This study demonstrates a significant effect of home-based neonatal care on mortality due to asphyxia. To deliver such an intervention, it is necessary to form a team of a semiskilled VHW with the TBA, so that each home delivery is attended not by a TBA alone but by two birth attendants. For resuscitating an asphyxiated baby in such setting, bag and mask appears to be more effective than tube and mask or mouth-to-mouth breathing, and more convenient to use. The estimated cost of bag and mask was $13 per averted death.