Ehpad: the Medicharme group placed in compulsory liquidation

The Nanterre commercial court on Thursday placed the private nursing home group Medicharme in liquidation, a procedure which should make it possible to find buyers for the forty establishments, which continue their activity, against a backdrop of crisis in the sector model. “Existing or expected takeover offers will be subject to an in-depth analysis over the next three weeks,” Medicharme said in a press release. They will be examined by the courts during a hearing on March 21.

The objective is to “find solutions for as many establishments as possible, in the interest of residents, employees and landlords”, Delphine Mainguy, who arrived at the head of Medicharme in 2022, said on Monday, shortly before the revocation of the former president and founder of the group, Patrick Boulard. In financial difficulties, the group, which manages 43 establishments in France, has 1,200 employees and offers more than 2,000 beds, indicated Monday that it intended to ask the courts for the opening of a judicial liquidation procedure with the maintenance of its activity.

Also read: Professor Claude Jeandel: “We need to review the nursing home model”

Among the 43 establishments, there are 34 accommodation establishments for dependent elderly people (Ehpad), 7 senior service residences, a non-medical retirement home (Ehpa) as well as a medical reception home (FAM). Medicharme, owned by the English investment fund G-Square, faces a degraded financial situation due to an increase in costs due to inflation and the low occupancy rate of its establishments. A situation faced by many nursing homes in the public, associative or private sector.

Its request for placement in compulsory liquidation follows the opening in November of a confidential conciliation procedure, associated with a “prepack transfer” system, which makes it possible to accelerate the timetable by arriving before the courts with already several projects of reprise. The buyers will be able to buy the establishments for a symbolic price and will not have to pay off their debts. Medicharme is also the subject of two administrative investigations, the conclusions of which are expected in early 2024.

The General Inspectorate of Finance (IGF) and that of Social Affairs (Igas) were responsible for examining, among other things, the group's “commercial and financial practices”, its “managerial practices” as well as the “effective presence time staff” to residents.