I suggest repotting... you can repot a Phrag any time (new growth is great sign, but even in its absence it'll appreciate it) I'd suggest small bark, you can mix in a bit of sphag if you have trouble keeping up with watering. They also benefit from sitting in a saucer with some water. I put about an inch (2.5 cm) of rock at the bottom of the pot, so that the roots are just above the water in the saucer. If they grow down into the water, that's their choice but let them choose the wet feet on their own. But these like to stay a lot wetter than most orchids - which means that the mix breaks down faster, and so they need repotting pretty frequently, like once a year.
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