Latest news with #forprofit
CTV News
21-05-2025
- Business
- CTV News
‘Devastating': Federal cap on funded for-profit child-care spaces has Alberta providers concerned
Some for-profit child-care providers say their livelihoods are at stake as the federal government caps how many of them are eligible for funding.
CTV News
21-05-2025
- Business
- CTV News
Child-care operator wary of future amid funding eligibility changes
Alberta could run out of federally funded for-profit child-care spaces by this summer and, in anticipation, says it is limiting which new spaces receive the remaining dollars. Industry members were told this on Thursday via a letter signed by Jobs, Economy and Trade Minister Matt Jones, who would be switched in a cabinet shuffle the next day. Under the Canada-Alberta Canada-Wide Early Learning and Child Care Agreement (CACWELCC), which the province signed in November 2021 and is set to expire on March 31, 2026, a cap of 26,200 child-care spaces are eligible for federal funding. In the letter, Jones said Alberta's requests for more flexibility have been denied, leaving the provincial government with the 'difficult' decision about how to 'best use' the remaining funding. Effective May 15, affordability funding will be given first to existing for-profit programs that are creating space to meet a proven demand, as well as new private spaces in Grande Prairie, Red Deer, Lethbridge, Fort McMurray and Canmore/Banff, where there are long waitlists. The operators must be in the final stage of the licensing process and open on or before Sept. 30, unless they have a different timeline outlined in a Space Creation Grant Agreement with the province. The change is necessary 'to address the immediate pressure caused by the federal cap,' Jones' letter read. But an operator who planned to open a second daycare this fall says it jeopardizes quality care for families who have been waiting and the livelihoods of those who invested in starting a new business. 'What can you say to parents who are expecting affordable care, but now we can't provide it?' asked Rhesa Palaypay, one of the founders of Trinity Early Learning Academy. Palaypay plans to still open the new location in St. Albert, but isn't yet sure how she is going to make that happen. She estimated she has invested $750,000 since January 2024 into the new business, which she said she started because her first facility, Klarvatten Daycare, couldn't keep up with demand. 'It is quite an investment and a lot of risk for us – and not only me. To all child-care operators.' The chair of the Alberta chapter of the Association of Childcare Entrepreneurs says this latest development only makes the rollout of the provincial-federal program a larger mess. She called the program's design around space quotas and targets, rather than program quality and operator support, a fatal flaw. 'It makes it really hard to even want to be in this space. It's expensive, it's risky, and your partner in it … the federal government, the provincial government, nobody communicates with each other,' Krystal Churcher told CTV News Edmonton on Wednesday. 'I think that we're going to see a disaster in our child-care system over the next few years, where if we don't correct it now, we're going to have child care that is really declining in quality (and) we're going to have children that are put in situations where there's risk because the operators are brand new to this the field, and there's not enough support.' Alberta's new education and childcare minister, Demetrios Nicolaides, on Wednesday reiterated the province needs to address the pressure caused by the federal cap, but said he'd be gathering feedback. 'I've been minister of childcare for maybe about three, four days, so one of the first things that I'll be doing very shortly here is reaching out to many of those operators, advocacy organizations, umbrella groups, and chatting with them in a little more detail to try and get the best possible understanding of the pain points, challenges, concerns that we can work together to address them,' Nicolaides told reporters. The province says licensed for-profit programs that don't receive affordability funding can apply for wage top-up, professional development, and other kinds of funding for certified early childhood educators from the Alberta government. New for-profit spaces that don't meet this criteria won't be eligible and parents who choose an ineligible program won't see their fees reduced. The change does not affect the non-profit program stream, nor the process and criteria for licensing. It also does not affect existing programs with an Affordability Grant or Space Creation Grant. Alberta has not yet signed onto an extension of the CACWELCC. Nicolaides said he wanted to have more robust discussions about Alberta's needs during the renegotiation. 'I would suggest to operators, to parents, to the ministry, let's not worry necessarily about reworking the program we're in right now. We're stuck here until March. Let's make sure that we're actually engaging with stakeholders and creating a really solid program and plan for April 1, because people are making business decisions right now,' Churcher said. With files from CTV News Edmonton's Chelan Skulski
Forbes
07-05-2025
- Business
- Forbes
A Silent Crisis Threatening American Healthcare: The Deterioration Not-For-Profit Health Plans
