LAKE WORTH BEACH, Fla. — Dozens of employees are waiting for paychecks after Retreat Behavioral Health suspended operations until further notice, according to an internal email received by WPTV on Monday.
The emails also say the psychiatric facility is unable to discharge patients and pay salaries for the last pay period after founder Peter Scholl died on Friday. The sudden closure leaves employees like Cody Snyder without an income.
“As employees, we shouldn’t have to worry about not getting paid and potentially losing our homes and cars,” he said. “Executives and people who make six-figure salaries may not have to worry about that, but I’m an average American who works hard to provide for my family and struggles to make it to payday.”
Synder told WPTV’s chief investigative reporter Jamie Ostroff she was trying to provide for her family, including 3-month-old Winnie. Synder said she and her coworkers are entitled to the money to be paid for services provided.
Cody Snyder
“I just talked to another coworker and she’s lost her phone bill, her car and can’t pay her rent,” Snyder said.
He also said two late payroll payments in the past few months were due to errors, which he believes is evidence the company was aware of its financial problems. Internal emails provided to WPTV’s “Retreat Behavioral Health” said there were issues with the payroll processing system.
“We want to emphasize there is no need to worry,” Chief Administrative Officer Scott Korogodski said in an email sent June 6. “Your paychecks are being processed and you will receive them.”
According to court records, the Palm Beach County tax collector sued Retreat Behavioral Health, which also has locations across the East Coast, for failing to pay about $1,700 in property taxes.
“I may have been born in the morning, but not this morning,” Synder said. “This is common sense. I have common sense, and my sense of the problem is that there was a problem long before this incident occurred.” [event]”
People who called and wrote to WPTV’s newsroom said the company hosted a Microsoft Teams call on Saturday followed by an email from Korogodski alleging the company was in financial trouble.
“We have not yet received an answer regarding the distribution of payroll funds to employees. We may have more information to provide later this week,” Korogodski wrote. “We are working with outside resources, including attorneys and other knowledgeable professionals, to provide guidance to management.”
The email also recommended that employees not apply for unemployment benefits and said the company was working to ensure employees would continue receiving medical benefits.
Maggie Hunt, a spokeswoman for Retreat Behavioral Health, said the company is discharging patients or transferring them to affiliated treatment centers.
“We understand this transition will be difficult and are prioritizing rectifying the pay issue during this difficult time,” she wrote to WPTV reporter Ethan Stein.
Stein visited the facility this afternoon, where people were transporting their belongings in bell carts as vans transported people out of the facility.
Cody Snyder said he thinks there may be a communication issue because the person who normally answers the phone no longer works at the facility.
In an email to employees sent Monday night, Korogodski said employees, especially working to get paid, remain his top priority. He said the company plans to restructure and close.
“The reconstruction and preservation of the Retreat is actively underway,” Korogodski said. “This will take some time. As it stands, we have closed services and hope for a new opportunity to reopen.”
