Hi MerCast and welcome to the OB!
Does that pot have drainage holes in the bottom? Most orchids hate wet roots with little air around them. The fact that there was new leaf growth is a good sign. New roots should follow provided they don't suffocate.
With Phals a moisture retentive media is prefered which drains quickly and maintains air space. They also like to have warmth in the root zone.
If possible it's good to pot the plant at an angle to help prevent water collecting in the crown.
Please keep us updated, I'm sure we would all love to hear how your patient is doing.
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