Non-profit health plans pride themselves on putting patients before profits. Will they still be ... More around in a few years? getty Walk into any boardroom of a nonprofit, community-based health plan in America, and you will encounter smart, mission-driven leaders trying to balance their books while staying true to their values. You'll hear talk of quality metrics, community outreach, and Medicare Star Ratings. But beneath the surface of earnest mission statements and polished annual reports lies one of the least discussed yet most urgent crises in American healthcare: the deteriorating financial health of nonprofit regional health plans. These organizations — many of which were created to serve Medicaid and Medicare populations with local knowledge and deep community ties — are facing a slow bleed. And we're not talking about fringe players. Some of these plans have billions in revenue and decades of experience. Yet they're increasingly vulnerable in a landscape dominated by behemoth for-profit insurers and a new generation of venture-backed startups that are aggressive, well-capitalized, and built to scale. Let's unpack why this is happening. For-profit plans — and their smaller, well-funded startup cousins — are playing a different game. Backed by Wall Street and Silicon Valley, they can afford to invest in market expansion, customer acquisition, and technology that improves member experience and operational efficiency. Nonprofit plans, by contrast, often operate under strict reserve requirements, regulatory constraints, and cultural norms that prioritize prudence over growth. The result? A capital asymmetry that's becoming existential. While many nonprofit plans generate billions in revenue, they're still dwarfed by national players who operate across dozens of states and serve tens of millions of members. These scale advantages translate into better vendor contracts, more efficient back-office operations, and the ability to spread fixed costs across larger member pools. For small plans, the cost to serve each member is inherently higher — and increasingly unsustainable. There's a reason venture-backed startups are led by entrepreneurs and former operators, not actuaries and compliance officers. Too often, nonprofit plans are hamstrung by excessive caution and bureaucratic governance structures. Innovation is seen as a risk rather than a necessity. In an era when consumer expectations, regulatory frameworks, and clinical models are evolving rapidly, playing it safe is no longer a strategy. It's a liability. 4. Thin Margins and Actuarial Vulnerability The health insurance business is, at its core, about pricing risk. Larger companies can weather a bad year or two — they have the reserves and diversified portfolios to ride out storms. Smaller nonprofits don't have that luxury. One mispriced product, one year of unexpected utilization spikes, and they're in the red. Many simply don't have the financial cushion to recover. Health plans don't operate in a vacuum. Their ability to negotiate and manage care depends heavily on their provider relationships. As hospitals and physician groups consolidate into massive integrated delivery networks, they gain the upper hand. National insurers can offer access to millions of members across regions — a leverage point smaller plans can't match. What used to be close, collaborative local partnerships are now strained, uneven negotiations. The Path Forward: Reinvention, Not Retrenchment Despite these challenges, I believe there is a future for community-based nonprofit health plans — but only if they are willing to reimagine their role and embrace structural change. Here's where the opportunity lies: 1. Lean Into Small Size as a Strength Smaller plans are inherently closer to their members. They can be more nimble in customizing care models, engaging community-based organizations, and addressing social determinants of health in ways that national players cannot. Authenticity, local trust, and relationships matter — and these are advantages that cannot be bought or scaled overnight. They must be protected, but also actively leveraged. 2. Embrace Strategic Partnerships No plan can do everything alone. Whether it's partnering with technology firms, joining purchasing alliances, or outsourcing non-core functions, nonprofit plans need to get smarter about what they build versus what they borrow. Collaborations that preserve mission while expanding capability are not a sign of weakness; they're a sign of maturity. Regional non-profit health plans can be the perfect partners for artificial intelligence firms who can help level the competitive playing field. 3. Consider Consolidation — Wisely In some cases, the best way to preserve a mission is to merge with a like-minded peer. Consolidation doesn't have to mean selling out to a national for-profit. It can mean coming together with another nonprofit to achieve scale, share administrative infrastructure, and enhance negotiating power with providers. But this requires bold leadership and a willingness to prioritize the long-term mission over short-term pride. Final Thoughts The nonprofit health plan sector is at a crossroads. The status quo is not tenable — and survival will not be granted to those who simply wait it out. It will favor the bold, the collaborative, and the adaptive. As someone who has had the privilege of leading both national and regional organizations, I believe deeply in the importance of these local institutions. They are often the conscience of the healthcare system — mission-driven, member-focused, and committed to equity. But good intentions don't balance budgets. It's time to get serious about structural transformation, or risk losing the very organizations our most vulnerable communities depend on.
Bloomberg
06-05-2025
- Business
- Bloomberg
OpenAI's Scaled-Back Corporate Overhaul Is Not A Done Deal
OpenAI's concession on its for-profit conversion may not be enough to win over some critics. But first… Three things to know:
