After a brief introduction delineating the scope of the case study, chapter 1 summarizes findings and conclusions about the costs and effectiveness of neonatal intensive care in the United States. Chapter 2 inventories the national supply of neonatal intensive care units and describes recent trends in use and costs. Chapter 3 reviews mortality and handicap rates and discusses the outlook for the three clinical problems that account for a majority of the deaths and poor outcomes among very low birthweight infants: respiratory distress syndrome, intraventricular hemorrhage, and retinopathy of prematurity. Problems in financing neonatal intensive care are reviewed in chapter 4. Special emphasis is placed on Medicaid policies and expenditures. In chapter 5, findings regarding unequal mortality risks in different types of hospitals are reviewed, and possible inequities in access to neonatal intensive care are considered. Also explored are ethical issues, and competitive and financial constraints on hospitals and physicians. Finally, chapter 6 analyzes the lifetime economic implications of neonatal intensive care for very low birthweight infants and for society in general. Seventeen tables of data supplement the text. A glossary of acronyms and terms is provided. About 200 references are cited. (RH)