French care home operator dismisses chief executive amid allegations of mistreatment

Europe’s largest for-profit care home operator Orpea Group has terminated its chief executive officer Yves Le Masne’s duties, following claims of resident mistreatment.

The group’s board of directors has appointed current non-executive chairman Philippe Charrier as the new chief executive and chairman with immediate effect.

“The board expresses its thanks to Mr. Yves Le Masne for his 28 years of service to the group,” a statement read. “Mr. Charrier’s mission will be to ensure, under the Board’s control, that the best practices are applied throughout the company and to shed full light on the allegations made, relying in particular on the evaluation assignments entrusted by the board of directors to two independent firms.”

The statement continued to assure of the board’s “confidence in and support to the Orpea Group’s 70,000 employees, who carry out a very difficult but essential mission with immense dedication, and in reminding residents and families of the Group’s unwavering commitment to their service”.

Journalist Victor Castanet’s book “Les Fossoyeurs” (“The Gravediggers”), published in January following a three year investigation, alleged that Orpea left some patients without care for days and rationed services. The company has denied the accusations.

Founded in 1989, Orpea is one of the world leaders in long-term care, with 1,156 facilities comprising 116,514 beds across 23 countries. According to Reuters, Orpea now faces possible government sanctions and customer lawsuits.

The group has announced that it has decided to immediately mandate two well-known firms to carry out an independent assessment of all the allegations. Since the book’s publication, Orpea’s shares have fallen nearly 60%, trading at €34.04 at the time of writing according to HealthInvestor.

A graduate of the HEC business school and chief executive of Laboratoires Mayoly Spindler since 2019, Charrier’s previous positions include chief executive officer of Oenobiol, Labco SA, Ponroy-Havea and Procter & Gamble France. He is the founding president of Clubhouse France, an association dedicated to the integration of people living with a mental disorder.

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