CareSource Finalizes Acquisition of Commonwealth Care Alliance, Expanding Reach in Complex Care Management

Ohio-based CareSource has completed its acquisition of Commonwealth Care Alliance (CCA), a Massachusetts-based nonprofit organization specializing in health coverage and care delivery for individuals with complex needs. The merger, announced on Wednesday, marks a significant expansion for CareSource in the realm of managed care for dual-eligible beneficiaries and those with challenging health conditions.

Strategic Expansion and Service Continuity

CareSource, which currently serves over 2 million members across 13 states, will incorporate CCA's nearly 50,000 members in Massachusetts into its network. This acquisition brings together CareSource's extensive experience in Medicaid services with CCA's expertise in managing care for individuals dually eligible for Medicare and Medicaid.

Under the new ownership, CCA will continue to operate its Senior Care Options and One Care programs, ensuring service continuity for its members. The merger also allows CCA to leverage CareSource's resources and Medicaid expertise, potentially enhancing the quality of care provided to its beneficiaries.

Leadership Transition and Future Outlook

As part of the acquisition, CCA's President and CEO Chris Palmieri will be departing the organization in what has been described as a "long-planned transition." This change in leadership comes as CCA integrates into the larger CareSource structure.

Erhardt Preitauer, President and CEO of CareSource, expressed optimism about the merger, stating, "The CareSource and Commonwealth Care Alliance partnership ensures residents of Massachusetts with complex health needs continue to have access to high-quality health care." Preitauer emphasized the company's commitment to collaborating with CCA colleagues and building strong relationships with Massachusetts providers and patient advocacy groups.

Implications for Complex Care Management

The acquisition is poised to have significant implications for the management of complex care needs in Massachusetts. CCA's membership includes individuals with challenging behavioral health needs and those facing critical social determinants of health issues, such as food insecurity and housing instability.

CCA's home-based primary care program, which serves approximately 1,100 people in the Boston and Springfield areas, will now be part of CareSource's expanded offerings. This integration is expected to provide CCA members with access to more coordinated care and a stronger support network, leveraging the combined strengths of both organizations.

David Klein, the outgoing chairman of CCA's board of directors, highlighted the strategic importance of the partnership, noting, "CareSource is the ideal partner for the long-term sustainability of CCA, with decades of expertise in managing complex care and a unique member-centric focus."