Dayton-based CareSource acquires another company

The CareSource building located at First and Jefferson Streets in Dayton. MARSHALL GORBY\STAFF
Caption
The CareSource building located at First and Jefferson Streets in Dayton. MARSHALL GORBY\STAFF

Credit:

Credit:

CareSource has acquired a Pennsylvania-based company that serves agencies that work with people with intellectual and developmental disabilities and behavioral health challenges.

CareSource, a Dayton-based insurance company, said this is its first major acquisition and “marks another significant step forward in its current growth phase.”

ExploreCareSource doesn’t make cut in bid to join Oklahoma Medicaid

The business it bought is The Columbus Organization, which helps agencies with staffing and regulatory, certification and litigation issues. It is headquartered outside of Philadelphia and employs about 580.

The Columbus Organization was sold to CareSource by a private equity fund HealthEdge Investment Partners. Terms of the deal were not disclosed.

ExploreCareSource’s annual report shows member, revenue growth

CareSource CEO Erhardt Preitauer said in a statement about the acquisition that serving individuals with complex needs “is at the heart of our mission.”

“Acquiring a well-respected company like The Columbus Organization extends that commitment,” he said.

CareSource has been rapidly growing in recent years, winning major government contracts including re-winning its main contract with Ohio Department of Medicaid.

The insurer’s gross revenue was up to $11.2 billion in 2020, from $10.6 billion the year prior and $7 billion five years prior. CareSource said 9.7% of 2020 revenue went toward administration, which is up from 8.3% reported the year prior

About the Author

ajc.com