Dayton-based insurer CareSource, following regulatory approval, plans to acquire a new affiliate, Radiant Alliance, the company said on Thursday.
Radiant Alliance is a new nonprofit being formed by a partnership between Metta Healthcare, which is the parent company of Ohio’s Hospice and Pure Healthcare, along with United Church Homes.
Through Radiant Alliance, the nonprofits will address supportive care and housing needs for the aging population.
“For years, the industry has talked about the incredible benefits of bringing together the critical capabilities of housing, provider and payer to drive better life outcomes for members,” said Erhardt Preitauer, president and CEO of CareSource. “We are the first to actually do it.”
The partnership with CareSource will help Ohio’s Hospice serve more patients and more communities, said Ohio’s Hospice CEO Kent Anderson.
“In part because of the disruption caused by the pandemic, health care is undergoing transformational change,” said Kent Anderson, CEO of Ohio’s Hospice. “This partnership allows us to remain true to the origin of our mission during these transformative times, while ensuring our mission remains relevant to the communities we serve and the other health care providers we work with to serve the community.”
Ohio’s Hospice’s parent company Metta Healthcare, headquartered in Dayton, employs more than 1,400 staff members and serves more than 18,000 patients each year in 59 counties throughout Ohio by providing long-term direct health care for those with chronic illness or in need of end-of-life care.
Helping older adults age in place with the support and resources they need is also part of their vision, said Rev. Dr. Kenneth Daniel, president and CEO of United Church Homes.
“This collaboration will enable us to make a significant impact in helping more people age abundantly, the United Church Homes core mission. Together, we are committed to providing comprehensive and compassionate care that empowers older adults to live fulfilling lives wherever they call home,” Daniel said.
United Church Homes provides housing and services to older adults, serving nearly 7,000 residents in its more than 90 owned and managed market rate and affordable housing communities in 15 states and two Native American nations.
CareSource, a nonprofit, did not disclose the cost of the acquisition. The organizations already launched several innovative pilots, CareSource said in a news release, but would not go into further detail. A spokesperson for the company said they would be able to go into more detail about the pilots at a later date.
CareSource, which administers one of the nation’s largest Medicaid managed care plans, is one of the largest employers in the Dayton area, with about 3,000 employees here and about 4,500 total.
CareSource covers 2.3 million people in multiple states, including in Georgia, Indiana, Kentucky, Ohio, and West Virginia. It is also part of a team offering services in Arkansas for people with developmental disabilities. CareSource also serves Marketplace clients in North Carolina. CareSource also received a contract to serve Medicaid members in Mississippi, but they have not started serving members yet.
CareSource estimated a 2019 direct economic impact in the Dayton of $438.3 million, with an additional indirect impact of $175.7 million, according to its 2021 stakeholder report.
CareSource reported an $11.2 billion gross revenue in its 2021 stakeholder report, which was up from its 2019 gross revenue of $10.6 billion. The company’s 2021 stakeholder report said 9.7% of costs went to administrative costs, which was up from 8.3% in the 2020 stakeholder report. In 2019, the company also reported an operating margin of $82.1 million.