CareSource Completes Acquisition of Commonwealth Care Alliance
Deal News | Apr 09, 2025 | Globenewswire
CareSource, a nonprofit managed care organization, has finalized the acquisition of Commonwealth Care Alliance (CCA), another nonprofit focused on health care services for individuals with significant needs. This strategic alliance allows CCA to continue its current operations under the CareSource brand while benefiting from enhanced capabilities and resources. CareSource's CEO emphasized the importance of this partnership in maintaining high-quality care for Massachusetts residents. CCA is known for its specialized programs and has been a pioneer in advocating for those with complex health needs, providing services to those who face social health barriers like housing instability and food insecurity. The merger aims to bolster support and services, ensuring continuity for patients and aligning the workforce within the CareSource framework. Meanwhile, CCA CEO Chris Palmieri will be stepping down as planned.
Sectors
- Healthcare
- Managed Care
- Nonprofit Organizations
Geography
- United States – Both CareSource, based in Ohio, and Commonwealth Care Alliance, headquartered in Massachusetts, operate within the United States. The transaction affects healthcare service provision specifically in Massachusetts.
- Massachusetts – The primary focus and impact of this acquisition are on healthcare services provided to the residents of Massachusetts, as CCA operates extensively within this state.
Industry
- Healthcare – The article discusses the acquisition of a healthcare services organization, Commonwealth Care Alliance, by another in the same industry, CareSource, highlighting their roles in providing innovative health plans and care delivery for individuals with significant needs.
- Managed Care – CareSource and CCA operate in the managed care sector, focusing on coordinated healthcare delivery aided by shared resources and innovations.
- Nonprofit Organizations – Both parties involved, CareSource and Commonwealth Care Alliance, are nonprofit organizations working towards health service improvements for underprivileged groups.
Financials
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| CareSource | Bidding Company | Company | A nonprofit managed care organization that has acquired Commonwealth Care Alliance to enhance service capabilities in Massachusetts. |
| Commonwealth Care Alliance (CCA) | Target Company | Company | A nonprofit healthcare services organization focused on integrated and person-centered care for individuals with significant needs in Massachusetts. |
| Erhardt Preitauer | Executive | Person | President and CEO of CareSource, leading the company through its acquisition strategy and mission-driven expansion in Massachusetts. |
| David Klein | Outgoing Chairman | Person | Outgoing chairman of CCA's board of directors and a proponent of the partnership with CareSource for long-term sustainability. |
| Chris Palmieri | Outgoing CEO | Person | Former President & CEO of Commonwealth Care Alliance, stepping down following the acquisition as part of a planned transition. |
| Massachusetts Executive Office of Health and Human Services | Government | Government | Supported the acquisition process, emphasizing improved healthcare outcomes for residents with complex needs. |
| Governor Healey | Government | Person | Governor of Massachusetts, recognized for backing the acquisition process ensuring public health benefits. |