ORPEA Decides to Repay All of the Sums Claimed by the CNSA

Rhea-AI Summary

ORPEA has unveiled a transformative plan titled "With you and for you," aimed at enhancing care quality while rebuilding trust. Key initiatives include reimbursing 55.8 million euros to CNSA, a robust hiring campaign exceeding monthly targets, and a focus on professional training for staff. ORPEA plans to recruit 1,000 apprentices by 2024 and has committed to 80% participation in training programs. The strategy seeks to improve patient care and reduce reliance on unqualified staff, all while fostering open dialogue with stakeholders.

Positive

• ORPEA is implementing a reimbursement of 55.8 million euros to CNSA, indicating accountability and trust rebuilding.
• Monthly recruitment figures have exceeded targets, with 800 permanent contracts initiated, surpassing the goal of 550.
• The company aims to expand apprenticeships from 200 in 2022 to 1,000 by 2024, enhancing workforce quality.
• Commitment to ensuring 80% participation in professional training for employees by 2023.

Negative

• None.

PUTEAUX, France--(BUSINESS WIRE)-- Regulatory News:

ORPEA (Paris:ORP):

With the “With you and for you, changing ORPEA !” plan, presented on 15 November, Laurent Guillot, CEO, backed by his new management team, resolutely committed to transforming the company. This plan places at its core the care and assistance of our patients, residents, their families and our employees. It aims to rebuild an ethical and responsible company.

That is why, with a view to turning the page on errors of the past and returning to full cooperation with the authorities, ORPEA has decided to reimburse all of the sums due to the CNSA, amounting to 55.8 million euros¹ based on currently available information, and to implement solutions to address the issue of assistants “acting as” professional caregivers.

As part of its transformation plan, ORPEA has in fact announced a switch to an ambitious Human Resources recruitment, retention and training policy for our employees.

First, to ensure better quality of care, notably with more continuous presence with our patients and residents, but also to reduce structural recourse to “acting as” staff, ORPEA is committed to a significant recruitment plan which is already reaping results. Indeed, since September, 800 recruitments on permanent contracts per month were carried out, significantly exceeding the commitment made of 550 recruitments per month. Furthermore, ORPEA has launched a global work/study recruitment initiative, to increase the number of apprentices recruited from 200 in 2022 to 1,000 in 2024.

Also, ORPEA has decided to make training and skills development one of its priorities and to ensure 80% participation in professional training from 2023.

Lastly, ORPEA will offer to all “acting as” staff, support and financial coverage of their qualifying training to become registered caregivers. As a result, by 2023, ORPEA will offer to 1,000 “acting as” assistants training to become professional caregivers via apprenticeships (PRO A) or Validation of Professional Experience (VAE).

Longer-term and to limit as much as possible recourse to “acting as” positions, several avenues could be explored with all of the sector and with public authorities:

• Simplification of files and the VAE process, notably with multiple VAE juries;
• Shorter training courses giving the right to integration within a care section;
• Definition, by Decree, of acts of the professional caregiver who could then delegate under supervision, to unqualified assistants.

These solutions and others which should be defined collectively by sector players and public authorities, should reduce the use of “acting as” staff by all players, either in private profit-making entities or public not-for-profit organisations.

The decision to clear our balance and pay all of the sums due to the CNSA, the commitments assumed and the proposals made are part of the approach described by the ORPEA group in its transformation plan to carry out its missions within a serene and calm framework, via a spirit of constructive dialogue with all of our stakeholders.

About ORPEA

ORPEA is a leading global player, expert in the care of all types of frailty. The Group operates in 22 countries and covers three core businesses: care for the elderly (nursing homes, assisted living, home care), post-acute and rehabilitation care and mental health care (specialized clinics). It has more than 72,000 employees and welcomes more than 255,000 patients and residents each year.
https://www.orpea-group.com/

ORPEA is listed on Euronext Paris (ISIN: FR0000184798) and is a member of the SBF 120, STOXX 600 Europe, MSCI Small Cap Europe and CAC Mid 60 indices.

¹ Leading to an additional provision of €30.1 million in accounts closed 31 December 2022. The Company's prior stance is explained in the press releases dated August 2, August 30 and September 28, 2022, as well as in the 2021 Universal Registration Document and the 2022 Half Year Financial Report.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221121005975/en/

Media Relations



ORPEA

Isabelle Herrier-Naufle

Directrice Relations Presse

Tél. : 07 70 29 53 74

i.herrier-naufle@orpea.net

Image 7

Charlotte Le Barbier

Tel.: 06 78 37 27 60

clebarbier@image7.fr



Laurence Heilbronn

Tél. : 06 89 87 61 37

lheilbronn@image7.fr

Investor Relations



ORPEA

Benoit Lesieur

b.lesieur@orpea.net

Toll free tel. nb for shareholders:

+33 (0) 805 480 480

NewCap

Dusan Oresansky

Tél. : 01 44 71 94 94

ORPEA@newcap.eu

Source: ORPEA

FAQ

What is the focus of ORPEA's new transformation plan announced on November 15?

ORPEA's transformation plan focuses on improving patient care, ethical responsibility, and staff training, aiming to rebuild trust.

How much is ORPEA reimbursing to the CNSA?

ORPEA is reimbursing a total of 55.8 million euros to the CNSA as part of its accountability measures.

What recruitment goal has ORPEA set for 2024?

ORPEA aims to recruit 1,000 apprentices by 2024 as part of its workforce enhancement strategy.

What percentage of ORPEA employees are expected to participate in professional training by 2023?

ORPEA is committed to achieving 80% participation in professional training for its employees by 2023.