I think honesty is best in this situation. You should talk to her as a mom and tell her you realize that she can't keep child one there when she goes to school and financially you have to fill that full time space. See what she's thinking and how you can work together. You may be surprised. I kept my daughter at a daycare that was completely inconvenient because she was a good provider, I'd developed a relationship and I trusted her. You never know what she's thinking. But as far as PT care goes. Maybe post to see if you can find another PT and do alternate days? If she's that great and you really want to keep her.