efficient than two other existing heuristic procedures from results of computational experience. Based on the out-patients flow pattern and the procedure developed, an improved layout of the three existing general hospitals is developed with the objective of minimizing the total distance travelled by patients in the central and the out-patient clinic