Multiple mental health centers abruptly close after CEO's death

Retreat Behavioral Health has abruptly closed multiple treatment centers, according to local media reports. 

The Palm Springs, Fla.-based company closed an 80-bed inpatient treatment facility in New Haven, Conn., on June 21, the New Haven Independent reported June 23. The facility's executive director told the outlet he decided to close the facility after the death of Retreat CEO Peter Schorr. 

The company confirmed Mr. Schorr's death in a Facebook post June 22. 

Jarel Gallman, executive director of the New Haven facility, told the Independent the facility had "financial struggles." Retreat also closed an outpatient treatment facility in New Haven, the Independent reported June 24.

The company also closed an inpatient facility in Palm Beach, according to NBC affiliate WPTV. 

Employees at Retreat facilities in New Haven, Palm Beach and Ephrata, Pa., told reporters they had not been paid for their work. In an email to employees obtained by WPTV, Scott Korogodsky, Retreat Behavioral Health's chief administrative officer, said the company was experiencing financial problems and "did not yet have an answer" as to when employees would be paid.  

Retreat operated three inpatient mental health and substance use treatment facilities in Pennsylvania, Connecticut and Florida, according to its website. It also operated six outpatient centers. 

A spokesperson for Retreat told WPTV the company discharged patients in its facilities or transferred them to partnering locations. 

Mr. Gallman told the Independent the New Haven facility had 30 to 40 patients at the time it closed. The facility worked with the Connecticut Department of Public Health to find inpatient and outpatient facilities for patients, or create discharge plans. 

"We understand that this transition is challenging, and we are prioritizing rectifying payroll issues during this difficult time," the spokesperson told WPTV. 

In his email to employees, Mr. Korogodsky said the company is working on "restructure and/or preservation." 

"As we stand now, we are closing services and are hopeful for new opportunities to reopen the doors," he wrote. 

Becker's has reached out to Retreat Behavioral Health for comment and will update this article if more information becomes available. 

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