Six of eight local health departments in North Carolina's Southwest Perinatal Region III participated in a PBMS demonstration project also involving the state health department, the Centers for Disease Control, and the School of Public Health of the University of North Carolina at Chapel Hill. In all six counties the problem of reducing prematurity and low birthweight was selected to test this innovation. Using standardized instruments, staff awareness of and concern for low birthweight problems and programs were measured, as was level of success of implementation of PBMS. Factor analysis of three rounds of Awareness and Concern responses produced three uncorrelated factors: awareness of low birthweight problems, awareness of low birthweight programs, and concern for low birthweight. The results suggest that the PBMS increased awareness of the problem and the program, and that the project succeeded in half of the counties, helped some counties achieve some goals, and provided some benefits to some counties. The implications for Total Quality Management are discussed.