Nearly a month since their last paycheck, employees with an East Side health care center got an email insinuating that they were at least partly to blame for the center’s dire financial situation.
The message addressed the most-recent missed paycheck for employees of Northeast Ohio Neighborhood Health Services. It said they hadn’t done enough to cover expenses.
“I have over the past few years emphasized the importance of generating the appropriate amount of revenue to support our organization to Senior Staff in hope of them encouraging staff to do better in their efforts to see that revenue is coming in to cover all the expenses the organization incurs,” said the email, which was sent on CEO Willie Austin’s behalf. “To date, that has not happened. Hence, we are in a tough position.”
The nonprofit’s position could be improved by “all of you doing your part to see that our patients are being served, and we are able to bill our payers,” according to the email.
NEON provides medical services to patients regardless of their ability to pay. It receives federal funding annually to help operate its six health care centers and two mobile units across Cleveland and East Cleveland.
For awhile, the nonprofit has been struggling to stabilize its finances. Last summer, a lender sued the nonprofit in federal court after it defaulted on a loan. A judge agreed to place NEON under the control of a receiver but paused that process last month to allow for negotiations with the lender.
U.S. District Court Judge Christopher Boyko ordered NEON to update the court Jan. 8, after he was “inundated with calls” from employees complaining about not being paid or receiving health insurance, even though premiums were deducted from earlier paychecks. (NEON told employees this week in an email that their health insurance had been terminated for the months of December and January.)
In response, NEON told the court that it has almost finalized a deal to secure money to repay the lender. Another snag, NEON wrote, is that the federal money it relies on for operations has been delayed due to the court case. NEON wrote that it is expecting $15.6 million for 2026 alone; federal databases show the agency was awarded $6.2 million, though one database indicated 2026 data is still preliminary. NEON wrote that the hold-up of federal money is also holding up payroll, though the health center is paying All Pro Capital, the lender, $25,000 a week.
NEON acknowledged to the court that employees were frustrated about their paychecks, which are nearly two weeks late. It also noted that appointing a receiver could mean that essential services and the employment of its doctors, nurses and other staff would end.
Employees struggling to get by, serve patients
Without pay or health insurance, NEON employees told Signal Cleveland that they are struggling to pay rent, put gas in their cars, care for their families and meet their basic needs. Signal Cleveland spoke with seven NEON employees, who work across the organization in patient care and administration. Signal Cleveland isn’t naming staff members who said they fear retaliation after an employee was terminated last November after being quoted by name in a story about NEON.
One NEON employee said her bank keeps charging her nonsufficient funds fees, which are often charged when a checking account lacks enough money to complete a transaction.
“I’m at the point I just want to cry,” she said. “I can’t keep borrowing from people.”
Signal Cleveland reached out to Austin, NEON’s CEO, and Karen Redrick, an administrator who has sent emails on behalf of Austin. They did not respond to any of Signal Cleveland’s requests for comment. The company did say in its emails to employees that it is still anticipating “action on payroll” by the end of the week.
NEON wrote to the court that it is working closely with the Department of Health and Human Services to release the federal funding. It’s hopeful that federal funding will be released within one to three days.
NEON employees unsure where to turn for relief
NEON employees say they are nearing their wit’s end. One said she’s calling her landlord to explain why she needs extra time to pay rent. Another said her phone got cut off for a week, and she doesn’t have enough money to pay for a bus ticket for transportation.
“I am stressed. I’ve been having stomach problems,” one health care provider at NEON told Signal Cleveland. “…My mortgage is due. The only thing that’s my saving grace: my mortgage company is lax.”
In addition to the late paycheck, NEON’s director of human resources informed employees via email Jan. 8 that the health insurance plan it sponsored was terminated on Dec. 1. Many employees had already discovered the cancellation after going to medical appointments or picking up prescriptions, the company acknowledged in the email.
“We are sorry for the delay in sharing this information with you,” wrote Perry Murdock, the director of human resources. The company is trying to reinstate health insurance by Jan. 30, which it said would retroactively cover employees through Dec. 1, Murdock added.
The company said it would refund the medical insurance deductions it made from employee paychecks “once we know that the plan will not be reinstated.”
At least two employees told Signal Cleveland they had to cancel or reschedule doctor’s appointments this week because they didn’t have active health insurance. A third employee, who is diabetic, said she has an appointment with her doctor next week. She’s not sure whether he will treat her if she shows up without a working insurance plan. A fourth employee said she bought care on the Affordable Care Act Marketplace.
Despite the chaos with payroll and insurance, many employees are still showing up to work, employees said. That includes the health care provider Signal Cleveland spoke with.
“People come in cause we like what we do,” the health care provider said. “… We like the people we work with. We like the population that we serve.”
Signal Cleveland visited one NEON health center site on Jan. 8, which was still open to the public. Signal Cleveland spoke with one patient there who said she was unaware that employees had gone unpaid for almost two weeks.
Signal Cleveland is interested in speaking to NEON employees and patients. If you want to chat or have questions, reach out to [email protected]. The following resources are available to NEON employees and other community members in need.
- United Way 211, which can connect residents with a number of resources, including for food, housing, transportation and utilities
- 9-8-8, a mental health crisis hotline
