On July 26, 2024, East Cocalico Township announced concerning fiscal fallout due to the closing of a substantial behavioral health service. Investigations unveiled over 5 million dollars in unpaid expenses, stirring significant alarm among town officials and residents, who found themselves suddenly burdened with an unexpected financial strain. The town economy, including local businesses and schools, was severely impacted.
Amid the crisis, other regional healthcare providers showed a readiness to absorb some of the patients left without aid. To address the significant unpaid bills, the town council proposed a negotiation for a payment plan with the providers. Even with the future of East Cocalico Township uncertain after the closure, the community shows resilience and unity as they attempt to recover from the crisis.
Laura Rutledge, a stable owner, suffered from the closure, being left with roughly $5,000 in unpaid expenses after she housed two horses from the service’s equine therapy program.
Managing fallout from health service closure
Tom Kepler, a Middletown wholesaler, faced an outstanding debt of approximately $29,600 from the health service for seafood deliveries. This unexpected financial burden significantly impacted Kepler’s small business operations.
The sudden cancellation of the health service followed the deaths of both its founder and principal operations manager, leaving not just local businesses, but 600 employees across three states and various vendors with unpaid bills. Patients who depended on the service are scrambling to find alternatives.
A receiver has been assigned the grave task of handling the financial affairs of the Ephrata and Akron branches of the health service. There is an estimated debt of $30 million to private equity investors, and approximately 300 former employees are still awaiting their final paychecks.
Due to the unexpected termination of the health service, local businesses are trying to figure out how to recoup their losses. Despite feeling deceived and uncertain about their financial recovery, they are exploring new avenues for income, assessing alternative markets, and implementing cost-saving strategies. Their resilience shines through as they vow to persist and emerge stronger in this challenging business landscape.
