Buyer wanted for Retreat Behavioral Health sites

A Pennsylvania judge has appointed a receiver to oversee the sale of Retreat Behavioral Health's facilities in the state, LancasterOnline reported Aug. 20. 

In June, Retreat Behavioral Health's inpatient facilities in Pennsylvania, Connecticut and Florida abruptly closed after one of its top executives died by suicide, with a second executive dying shortly thereafter. 

The appointed receiver will oversee the sale of Retreat's Ephrata, Pa.- and New Haven, Conn.-based facilities, LancasterOnline reported. A decision on a receiver for the Florida operations is pending. 

A separate receiver appointed to investigate Retreat Behavioral Health's finances said he found evidence of potential healthcare fraud and millions in unexplained payments, LancasterOnline reported Aug. 15. 

The company has at least $30 million in debt, according to the outlet. James Young, the receiver appointed to manage the company's assets, wrote in court documents there was "no reasonable scenario" in which the company's current ownership could reopen facilities. 

Retreat's campuses must be sold to an operator willing to reopen them or completely wound down, Mr. Young wrote. 

The closure of Retreat's facilities left 650 employees out of work. 

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Articles We Think You'll Like

 

Featured Whitepapers

Featured Webinars