Orpea misuses public funds for nursing homes

Upon questioning, Orpea, Wednesday, June 8, 2022, admitted to some of the bad practices that were listed in the book Grave diggers. After this book was published at the beginning of the year, the French nursing and accreditation giant asked two independent companies, Grant Thornton and Alvarez & Marsal, to conduct audits. The latter published a summary of their conclusions. They are worried.

With regard to the management of public funds allocated to the group’s Ehpad device in France, the companies noted several dysfunctions. as such “Unqualified or excessive amounts declared to the authorities”which they attribute to unreliability in the workforce declaration process, while the author of grave diggers Victor Castaigne saw it as an opportunity for the group to save money. Similarly, companies indicate “Unreliability of reconciliations of purchase orders, delivery receipts and purchase invoices, which did not allow for the systematic detection of potential fraud”.

Read also: Epad Orbea: ‘Those who set up order still exist’, Victor Castanette denounces

Discounts inflate group result

They confirm a serious fact “Exercising year-end discounts (RFA) with some major suppliers of public grant-financed products that have not been reported to the authorities as planned”. These rebates made it possible to fund group activities or investments that were not directly related to sponsorship and subordination, which is prohibited. Along the same lines, companies have also noticed “An outdated practice since 2017, aimed at maximizing the consumption of allocations by the authorities for nursing homes for medical devices. This is through billing by the service provider whose reality cannot be checked and after the group has benefited through the RFA mechanism”.

Through the savings made by the group by misusing public funds, “The surpluses thus generated were able to contribute to the outcome” Orpea, a listed company.

The companies also set the bonus paid, with the approval of former General Manager Yves Le Massen, who has been dismissed since the book was published, or members of his team, “For outside commercial shareholders whose high amounts raise questions. These bonuses were determined by the group as part of its recent internal investigations and some of them already appear, among other transactions, in the complaint that Orpea filed on April 21, 2022 with the Nanterre Public Prosecutor.according to the company’s press release.

Orpea also acknowledges that it was the subject of research on Wednesday 8 June at headquarters and in some of its institutions: after inspections by IGAS and IGF, an investigation was opened last April by the Attorney General’s Office. from Nanterre. Companies will also have to present their conclusions in a few days on the topics of caring for nursing home residents and the social aspect.

Read also : Europe. Could Becoming a ‘Company with a Mission’ Save Ehpad Group?

The administration concerned

In the face of these discoveries, Philippe Charrier, CEO of Orpea, presents in a press release “To all our stakeholders we have our sincerest apologies. Since the departure of the former CEO on January 30, 2022, we have taken urgent and objective measures to correct ineffective systems, eliminate inappropriate practices, punish individual errors, and take action before the appropriate courts.”.

according to Le Figaro In a letter to Philippe Charrier, 14 major investors in Orpea have called for a complete renewal of the board of directors, due to the lack of “Inability to restore satisfactory dialogue with group management yet”. New Managing Director, Laurent Gillot, will take over on July 1st at Orpea.

Orpea misuses public funds for nursing homes

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