ORPEA Publishes the Summary of the External Assessment Report on Subjects Relating to the Care of Nursing Homes Residents in France and to Employment Law - Seite 2

Care of residents in French nursing homes and employment laws topics

With respect to the allegations related to the care of residents in French nursing homes and employment law, ORPEA notes in particular that the firms Grant Thornton and Alvarez & Marsal:

• found no evidence to support the following allegations:
  • systematic shortages of incontinence products;
  • rationing on food and in particular on rusks and madeleines;
  • unjustified restrictions applicable to procurement requests for new equipment or products (including protection);
  • discriminatory practices in the hiring process;

• observed:
  • that there is a procedure for monitoring and prescribing a « DCP » (Daily Cost Price) for food, which however provides that staff meals do not reduce the DCP of residents' meals;
  • that the meat portions served in the evening are reduced, without this limitation resulting in calorie and protein intakes being below official recommendations, as proteins are essentially provided during lunchtime;
  • that the systematic use of Protipulse (protein-rich food supplement) only concerned a limited number of facilities, and this during the health crisis;
  • the existence of a chronic understaffing situation, which must be considered against the backdrop of a tight employment market in the nursing home sector, it being specified that the practices of the ORPEA Group do not make it possible to offset these difficulties affecting the sector;
  • that the management of care personnel expenses is still too dependent on the occupancy rate and profitability objectives;
  • the existence of procedures for reporting adverse events that comply with regulatory requirements, but insufficient staff awareness on their implementation, resulting in the absence or delay of reports;
  • an overly complex procedure for handling complaints and claims which does not allow for an efficient and exhaustive follow-up;
  • a remuneration and incentive policy that is biased for regional directors due to its overly financial approach. Il it however noted that quality criteria are used for facility directors;
  • a policy that favors offering time off in lieu for overtime hours rather than direct payment, exacerbating the problem of understaffing;
  • incompleteness of staff files in 5% of cases and shortcomings regarding pre-hiring statements (“DPAE”) in 49% of cases;
  • a significant proportion of fixed-term contracts (22%), in particular for Nursing Assistants (33%), of which 8%, based on the sample analyzed, do not comply with the regulation on the replacement of permanent staff who are absent or awaiting the arrival of a new permanent staff member;
  • a majority of dismissals for serious misconduct, half of which were due to abandonment of position, and a rate of dispute of dismissals for serious misconduct, or real and serious cause of 12%, leading in a significant proportion of cases to a requalification of the dismissal;
  • the existence of situations in which the maximum number of residents has been exceeded, without it being a systematic policy;
  • failures in the processing of satisfaction questionnaires.

As announced on 26 March 2022, prior to the submission of the findings of these reports, ORPEA implemented a range of remedial measures aiming at correcting its internal processes with the purpose of eradicating the practices identified above, where they still existed.