This report describes Book Buddies, a volunteer-based outreach project of the San Francisco Public Library, whose goal is to provide reading services and to promote reading aloud to children and their families in San Francisco hospitals and pediatric clinics. The introduction chronicles the need for such a program; offers background information on the San Francisco Public Library's involvement with hospitals; describes steps taken to set up Book Buddies; and outlines six project objectives. Various facets of the program are then discussed: (1) the implementation of the project; (2) recruitment and training of volunteers to read and tell stories to hospitalized children; (3) the introduction of Dial-a-Story lines in Spanish and Cantonese; (4) the publication of a newsletter as a vehicle of communication among those involved in the project; (5) the evaluation of the program; and (6) the continuation of funding beyond the grant period. Recommendations for setting up similar programs, particularly for other libraries and communities that wish to commit themselves to serving the needs of hospitalized children and their families, conclude the report. The appendixes, which make up the major part of this document, contain sample materials used by the project, including copies of the newsletter, bibliographies, correspondence, forms for evaluating volunteer training, and the "Book Buddies Volunteer Handbook." (CGD)