Employees at Retreat Behavioral Health have been left without answers after a number of facilities closed down after the sudden suicide of two top executives, according to the Daily Mail.
The rehabilitation company has locations in Connecticut, Florida, and Philadelphia, but they suddenly closed down their facility in Palm Beach, Florida, last week. Employees were reportedly told that about 100 mental health and substance use patients were told to pack up and leave the facility. Thirty of the 100 patients were said to have nowhere to go.
‘Here’s the facts, the company ran out of cash. Revenue dropped drastically and they didn’t adjust costs.’
The Connecticut and Pennsylvania locations were also abruptly shut down after the deaths of CEO Peter Schorr and CAO Scott Korogodsky, according to the report. Korogodsky took the helm as the leader of the company after Schorr committed suicide inside his home in Delray Beach, according to a second report.
Just days after Schorr died, it was confirmed that Korogodsky had also killed himself, according to the Palm Beach County Medical Examiner’s Office.
Lissa Franklin—the Vice President of Southeast Florida Recovery Advocates—said, “I’m sure there’s more to the story, but from the employees that I spoke with most everybody that was there did find safe and supportive discharge options.”
“It’s very sad what happened to the Retreat. From my experience. It was a great program,” she continued.
“They always helped everyone in the community. They treated everybody with compassion and kindness.”
Franklin went on to say that the facility was one of the only ones in the area that accepted Medicaid or VA health insurance policies, according to the Daily Mail. Internal emails revealed that Korogodsky assured staff members that they would receive payment after there was a delay in receiving paychecks.
Alexander Hoinsky, the chief financial officer for the facility, said on Thursday that the company had been experiencing financial hardship for around a year. He noted that he started to become alarmed when executives at the company stopped taking his calls, according to reports.
“I left messages and emails [and] laid out what was going to go forward. Basically, they did not want to hear it,” Hoinsky said.
“Here’s the facts, the company ran out of cash. Revenue dropped drastically and they didn’t adjust costs,” he added.
While employees have still not received their payment, Hoinsky insisted that he was not in control of the money when these issues first came up, and he is still not in control of the money.
Like Blaze News? Bypass the censors, sign up for our newsletters, and get stories like this direct to your inbox. Sign up here!