Project Return, a dropout recovery program to assist pregnant and parenting teenagers and parents of elementary school children to return to school, was first implemented in 1989-90, and by 1993-94 had expanded to serve 19 sites in New York City. The Babygram Hospital Outreach program, an outgrowth of Project Return, operated in 12 hospitals and health facilities to target pregnant and parenting teenagers at risk of dropping out. Both components used a case management approach, allocating an educational case manager to each site to recruit and counsel participants, coordinate educational alternatives, make referrals and placements, and track program participants. Evaluators from the New York City Board of Education's Office of Educational Research (OER) collected data on 278 program participants and referrals made along with pretest and posttest data on self-esteem and parenting skills from a smaller sample of participants. In addition, OER conducted a longitudinal study of Babygram clients. Data indicated that case managers were successful in meeting the program goal of identifying parents needing services and in recruiting them into the program and placing them. The longitudinal study indicated that 59% of Babygram participants graduated or were still enrolled. Because of the lack of pretest and posttest matches, it was not possible to document program effects on self-esteem, but it appeared that program participation was associated with higher levels of self confidence and parenting knowledge. Recommendations are made for program improvement. Four appendixes contain tables of data about dropouts and program referrals. (Contains 16 tables and 4 appendix tables.) (SLD)