DHHS has released two documents related to our investigation of Cardinal Innovations. First, as required by state law, DHHS Office of Internal Audit has conducted a six-month Follow-Up Assessment based on the Office of State Audit report that was released in May 2017. Second, DHHS Office of Internal Audit has provided an additional interim report to DHHS leadership associated with a site visit it conducted at Cardinal Innovations on October 30.
Mental Health News
Statement from the N.C. Department of Health and Human Services on its audit of Cardinal Innovations Healthcare Solutions:
After the Office of the State Auditor found unreasonable spending by Cardinal Innovations Healthcare Solutions, DHHS sent auditors to conduct a detailed examination and determined that in addition to the excessive salary for the CEO, several employees have severance allowances that may stretch to 36 months. This is excessive and raises concerns about the entity's solvency and ability to continue to provide services in the event of a significant change in its leadership team. Cardinal should immediately bring its salary/compensation package for its CEO in line with the other LME/MCOs, and shed its excessive severance offerings. DHHS will continue to monitor Cardinal's performance.
DHHS has established a Payers' Council to bring together health care payers across the state to partner on benefit design, member services and pharmacy policies to reduce opioid misuse and overdose.
Statement from N.C. Department of Health and Human Services Secretary Mandy Cohen, M.D., about status of mental health, substance use and developmental disabilities services to residents of Nash County:
The North Carolina Department of Health and Human Services is strengthening its contracts by seeking improved outcomes from the organizations that manage behavioral health care services supported with Medicaid and state mental health funds.
The new beds will help reduce travel distances to inpatient beds and decrease wait times for individuals in emergency departments who need inpatient behavioral health care. At least half of the beds will serve people who are unable to pay for care, or have Medicaid, Medicare, or TRICARE.
North Carolina is a recipient of more than $31 million to address the opioid crisis through the 21st Century Cures Act, State Targeted Response to the Opioid Crisis Grants.