Specialist
Former executive at Groupe Maisons de Famille
Agenda
- French care home market update following The Gravediggers scandal – impact on Korian (PAR: KORI), Orpea (PAR: ORP), DomusVi and Colisée (STO: EQT)
- DomusVi’s positioning, occupancy trends and staffing challenge mitigation
- Key care home market trends and developments, including assisted living and international expansion
- DomusVi's growth strategy and European M&A outlook
Questions
1.
What’s the current status of the scandal in the French care home market involving The Gravediggers book and litigations against two key players, Orpea and Korian? Where do these cases stand?
2.
What are the repercussions of the scandals on companies such as DomusVi? Are authorities coming in more to check on the centres? Could there be an enhancement of regulation?
3.
Could customers be more hesitant in using care homes due to the scandal and players’ bad reputations? How are levels of occupancy for companies such as DomusVi, Orpea and Korian trending after the scandal?
4.
Has the scandal impacted the total number of people deciding to go into a nursing home? Are customers switching into other providers rather than Orpea?
5.
We have mentioned Orpea and Korian. Do you think that the main reputational impact is only on Orpea or might Korian and other players also suffer?
6.
How much of a staff shortage could Orpea suffer after the scandal, in terms of estimated labour per person? Which providers did staff move to?
7.
Which players are better-placed to retain staff currently? How is DomusVi placed in staff acquisition?
8.
How do you assess the staffing issue’s impact on DomusVi? Might it be implementing programmes to retain and attract staff, or looking to hire outside of France? How can it counteract these challenges?
9.
How should we understand staff cost increases in the next 2-3 years, considering the shortage of staff and the inflationary pressures of this macroeconomic environment? From my understanding, staff cost is one of the highest costs for the care homes.
10.
What percentage of DomusVi’s staff is funded publicly vs privately?
11.
You mentioned that in Paris there is a different type of service available and so labour cost varies. Are any areas in France more appealing to players because of that?
12.
We mentioned that DomusVi and Colisée were the third and fourth largest players in the French market. How might their market share positioning have changed, considering what’s happening to Orpea with higher costs and losing staff and patients?
13.
When could a sale of DomusVi be most likely to happen?
14.
You mentioned the Netherlands as a key target for DomusVi’s international expansion. What other geographies might be likely, where the company would have good market share?
15.
How could DomusVi further develop in France, considering there are not many assets left to target?
16.
How would you assess DomusVi’s assisted living provision? What stage is its delivery in?
17.
Why have more French players not moved into assisted living or home care? What are the barriers to entry? Why has Orpea not got a bigger offering, considering its size and revenue in France? Many such companies have a lot of capital to deploy, as they were quite profitable before the pandemic.
18.
How different are margins between standard care home operations and assisted living or home care?
19.
What could be DomusVi’s occupancy rates for this year and the next 2-3 years?
20.
How might the French government support the elderly population increase via reimbursement in the next 3-5 years?
