Forty-nine percent of the participants were black and 40 percent were Hispanic. Custody at discharge was to mothers (38 percent), other family members (25 percent), or agency foster care (36 percent). Placement outside the family was greater when mothers had prior child welfare records, in black families, when the mother had received no prenatal care, and when mothers were younger at their first delivery or older at the birth of the current child. Denial of custody to the mothers was higher with prior child welfare involvement, in blacks, and when the mother did not live in her own home. The findings were controlled for the number of children, the child's sex, and birth weight. Findings suggest the need to reexamine current policies and practices, because earlier involvement with child welfare authorities, race, and other factors predict the continuing separation of mothers and children at newborn discharge. Tables and 20 references (Author abstract modified)