DHHS Statement on Audit of Cardinal Innovations Healthcare Solutions

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.