Retreat Behavioral Health, a company operating rehab facilities across the United States, has been thrown into chaos following the suicides of its top executives. CEO Peter Schorr and Chief Administrative Officer Scott Korogodsky both took their lives within five days of each other, leaving hundreds of employees jobless and numerous patients without care.
Facilities Descend into Chaos
The turmoil began with the closure of the Palm Springs, Florida, facility. Patients were initially told to leave, but then allowed back in, resulting in a chaotic scene. Some patients broke into nursing stations to access narcotics, while staff emptied refrigerators. The staff struggled to manage the situation, leading to conflicts between patients and staff.
Immediate Shutdowns and Displacement
Retreat Behavioral Health abruptly closed its Palm Springs facility last week. About 100 mental health and substance use patients were forced to leave, including 30 without a place to go. Similar shutdowns occurred at their locations in Lancaster County, Pennsylvania, and New Haven, Connecticut, leaving employees and patients in limbo.
Financial Struggles and Executive Suicides
The company had been facing serious financial difficulties for months. CEO Peter Schorr committed suicide at his Delray Beach, Florida, home on June 21. Korogodsky took over but committed suicide five days later. Emails revealed Korogodsky’s attempts to assure staff of the company’s future, but ultimately, the financial collapse was insurmountable.
Unpaid Employees and Legal Troubles
Staff at the Palm Springs center are uncertain about receiving pay for their last three weeks of work. Many employees expressed confusion and despair over the situation, as they continued to show up for work despite the unclear future. The company had also faced lawsuits for financial mismanagement, including a $50,000 lawsuit in Palm Beach County and a $5 million lawsuit in New York for loan defaults.
Response and Investigation
The U.S. Department of Labor’s Wage and Hour Division is investigating the situation. The Connecticut Department of Public Health is overseeing the transfer of patients to other treatment centers. Employees and patients alike are left seeking answers and support in the wake of this crisis.
Community Reaction
Lissa Franklin, Vice President of Southeast Florida Recovery Advocates (SEFRA), expressed sadness over the situation, noting the positive impact Retreat Behavioral Health had on the community. “It’s very sad what happened to the Retreat. From my experience, it was a great program. They always helped everyone in the community. They treated everybody with compassion and kindness.”
If you are struggling with suicidal thoughts or experiencing a mental health crisis, you can call the National Suicide Prevention hotline at 988 or visit SuicidePreventionLifeline.org.