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Colorado dad and mom and academics might get 60 days’ discover about workers layoffs or enrollment modifications if their little one care facilities are acquired by chains backed by non-public fairness corporations.
That’s one of many provisions in a invoice that cleared its first legislative hurdle final week, with an 8-5 vote within the Home Well being and Human Companies committee.
The invoice, sponsored by three Democratic representatives, seeks new guardrails for little one care facilities backed by institutional buyers akin to non-public fairness or enterprise capital corporations. Consultants say such corporations goal to generate huge earnings for his or her buyers, usually on the expense of youngsters, households, and staff. Companies do that by slicing prices and charging charges.
The invoice, which was considerably watered down from its unique model, represents Colorado’s first foray into little one care rules targeted on for-profit little one care chains with institutional buyers. Different states, together with Massachusetts, Vermont, and New Jersey have lately taken comparable steps.
