My reply was long so....
Baby hats at the hospital near me were rejected by the nurses due to being too small. I have to take those to a hospital with a NICU. Size of a walnut is appreciated by the NICU or anything larger. You may want to check with the local hospital for their needs. Ladies may not have an accurate picture of what the nurses actually need for the little ones.
Our hospital loves the blankets & hats. I took red, white & blue blankets & hats from our group yesterday for 4th of July! Persevere, it is worth it! The babies and their families as well as the nurses know God's love when you take these gifts from the heart. You are doing HIS work. Don't be discouraged!!! Go, girl!!