DHHS Announces Official Board Meeting for New Cardinal Board

Published: Thursday, January 25th, 2018 @ 11:28 am
By: Stan Deatherage ( More Entries )

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Press Release:

    RALEIGH - 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.

    "I expect board members to take an active role in leading the ongoing cultural change that is needed at Cardinal," said DHHS Secretary Mandy Cohen. "I expect the board and leadership team of Cardinal Innovations to focus on the patients and consumers they serve, operate the organization in a transparent manner with a focus on accountability, and allocate resources in accordance with state and federal law."

    DHHS assumed responsibility for the governance and day-to-day operations of Cardinal on Nov. 27, 2017. The department rescinded approval of the former board of directors at Cardinal. This followed certain improper actions taken by the former board and former executive leadership, including but not limited to:

Mismanagement of public funds
Misrepresentation to the department of actions taken by the board
Payment of excessive and inappropriate severance to the former CEO, CMO, COO and CIO
Payment of excessive salary to the CEO
Failure to represent the interests of the citizens within its catchment area

    DHHS has been on site at Cardinal since November supervising the operations of the agency and working with interim leadership to develop a formal Corrective Action Plan to correct issues at Cardinal identified in recent audits and oversight activities. DHHS expects the new board to transmit this plan for corrective action to the department at its meeting this weekend.

    The new board that will assume leadership this weekend was appointed in December by County Commissioners in the counties served by Cardinal. This official board meeting follows prior training sessions that DHHS held for the new board to provide information on Cardinal, the new board's responsibilities and the department's expectations for Cardinal and its board.

    Saturday's board meeting will be held at 9 a.m. at 4025 University Parkway, Winston-Salem, NC 27106.

    NC Department of Health and Human Services

2001 Mail Service Center
Raleigh, NC 27699-2001
news@dhhs.nc.gov •(919) 855-4840

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