IMSS subrogated daycares face closure risk over contract disputes

The contracts for 630 subrogated daycares operated through the Mexican Social Security Institute (IMSS) are set to expire on December 31, 2026. Representatives from the National Working Group of Subrogated Daycares have warned that failure to renew these contracts could leave approximately 200,000 children without childcare services across the country.

Providers argue that the current reimbursement rates are insufficient to meet increasing operational demands. They noted a significant disparity in funding: while IMSS-operated daycares receive approximately 15,000 pesos per child monthly, subrogated private entities receive just over 6,000 pesos, which is roughly half of a minimum wage. This financial pressure has already led to the closure of at least five daycares in the State of Mexico, with an additional 20 potentially closing in the coming months.

In the western State of Mexico alone, an estimated 3,500 families could lose access to these services. The daycare associations have indicated they may resort to closures and mobilizations if their demands for adjusted quotas are not met before the contract expiration date.