Insurance laws are not based on how sensational a story is in a newspaper. You cannot bend the rules for one person because you will never be able to cross back over that line. That being said, this is a horrible story and I hope she recovers and can teach again. I would imagine her health insurance is provided by the state and also Disability Insurance. As far as having to use her sick days, nearly every employer would require this in order for Disability Insurance to kick in.
Did the Union ever address these dangerous parking situations for their members? If not, perhaps they should be held liable. Sue the Union.
By the way, my dad has been a public school teacher for over 30 years, so I am certainly not a teacher-hating neanderthal.