Why is there such a range in c-section rates in NJ hospitals?

Whenever I mentioned to someone that XYZ hospital has a c-section rate of ##, I usually hear some excuse back. 

"Oh, well that hospital has a really good NICU.  They take all the high risk patients so they should have a higher c-section rate."

So let's examine that logic.  The hospitals that can handle the sickest babies and the most high risk pregnancies have Level III NICUs.  I think a general rule of thumb is that they work with babies beyond 24 weeks gestation. 

Hospitals highlighted in pink are Level III NICUs or "regional perinatal centers.
  Hospitals highlighted in orange are intensive community perinatal centers which, I believe, is pretty close to a Level III NICU/

	% c-section
Capital Health System at Mercer	28
Cooper Hospital/University Medical Center	27.3
Englewood Hospital and Medical Center	33.4
Hackensack University Medical Center	47.6
Jersey City Medical Center	37.7
Jersey Shore Medical Center	38.6
Kennedy Memorial Hospitals-University Medical Center	36.0
Monmouth Medical Center	28.2
Morristown Memorial Hospital	37.3
Newark Beth Israel Medical Center	36.5
Our Lady of Lourdes Medical Center	32.4
Overlook Hospital	38.4
Robert Wood Johnson University Hospital	35.8
Saint Barnabas Medical Center	44.2
Saint Peter's University Hospital	37.8
St. Joseph's Hospital and Medical Center	43.4
The Valley Hospital	44.4
UMDNJ-University Hospital	34.3
Virtua-West Jersey Hospital Voorhees	41.4
AVG	37.0

On the other hand, a Level I NICU basically only handles full term healthy babies.  The following hospitals highlighted in blue offer just basic newborn care.

	% c-section
Bayonne Medical Center	46.6
Burdette Tomlin Memorial Hospital, Inc.	34.3
Christ Hospital	45.3
Hackettstown Community Hospital	27.4
South Jersey Hospital-Elmer	33.1
Southern Ocean County Hospital	43.3
St. Joseph's Wayne Hospital	43.4
St. Mary's Hospital	33.7
The Memorial Hospital of Salem County	30.3
Warren Hospital	39.2
AVG	37.7

As you can see, there is really no difference in c-section rate.  They are both right around 37% (the state average).  So much for the NICU argument.