I don't wash my babies after they're born, but rub the vernix in instead. They don't get a bath their whole hospital visit. Like Nadir, I would wonder why the baby was kept from mom for 2 hours. Even after both of my csections, my babies made it to my arms very quickly.
Perhaps we're missing the particulars, like a medical problem with baby. I have heard of some pretty backward practices in hospitals in the baby department though. Nothing would surprise me.