Press Releases

The N.C. Department of Health and Human Services today announced that the newly appointed board for Cardinal Innovations will meet to hold its first official board meeting this weekend. The new board will convene on Friday evening, Jan. 26, for another training session and will come into session for its first official board meeting on Saturday, Jan. 27. At this board meeting, DHHS intends to transition leadership and governance of the organization to the new board and the Cardinal Innovations executive leadership team.

Governor Roy Cooper today announced the next wave of funding to combat the opioid crisis from the 21st Century Cures Act/State Targeted Response to the Opioid Crisis Grant that North Carolina received in May 2017. Since May, 3,200 individuals have benefited from these programs, and the funds announced today are expected to treat an additional 3,300 North Carolinians with an opioid use disorder.

Since arriving on site on Nov. 27, DHHS staff discovered documents that raise serious concerns about proposed financial activities by former board leadership and former CEO. Based on this information, DHHS filed and was granted a temporary restraining order in Mecklenburg County to ensure that former board members and the former CEO have no access to Cardinal's funds. DHHS has taken a variety of administrative actions related to the financial management of the organization; in addition to those activities we are pursuing this litigation out of an abundance of caution in the protection of taxpayer dollars.

Effective immediately, the N.C Department of Health and Human Services has temporarily assumed leadership of Cardinal Innovations, an LME-MCO authorized under state law to provide essential behavioral services using public funds.

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.

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.

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.