Legacy Community Health and CareSource collaborate to serve Texas Medicaid members


Boram Kim


Houston-based Legacy Community Health announced on Tuesday a joint venture with CareSource, a nonprofit managed care organization based in Dayton, Ohio, to deliver care to Texas Medicaid members. 


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The 2 entities will form CareSource Bayou Health, a managed care organization (MCO). The MCO intends to participate in the procurement process when the Texas Health and Human Services Commission (HHSC) releases its request for proposals.

If given a contract, CareSource Bayou Health would serve State of Texas Access Reform (STAR) Program and Children’s Health Insurance Program (CHIP) members in Harris and Jefferson counties. 

“With CareSource Bayou Health, we have an opportunity to be an innovative, sustainable partner to the state that will make a lasting difference in the health and well-being of Texans while driving better quality and outcomes,” said Erhardt Preitauer, President and CEO of CareSource.

Legacy Community Health is the state’s largest federally qualified health center with more than 50 locations in the Texas Gulf Coast region.

“We are excited to announce this endeavor, which is intended to further our mission to drive healthy change in the community,” said Dr. Robert Hilliard, Jr., CEO of Legacy Community Health. “CareSource Bayou Health is the next logical step to providing quality comprehensive care while also improving the health outcomes of our community.”

CareSource administers one of the nation’s largest Medicaid managed care plans, covering 2 million people in 7 states including Georgia, Indiana, Kentucky, Ohio, and West Virginia. 

Officials expect the state to award contracts in late 2023 or early 2024.