The Arc of NC issues a new statement regarding Cardinal Innovations

Posted by The Arc of North Carolina


November 28, 2017

On November 27, the North Carolina Department of Health and Human Services announced that it has taken temporary control of Cardinal Innovations and dismissed their current board of directors.

The Arc of North Carolina applauds the efforts of the North Carolina Department of Health and Human Services (NC DHHS) and the North Carolina General Assembly to ensure that Cardinal Innovations, as well as any organization serving the needs of individuals with intellectual and developmental disabilities (I/DD), is held accountable. We also want to acknowledge the Cardinal staff who are working hard each day to help ensure many North Carolinians with I/DD receive the services they need.

The average cost of a Medicaid Innovations waiver is approximately $65,000. Waiver services support individuals with I/DD and allow them to live in our communities. Cardinal’s former CEO, Richard Toppings received a severance payout of $1.7 million that could potentially provide Innovations waiver services for 26 people with I/DD.

Cardinal’s total payout of $3.8 million to the top executives who have recently resigned could potentially provide 58 individuals with Innovations waiver services.  The Arc of North Carolina is aware of many people with I/DD who are in critical need of services today.

Cardinal Innovations has wasted valuable and limited resources that could have been used to better serve people with I/DD, mental health concerns and substance use issues. These payouts to Cardinal executives come at the expense of some of the most vulnerable individuals in our state.

We look forward to working with the North Carolina General Assembly, the NC DHHS, LME-MCOs and all agencies and organizations tasked with providing funds and support, to ensure that individuals with disabilities with whom we work will continue to receive the services they need. This type of blatant misuse of funds must not continue, especially when thousands of people with I/DD wait for the services they need.