The skin is too fragile to wear any sort of clothing right after birth. After a few days, they can wear flannel hospital gowns that open at both shoulders and one side. With only one side closed, the staff could leave open whatever they needed to. I made these for local hospitals, as many as I could stand to, until the person taking them to the hospitals "retired". I didn't take over the project, so haven't made any for a long time.
When the babies reach about 4 lbs., they can be dressed in the cute clothes while in the hospital. Big morale booster for parents and staff. But the smaller items are usually used for bereavement. At least, that's how it works in my area.
Nothing is wasted, and not a waste of time to make, either. So keep making whatever the hospital asks for!