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State Takes Control Of Cardinal, Fires Board Of Directors

The North Carolina Department of Health and Human Services has temporarily taken control of Cardinal Innovations Healthcare and  fired Cardinal’s board of directors.

DHHS Secretary Mandy Cohen informed lawmakers of the decision in a letter. The letter noted what she called "exorbitant severance" of $3.8 million paid to CEO Richard Toppings and three other executives, and that the state can no longer rely on Cardinal’s board to get the agency in compliance with state regulations.

"DHHS has concluded that we can no longer rely on the Board and executive leadership at Cardinal Innovations to bring Cardinal into compliance with its legal requires," Cohen says in the letter.

Cardinal's board include three county commissioners - Mecklenburg County's George Dunlap, and commissioners from Halifax and Davidson counties.

DHHS Secretary Mandy Cohen's letter to lawmakers

This is a developing story. Check back for updates.