The EHPAD Orpea, under pressure on its practices, obtains new funding

A view shows the logo of French care home company Orpea at the entrance to a retirement home (EHPAD – Housing establishment for dependent elderly people) in Reze near Nantes, France, February 2, 2022. REUTERS/ Stephane Mahe

Join now for FREE unlimited access to Reuters.com

Register

PARIS, June 13 (Reuters) – French nursing home company Orpea (ORP.PA), under pressure over its business practices and the management of its homes, said on Monday it had approved new funding that would result in a new levy for her of 250 million euros (260 million dollars).

“The agreement reached is therefore extremely beneficial for the ORPEA group and for all of its stakeholders, including in particular its 255,000 residents and patients, 71,676 employees and creditors,” added the company.

Orpea said this month that an audit found evidence of financial wrongdoing but did not substantiate all the allegations against the company. Police also raided Orpea’s headquarters this month. Read more

Join now for FREE unlimited access to Reuters.com

Register

A 62-page report by auditors Grant Thornton and Alvarez & Marsal said Orpea had inflated labor costs and made suspicious large payments to third parties, confirming some claims in “Les Fossoyeurs” (“The Fossoyeurs “), a book published this year.

Shares of Orpea and its rival Korian (KORI.PA) have slumped this year since the book was published. The author wrote that there had been serious shortcomings at an Orpea center in an affluent suburb of Paris.

This sparked a national debate on the conditions of care for the elderly.

Korian also denied any widespread wrongdoing and said he would always cooperate with authorities. Read more

($1 = 0.9531 euros)

Join now for FREE unlimited access to Reuters.com

Register

Reporting by Sudip Kar-Gupta; Editing by Bradley Perrett

Our standards: The Thomson Reuters Trust Principles.

Comments are closed.