Employees of shuttered behavioral health centers still seeking pay

Former employees of Retreat Behavioral Health have still not been paid for their final weeks of work. 

The mental health and substance use treatment chain abruptly closed its facilities June 21, following the death of the company's CEO, Peter Schorr, by suicide. A second executive, Retreat's chief administrative officer, Scott Korogodsky, died by suicide days later. 

The closures have left over 700 employees in three states without pay and dozens of patients without a place to go. Retreat Behavioral Health operated three inpatient facilities in New Haven, Conn., Ephrata, Pa., and Palm Beach, Fla, and five outpatient centers. 

Here are three updates on the fallout: 

  1. Court proceedings in June painted a clearer picture of the company's financial operations prior to its closure, NBC affiliate WPTV reported July 4. Mr. Schorr testified in Lancaster County, Pa., court June 5, following a $5 million judgment against the company for unpaid loans.

    According to transcripts of Mr. Schorr's testimony obtained by WPTV, Retreat Behavioral Health's bank accounts were frozen following the judgment, and the company had run out of funds to pay for food and other operating expenses as of May 8. Mr. Schorr had been keeping the company afloat with his own money, according to his testimony.

  2. A Lancaster County judge appointed a temporary receiver to oversee Retreat's Pennsylvania operations, Lancaster Online reported June 28. The receivership will be tasked with paying staff their wages owed and continuing insurance coverage for employees.

    A hearing to consider appointing a receiver for Retreat's Florida operations is scheduled for July 22, according to Lancaster Online.

  3. Retreat Behavioral Health employees in Florida have filed a proposed class-action lawsuit seeking unpaid wages and financial damages, the New Haven Independent reported July 5. The class could include up to 750 employees in Pennsylvania, Florida and Connecticut. 

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