The main aim of this paper is to derive a solution to the capacity problem faced by many perinatal networks in the United Kingdom. We propose a queueing model to determine the number of cots at all care units for any desired overflow and rejection probability in a neonatal unit. The model formulation is developed, being motivated by overflow models in telecommunication systems. Exact expressions for the overflow and rejection probabilities are derived. The model is then applied to a neonatal unit of a perinatal network in the UK.