ORPEA publishes the summary of the external evaluation report on subjects relating to the care of EHPADs in France and labor law

PUTEAUX, France, June 29, 2022–(BUSINESS WIRE)–Regulatory news:

In accordance with its commitment, the ORPEA group (Paris:ORP) has posted on its website the summary of the final conclusions of the audits carried out by Grant Thornton and Alvarez & Marsal, on the subject relating to the care of residents of nursing homes. in France and on social law matters, thus supplementing the external surveys commissioned by the Board of Directors.

This follows the publication of the preliminary results of the audits on April 26, 2022 and the publication on June 8, 2022 of the final conclusions of these firms regarding the use of public funds and business relationships with third parties, including certain public officials. , to which reference is made where appropriate.

Philippe Charrier, Chairman and Chief Executive Officer, declared:

“With the publication of these last two parts on the care of EHPAD residents in France and on social policies, we are fulfilling the commitment made on January 26 to shed light on the facts alleged against the ORPEA group in the book. But this effort at transparency does not stop there: my successor as Chief Executive Officer, Laurent Guillot, will actively pursue this dialogue with all of our stakeholders.

The Grant Thornton and Alvarez & Marsal report allows us to dismiss the allegation of a system of generalized abuse. He refutes in particular the idea of ​​a rationing of protection as well as several allegations concerning meals and food. However, it notes shortcomings and insufficiencies in the treatment of adverse events, in the managerial incentive system and in the management of human resources. We have announced and implemented an initial set of measures to correct these malfunctions. True to our commitment to sustainable improvement, we continue to develop our practices with particular attention to setting an example in order to best support vulnerable people.

I would like to thank all the residents, patients and their families once again for the trust they continue to place in the group, as well as all of our employees for the commitment they show on a daily basis. We would also like to thank the 1,900 people who took part in the round tables (“Etats Généraux”) in our French retirement homes, taking part in very rich exchanges which will fuel the group’s actions in the months to come. »

Support for residents in nursing homes and labor law subjects

Regarding the allegations relating to the care of EHPAD residents and labor law, ORPEA notes in particular that the firms Grant Thornton and Alvarez & Marsal:

  • observed:

    • that there is a procedure for controlling and prescribing a “DCP” (Daily Cost Price) for food, which however provides that staff meals do not reduce the DCP for residents’ meals;

    • that the portions of meat served in the evening be reduced, without this limitation resulting in calorie and protein intakes lower than the official recommendations, proteins being mainly provided at lunchtime;

    • that the systematic use of propel (food supplement rich in protein) only concerned a limited number of establishments, and this during the health crisis;

    • the existence of a situation of chronic understaffing, which must be assessed in the context of a tight job market in the EHPAD sector, it being specified that the practices of the ORPEA Group do not make it possible to overcome these difficulties affecting the sector;

    • that the management of nursing staff expenditure is still too dependent on the objectives of occupancy rate and profitability;

    • the existence of procedures for reporting adverse events that comply with regulatory requirements, but insufficient staff awareness of their implementation, resulting in the absence or delay of reporting;

    • an overly complex procedure for handling complaints and claims that does not allow for effective and exhaustive monitoring;

    • a biased compensation and incentive policy for regional directors due to its excessively financial approach. However, he noted that quality criteria are used for headteachers;

    • a policy that favors the offer of compensatory time off for overtime rather than direct payment, aggravating the problem of understaffing;

    • incompleteness of personnel files in 5% of cases and insufficient declarations prior to hiring (“DPAE”) in 49% of cases;

    • a large proportion of fixed-term contracts (22%), in particular for nursing assistants (33%), of which 8%, on the basis of the sample analyzed, do not comply with the regulations on the replacement of permanent staff who are absent or pending the arrival of a new holder;

    • a majority of dismissals for serious misconduct, half of them for abandonment of position, and a rate of contestation of dismissals for serious misconduct, or real and serious cause of 12%, leading in a significant proportion of cases to a reclassification of the dismissals;

    • the existence of situations where the maximum number of inhabitants is exceeded, without this being a systematic policy;

    • failures in the processing of satisfaction questionnaires.

As announced on March 26, 2022, prior to the submission of the conclusions of these reports, ORPEA implemented a set of corrective measures aimed at correcting its internal processes with the aim of eradicating the practices identified above, where they existed Again.

It is recalled that the work of Grant Thornton and Alvarez & Marsal is necessarily limited and partial, their purpose being to verify the allegations made in a book published in January 2022.

The ORPEA group, under the impetus of its new Chief Executive Officer, is determined to pursue and correct the shortcomings identified above, to acquire the necessary human resources and to allocate the necessary financial resources.

About ORPEA (www.orpea-corp.com)

Founded in 1989, ORPEA is one of the world leaders in dependency care (EHPAD, EHPAD, Aftercare and Rehabilitation Hospitals, Mental Health Hospitals, Home Services)

ORPEA is listed on Euronext Paris (ISIN code: FR0000184798) and is part of the SBF 120, STOXX 600 Europe, MSCI Small Cap Europe and CAC Mid 60 indices.

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