Lisa Wynn, the chief regulator in Arizona medical practice since 2008, was fired on Saturday evening.
The Arizona Medical Board voted 5-4 to fire her.
Wynn, who officially served as the executive director for the Arizona Medical Board, took the brunt of the blame in a state report investigating possible shortcuts the board took to issue medical licenses.
The report, released on Wednesday by the Arizona Ombudsman-Citizens' Aide, found the state medical board's staff violated rules and statutes while awarding licenses and renewals to thousands of Arizona physicians.
According to the report, some of the key information Wynn and her staffed failed to properly address included doctors' education and illegal dispensations of prescription drugs. The ombudsman's report also alleged that Wynn's staff purposely violate state laws in order to speed up the licensing process.
The discoveries outlined in the 192-page investigation could mean thousands of physicians currently practicing medicine in Arizona are unqualified.
The Arizona Ombudsman-Citizens' Aide suggested the state auditor review medical license applications dating back to October 2011.
Wynn's attorney issued a statement following Saturday's sudden board meeting.
Lisa Wynn is profoundly disappointed with the board's decision. The Board never gave her the chance to present a rigorous defense to the allegations, declined to appoint her a lawyer to respond, and - with only 24 hours notice - narrowly reversed its prior unanimous decision to retain her, despite the absence of any new facts or allegations.
Lisa has consistently followed the board's directives, interpreted rules within the discretion afforded to her as executive director, and exercised that discretion in a manner that serves the best interest of the Arizona public.
The public should know that no one has been harmed by any licensing decision of the Board under her leadership, and she is not aware of any physician that is improperly licensed in Arizona.
Lisa would like to thank the many staff who expressed their support and confidence in her leadership and she wishes them well in their continued service of the State.
Since Wynn took the position of executive director in 2008, the board voted on multiple occasions to raise Wynn's salary to her most recent earnings of $132,000 a year.
However, board members stated that Wynn had "lost the trust public's trust" following the Ombudsman's report and it was time to part ways.
Wynn, a graduate of Arizona State University, had formerly held the position of Deputy Assistant Director of the Division of Licensing for the Arizona Department of Health Services.
Wynn's attorneys would not comment on any potential legal action against the state or other parties.
Copyright 2013 CBS 5 (KPHO Broadcasting Corporation). All rights reserved. The Associated Press contributed to this report.