A citywide neonatal program initiated in Jacksonville, Florida, in July 1978 through December 1988 had incorporated all six hospitals that provide obstetrical services in the metropolitan area. Admissions, occupancy rate, as well as patient care days served by the Regional Perinatal Intensive Care Center (RPICC) and the Level II nurseries have increased to capacity. More "step-down" care beds are made available by this program which has also proved to be cost effective. Areas of concern are discussed.