N.C. audit: Managed care organization misspent Medicaid funds

N.C. audit: Managed care organization misspent Medicaid funds

North Carolina’s largest managed care organization for mental health, developmental disabilities and substance abuse services misused federal and state Medicaid funds by overpaying its chief executive and through excessive spending on corporate retreats and other questionable expenses, according to a state audit released Thursday. Cardinal Innovations Healthcare Solutions, which serves more than 85,000 people in 20 counties, denied any wrongdoing in a 22-page response to the audit.

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