By Diana Mandia
(Reuters) -France’s Orpea, hit by allegations of malpractice at its French retirement homes, on Tuesday said it would pay back the entire 55.8 million euros ($57.2 million) claimed by the national fund that finances living assistance for the elderly and disabled.
“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 Caisse de Solidarité pour l’Autonomie (CNSA),” the group said in a statement.
The reimbursement will lead to an additional provision of 30.1 million euros in the year to Dec.
31, 2022.
Shares in Orpea, one of Europe’s biggest for-profit care home groups, rose 4.8% in early trade.
The group, in turmoil since the publication of “Les Fossoyeurs”, or The Gravediggers, by journalist Victor Castanet earlier this year, said in June an independent audit had found evidence of financial wrongdoing, including inflated labour expenses and suspiciously large payments to third parties.
Orpea had said in August it would reimburse 25.7 million euros, corresponding to a portion of the amount, for any public grants that had not been appropriately requested, paid or used.
Dozens of Orpea’s retirement homes across France were targeted by police raids last week as part of a judicial investigation over allegations of malpractice and possible mistreatment of nursing home residents.
($1 = 0.9755 euros)
(Reporting by Diana Mandiá; Editing by Kirsten Donovan and Louise Heavens)
