Employees of the Northeast Ohio Neighborhood Health Services (NEON) are facing significant financial difficulties due to delayed wages. Nearly a month has passed since their last paycheck, and a recent email suggests they may partly bear responsibility for the organization’s financial struggles.
NEON Financial Challenges
NEON, a nonprofit providing medical services regardless of patients’ ability to pay, has been grappling with financial instability for some time. The organization, which operates six health centers and two mobile units in Cleveland and East Cleveland, relies on federal funding to support its operations.
Legal Issues and Funding Delays
Last summer, NEON faced a lawsuit from a lender after defaulting on a loan. A U.S. District Court judge temporarily paused the appointment of a receiver to allow negotiations. However, the court has noted that NEON needs to update its financial situation by January 8.
- NEON anticipates receiving $15.6 million in federal funding for 2026.
- The organization has reported delays in expected federal money due to ongoing court proceedings.
- Despite payments to the lender, employees are still waiting for their paychecks, which are now nearly two weeks overdue.
Impact on Employees
Neglecting payroll has led NEON employees to struggle with basic needs. Many are experiencing difficulties paying rent, fueling their vehicles, and taking care of their families.
- Some employees have incurred bank fees for insufficient funds.
- Health insurance was terminated without notice, impacting many who require medical care.
- Employees have voiced their concerns, fearing repercussions from management for speaking out.
Seeking Relief and Support
NEON employees are looking for relief as their financial situation worsens. They have reached out to landlords and utility providers to explain delayed payments. Some are resorting to temporary measures, like switching to insurance coverage via the Affordable Care Act Marketplace, to manage ongoing health needs.
NEON has indicated a hope to reinstate health insurance by January 30 and to reimburse deducted premiums if the plan cannot be reinstated.
Community Resources Available
In light of these challenges, several resources are available for NEON employees and community members:
- United Way 211: Connects residents with resources for food, housing, and transportation.
- Mental Health Crisis Hotline: 9-8-8 for support during difficult times.
Despite these obstacles, many NEON employees continue to show dedication to their patients and their work, highlighting their commitment even in tough circumstances.
