2nd executive at shuttered behavioral health chain dies

A second executive at a recently closed behavioral health facility chain has died. 

Scott Korogodsky, chief administrative officer of Retreat Behavioral Health, died June 22, NBC affiliate WPTV reported June 27. His death followed that of Retreat Behavioral Health CEO Paul Schorr. Mr. Korogodsky and Mr. Schorr died by suicide, Florida police confirmed to WPTV. 

Retreat Behavioral Health operated three inpatient facilities in New Haven, Conn., Ephrata, Pa., and Palm Beach, Fla. Those facilities abruptly closed June 21 in the wake of Mr. Schorr's death. The company also shuttered its five outpatient clinics. 

The closures have left 750 employees at the organization without pay for the time they worked, WPTV reported. 

"Obviously, this is a difficult and sad time for us," the executive director of Retreat's Pennsylvania facility told WPTV. "Due to some financial challenges and the unexpected passing of our founder and owner on [June 21], we have made the difficult decision to, at a minimum, suspend operations temporarily." 

Alexander Hoinsky, CFO of Retreat Behavioral Health, told WPTV that Mr. Korogodsky and Mr. Schorr stopped returning his calls around two months ago. Mr. Hoinsky said the company had run out of cash. 

"Revenue dropped drastically and they didn't adjust costs," he said. 

Mr. Hoinsky told WPTV he has no control over when or if employees are paid and is unsure if he is still employed by Retreat. He said he is hopeful employees will be paid when more reimbursements come through from payers. 

"I assume I will have nothing at all to do with the company moving forward," he said. 

Dozens of patients have been discharged from Retreat facilities, according to media reports. The company provided inpatient treatment for mental health and substance use disorders, according to its website. 

A nurse at Retreat's facility in Palm Beach told WPTV the facility had around 100 patients at the time of its closure. Around 30 of those individuals were discharged with nowhere to go, the nurse said. 

A therapist at the company's New Haven facility told the New Haven Independent the facility had 30 to 40 inpatients at the time of its closure. 

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