Employees at Retreat Behavioral Health Centers say they are left without answers after the sudden suicides of two top executives led to the closure of several facilities. Daily Mail.
The rehab company, which has locations in Connecticut, Florida and Philadelphia, suddenly closed its Palm Beach, Florida, facility last week after employees said they told about 100 mental health and substance abuse patients to pack up and leave the facility, leaving 30 of those patients with nowhere to go.
“The facts are this: the company burned through cash. Revenues were down substantially, but it didn’t adjust costs.”
The stores in Connecticut and Pennsylvania were also suddenly closed following the deaths of CEO Peter Scholl and CAO Scott Korogodski, who took the reins as the company’s leader after Scholl committed suicide at his Delray Beach home. Second Report.
Just days after Scholl’s death, Korogozki was found to have committed suicide, according to the Palm Beach County Coroner’s Office.
“I’m sure there’s a lot more to this story, but the employees I’ve spoken to say that almost everyone there found safe and supportive discharge options,” said Lisa Franklin, vice president of Southeast Florida Recovery Support.
“It’s very sad what happened to the retreat. In my experience it was a great program,” she continued.
“They were always helping everyone in the community. They treated everyone with kindness and compassion.”
Franklin also said the facility was one of the few in the area that accepted Medicaid and Veterans Affairs health insurance, according to the Daily Mail. After payroll was late, Korogodski assured staff that payments would come through, according to internal emails.
The facility’s chief financial officer, Alexander Hoynski, said Thursday that the company had been in financial difficulty for about a year. He reportedly began to become concerned when company executives stopped answering their phones.
“I left messages and emails [and] “We laid out what was going to happen, and basically they didn’t want to hear it,” Hoynski said.
“The facts are this: the company burned through cash. Revenues fell significantly, but it didn’t adjust costs,” he added.
Employees have yet to receive their payments, but Hoynski claims he was not in control of the money when these issues first emerged and he still is not in control of the money now.
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