implicated in a book, the group continues its fall on the stock market

By Sudouest.fr with AFP
Published on 01/25/2022 at 3:14 p.m.
Updated on 01/25/2022 at 7:27 p.m.

On the eve of the publication of a book denouncing “failures” in its retirement homes, the company Orpea lost 30.13% in two days on the Paris Stock Exchange

The action of the group of retirement homes Orpea, which has several dozen establishments in the Southwest, lost more than 20% on the Paris Stock Exchange on Tuesday, after a 24-hour suspension of its listing on the following the announcement of the publication of a book “The gravediggers”, denouncing serious failures in its establishments. The title plunged 20.35% to 55.18 euros. This is a tumble of 30.13% in two days. On Monday, it had fallen more than 16% before the company filed for a trading halt shortly after midday.

Orpea, along with other retirement home groups on the Paris Stock Exchange, fell on Monday after the publication in the newspaper Le Monde of the “good sheets” of a book-investigation. The independent journalist Victor Castanet describes a system where hygiene care, medical care, and even residents’ meals are “rationed” to improve profitability.

Olivier Véran takes this book “very seriously”

“I obtained testimonies according to which these dysfunctions had their origin in a policy of cost reduction implemented at a high level” of the company, summarized the author. The book comes out Wednesday. The company “formally challenged” Monday evening the accusations, which it considers “false, outrageous and prejudicial”.

“We’re not rationing, it’s not in line with our guidelines, it’s not in line with our values,” said Tuesday evening on BFM TV Jean-Christophe Romersi, CEO of Orpea. “We will never sacrifice the quality of support, the quality of care to any notion of profitability whatsoever”.

The Minister of Health Olivier Véran assured Tuesday on LCI “take very seriously” the book, while wanting to wait for “factual elements” “We are going to ask him questions [à Orpea], I am waiting to have factual elements from the independent assessment and control authorities,” he explained, without excluding the opening of an investigation.