“By bringing Community Care into the CareSource family, we combine the expertise of two mission-driven, nonprofit managed care organizations strengthening our capacity to innovate health care, improve outcomes and change lives,” said Erhardt Preitauer, president and CEO, CareSource. “CareSource will bring our strong business fundamentals, operational efficiency, scale, and complex care capabilities alongside Community Care’s extensive experience delivering high-quality, community-centered long-term care in Wisconsin to change the trajectory of health care for individuals with complex health needs.”
CareSource is currently in eight states, servicing mostly Medicaid managed care and Marketplace members, as well as covering some members who are dually eligible for Medicare and Medicaid, such as in Ohio and Georgia. Overall, its plans cover more than 2 million people.
CareSource is one of the largest employers in downtown Dayton, with approximately 1,800 employees.
Community Care serves adults across the state aged 55 and older, and 18 and older with physical, intellectual or developmental disabilities enrolled in Wisconsin’s three major long-term care programs; Family Care, Family Care Partnership and Program of All-Inclusive Care for the Elderly (PACE).
In addition to caring for members in the community, the organization operates three certified adult day and health centers in Milwaukee, Racine and Waukesha. The organization provides access to home and community-based services, care coordination and personal care assistance.
Over the past several years, the long-term care landscape has changed in Wisconsin, making it challenging for smaller, regional nonprofits like Community Care to operate financially, which has contributed to the recent trend in consolidation, according to Kenneth Munson, Community Care CEO.
“When considering the idea of merging, the executive leadership team and the board of directors felt it was critical that we partner with an organization, ideally a nonprofit, whose values aligned with ours and put members and employees first,” Munson said. “We found such a partner in CareSource, and this relationship will allow us to stay competitive, to continue providing excellent care to our members, and to expand our mission to serve more vulnerable people in Wisconsin.”
The transaction is the second for CareSource in Wisconsin. Earlier this year, CareSource announced plans to pursue an affiliation with insurance company Common Ground Healthcare Cooperative
Community Care and its more than 700 employees will remain in Wisconsin.
CareSource, a nonprofit, boasts $11.1 billion in annual revenue and $32 million in grants distributed by the CareSource Foundation.