I don't think the plant has crown rot - I don't see the classic signs of that, which would be blackening, softening, and necrosis in the crown area. I do fear that you have had some root rot, however, and it's most likely from overwatering. More new Phal. growers (and houseplant growers in general) kill their plants from overwatering than from underwatering.
This is a plant that can be saved. It's been stressed and will take a while to recover, so don't expect it to bloom again next Spring, but it'll survive and bloom again the the future if you just give it a little bit of care.
Since you're in West Virginia you aren't going to be growing outdoors, so while I think Lorraine's suggestion for potting is a good one I'm not sure it's appropriate for your conditions. I'd suggest using the clear plastic pot you've photographed with it (if it has good drainage holes), or something similar. With a clear pot you can see in and tell when the roots are still wet so that you won't overwater. If that's the same pot the plant was in before, though, I'd wash it out with bleach and then thoroughly rinse it before potting up. You might also consider dipping the roots and base of the plant in a fungicide solution just to make sure that whatever has caused the problem is eliminated.
For your conditions, something like a bark mixture would probably be best, so what you got at Lowe's should be fine. Phal's like to be securely potted, so pack the material as tightly as you can without crushing the roots, and if the plant wobbles at all use a stake to stabilize it. Once it's potted, the plant needs to rest and recover for a while, so let it sit in a place with just a bit less light than it normally receives. Err on the side of allowing the medium to get a bit too dry and compensate by making sure the plant is regularly misted - though don't allow the
misting to let water sit in the crown! You should see new root growth fairly soon, and when you do you can move the plant back into the normal light conditions.
Good luck!
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