Protecting and Promoting School Choice

EFI Publications

K-12 Telehealth Firm Hits Funding Crisis

Hazel Health, a major provider of telehealth services for K-12 students’ mental and physical health, is facing an uncertain future due to recent layoffs and lost contracts with school districts. The company laid off 135 staff members in February, including clinicians, following an earlier round of cuts last fall. These challenges stem from drying up funding sources that once supported its operations in numerous U.S. school districts.

Key Points

  • Hazel Health endured two rounds of layoffs since last fall, including 135 staff in February.
  • The company lost several lucrative contracts with school districts, impacting its status as a leading K-12 telehealth provider.
  • Funding shortages are threatening the sustainability of telehealth services for students’ mental and physical health.

Implications for Educational Freedom

This situation highlights potential vulnerabilities in government-funded school health services, potentially empowering parents to advocate for more flexible options like Education Savings Accounts (ESAs) to access alternative telehealth providers. It underscores concerns about government overreach in education funding, pushing for greater school choice to ensure stable student support.

Source: K-12 Telehealth Provider Faces Uncertain Future as Funding Dries Up

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