CARY, N.C. -- The Department of Health and Human Services says they have found significant concerns with Baby and Co.

• Birthing center under investigation after incident of "potential concern"
• DHHS found problems with midwife supervision, training and medical oversight
• Baby and Co., located in Cary, stopped deliveries after three newborns died. 

The birthing center stopped deliveries after three newborns died.

The company voluntarily agreed to a review by the state, who now says they found problems involving midwife supervision, training and medical oversight.

Now, they're investigating another incident of "potential concern" involving a patient. The review is currently being shared with a number of committees who have authority over the center.

Lawmakers are currently considering legislation that would allow regulation of birthing centers in North Carolina.

"It frustrates me greatly because we as physicians or providers in the medical community are given trust by patients and by families and in my opinion, this was a violation of trust," said Rep. Greg Murphy, MD (R).

Baby and Co. released a statement in response to the DHHS report:

"While we thank DHHS for conducting their review of our Cary Center,  lack of familiarity with birth centers was evident in their report, resulting in significantly flawed findings.  We have responded to DHHS with a robust list of factual inaccuracies and misguided conclusions that create a distorted impression of the quality of our safety systems and the professionalism of our care providers. 

"We have taken recent events in our Cary center very seriously, and have conducted a series of internal and external reviews of highly qualified clinical teams including The Institute for Perinatal Quality Improvement and the Commission for the Accreditation of Birth Centers (CABC), whose standards the report cited.  All of our centers are fully accredited by the CABC and we have operated in good standing in states with birth center regulations.

"Overall, our model of care has a tremendous track record of success - delivering better outcomes for women with low-risk pregnancies than hospital-based care, with lower mortality and morbidity rates and significantly lower c-section, pre-term birth and NICU admission rates."