Childcare Landscape Study - Flipbook - Page 115
Davidson County Child Care Landscape Study Results
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Table 3 compares the monthly cost estimates for both family and group home-based child
care programs to Tennessee’s current child care certificate reimbursement rates for homebased child care programs in greater Davidson County. Tennessee child care certificate
reimbursement rates underpay the cost of high-quality home-based child care for both
family and group home-based child care programs by as much as $1,309 monthly per child.
Tennessee reimburses family home-based providers at a lower rate than group home-based
providers, despite the higher estimated costs associated with family home-based care.
Family home-based care is estimated to be more expensive to provide because the costs are
divided among fewer children.
Of the 14 home-based child care programs that responded to the Child Care Provider
Survey, 12 reported that their programs accept children who use certificates, indicating that
many home-based programs may rely on certificates as a component of their revenue.
The gap between market prices and certificate reimbursement rates and the estimated true
cost of high-quality care indicates that child care programs are not receiving sufficient
resources to sustainably deliver high-quality care, likely presenting challenges for these
small businesses, including keeping educator wages low.
Table 3: Comparison of Monthly Per Child High-Quality Home-Based Care Costs and Certificate
Reimbursement Rates
Program
Type
Family
Home-Based
Program
Group
Home-Based
Program
Child Age
Estimated
Monthly Per Child
Cost of HighQuality Care
Infant
Toddler
$2,158
Preschool
Infant
Toddler
Preschool
$1,669
Current
Monthly
Reimbursement
Rate
Potential Loss
to Program
$1,040
$1,118
$936
$1,222
$849
$1,309
$1,118
$551
$1,040
$629
$958
$711
Source: 2025 Davidson County Child Care Cost Estimation Model. The Prenatal-to-3 Policy Impact Center, 2025. Tennessee
Department of Human Services, 2025.
Prenatal-to-3 Policy Impact Center 2026
www.pn3policy.org
