http://kidshealth.org/en/parents/mol...tagiosum.html#

Well, there is a strong chance that the main contagious period has passed. I think I would lean to following the steps to prevent infection, but keep the child in care. Ensure his family understands they NEED to do everything to help prevent spread.

I would notify other parents that a child has this, give them a link to useful info to help ease concerns and very clearly state what you and the family are doing to keep it from spreading. It is noted to be safe to continue care in daycare and school and it can take 6-18months to actually clear this so it doesn't seem feasible to exclude form care unless you just terminate.