Nursing home company Orpea, under pressure over the practices, gets new funding

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A view shows the logo of French nursing home company Orpea at the entrance of a retirement home (EHPAD – Housing Establishment for Dependent Elderly People) in Reze near Nantes, France, February 2, 2022. REUTERS/Stephane Mahe

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PARIS, June 13 (Reuters) – French care home company Orpea (ORP.PA), which is under pressure over its business practices and the way it runs its homes, said on Monday it had approved new financing, which would result in a new drawdown of 250 million euros ($260 million).

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

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

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A 62-page report by accountants Grant Thornton and Alvarez & Marsal says Orpea overstated labor costs and made suspiciously large payments to third parties, corroborating some claims in Les Fossoyeurs (‘The Gravediggers’), a book published by this year was published.

Shares in Orpea and competitor Korian (KORI.PA) have plummeted this year since the book was published. The author wrote that there had been serious neglect at an Orpea center in a wealthy suburb of Paris.

This triggered a nationwide debate about the care conditions in old age.

Korian has also denied any widespread wrongdoing, saying it would always cooperate with authorities. Continue reading

($1 = 0.9531 euros)

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Reporting by Sudip Kar-Gupta; Edited by Bradley Perrett

Our standards: The Thomson Reuters Trust Principles.

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