Following a damning audit report, senior members of the Betsi Cadwaladr Health Board claim that the Welsh government forced them to resign.
The board will go back under special measures, which will give the board more direct authority, according to health minister Eluned Morgan.
However, ex-members of the independent non-executive board claim that they are "gravely concerned" with the response.
They claimed that they had expressed their worries to the Welsh government at various levels.
The chair, vice chair, and independent members of the Board "have agreed they will step aside," the Welsh government stated.
The organization will continue to rebuild its services in the wake of the pandemic, it said, and "new independent members will be appointed to the Board to lead the organization.".
A board of independent and executive directors oversees Betsi Cadwaladr.
The executive team of the board, according to Auditor General Adrian Crompton's allegations last week, is "dysfunctional.".
According to Mr. Crompton's letter, independent board members had begun to lose faith in the executive team, which had resulted in instances of "challenging public scrutiny of the executive.".
Some people considered that to be "hostile and inappropriate" behavior.
"We are writing to express our sincere concerns about the future of health services in north Wales following this morning's meeting with the Minister when we were left with no choice but to resign as Independent Members with immediate effect," the independent board members wrote in a letter to politicians. .
"We have no faith in the Welsh government's understanding of the circumstances. ".
"I have serious concerns about the health board's performance and I haven't seen the improvement in services I expect for the people of north Wales," said Eluned Morgan, minister of health and social services.
"I have therefore made the decision to act to correct this.