Is this hospital capable of dealing with this disorder(Rapid breathing), or does my baby need to be transferred to another hospital that is more capable of dealing with difficult illnesses?

This depends on each hospital’s capabilities and pediatrician’s comfort level in treating sick newborns. Many smaller hospitals will attempt to take care of babies with excess fluid that just need additional oxygen and are stable or improving. If the baby’s condition is getting worse and breathing support is needed, that is generally done at larger hospitals that have special areas called neonatal intensive care units (NICUs) and neonatologists (newborn specialists).