Failing roots on new orchid. Should I switch to s/h now?

[AndreaK]

This arrived in bud on March 16th, from SVO. I wanted to wait on the repotting this plant because it is in bud again after flowering, but being curious I decided to peak and found decaying roots.
As you can see from the pictures, most of the roots were gray/brown and mushy. I have just been running r/o water through the pot weekly - no soaking. It was in small bark, with a small ball of sphag. in the center. I hope the few roots it does have will be enough to salvage the plant. It was actually 2 small plants in one pot - BONUS! It has a few tiny new roots (see pictures - use microscope lol) starting to grow. Does it appear to be placed in the proper location in the pot? I will wait for replies before I fill with PrimeAgra. Or should I plant one in bark and the other in s/h? Do you suggest soaking it in Physan due to the root rot?
Thanks for any input.