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Employees of Retreat Behavioral Health are grappling with sudden closures following the suicides of the company’s top executives. The rehab company, with locations in Florida, Pennsylvania, and Connecticut, has left workers and patients in a state of uncertainty.
Last week, the facility in Palm Beach, Florida, closed abruptly. Around 100 mental health and substance use patients were told to leave, with 30 having no place to go, according to employees who spoke with WPTV.
The shutdowns extended to Lancaster County, PA, and New Haven, CT, after the tragic deaths of CEO Peter Schorr and Chief Administrative Officer Scott Korogodsky. Schorr died by suicide at his home in Delray Beach, and days later, Korogodsky also took his own life, as confirmed by the Palm Beach County Medical Examiner’s Office.
Lissa Franklin, VP of Southeast Florida Recovery Advocates, told CBS12, “Most patients found safe and supportive discharge options, but it’s very sad. Retreat was a great program, treating everyone with compassion and kindness.”
Franklin noted that Retreat was one of the few facilities in the area that accepted Medicaid and VA health insurance.
Internal emails revealed that Korogodsky had promised staff they would be paid despite delays. Alexander Hoinsky, the CFO, admitted the company had been in financial trouble for at least a year. He expressed concerns when executives stopped responding to his calls, stating, “The company ran out of cash. Revenue dropped drastically, and costs were not adjusted.”
Palm Beach facility workers are still awaiting their final paychecks after being abruptly terminated. One nurse, who wished to remain anonymous, described chaotic scenes as patients fought and attempted to break into nurse stations for narcotics.
Hoinsky hopes employees will be compensated for their last three weeks of work. Besides financial woes, Schorr faced a lawsuit in January over a $50,000 property deposit and another suit in New York seeking over $5 million for a defaulted loan. Additionally, the Palm Beach County Tax Collector sued the facility for an unpaid $1,700 tax bill.
The company mourned Schorr’s passing on social media, acknowledging his dedication and compassion. Tributes for Korogodsky also poured in, remembering him as an “amazing person.”
The closures have left a significant impact on employees, patients, and the communities served by Retreat Behavioral Health.
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