HBI Deals+Insights / News

A bientôt Korian, bonjour Clariane!

When an organisation is marred by a reputational scandal so harmful that it jeopardises the bottom line, often a corporate rebrand is the only solution. This course of action is nothing new and there are countless examples of successful makeovers across industries, and health care is no different.

Victor Castanet’s book ‘The Gravediggers’, was aimed specifically at French nursing home giant Orpea, but it subsequently led to a scandal permeating the entire French nursing home sector.

Following months of bad press related to financial mismanagement and poor treatment of residents, last week Orpea’s main rival Korian took the plunge. It announced that from July 1 (following its June 15 general meeting) it will be rebranded as a purpose-driven B Corp with a whole new name – Clariane.

Accompanying the name change are ten initiatives outlined by the operator. To name a few: a move to more locally produced and decarbonised energy, a promise to boost the economies of the regions it operates in, as well as greater incorporation of technology into care delivery. 

Employees will be offered better training and career advancement opportunities as well as stronger health and wellbeing support from the operator and, to top it all off, Korian has pledged to reinvest at least 50% of company profits into schemes that support the care mission.

Sounds good! But will the transformation have the desired effect?

Time will tell whether the makeover is skin deep or whether it will help restore Korian’s reputation, but what the rebrand does do is confirm the sheer scale of the scandal’s impact on the sector. At best it is an acknowledgement of the scandal’s severity. At worst, it can be read as an admission of grave fault.

So could other French operators follow suit and try for a glorious comeback?

Multiple sources over the past year have suggested to HBI that in time, Orpea could be next in line for a makeover. Given the similar scale damage, some believe it inevitable that Orpea will also have to rebrand at some point. Some other groups such as Domidep don’t brand individual homes and so won’t be forced to change their name. And major rival DomusVi isn’t a listed company, so a rebrand is unlikely.

When Facebook was unable to shake the stench of scandal following the violation of consumer privacy laws and Cambridge Analytica, it became Meta.

When Tour de France champion cyclist Lance Armstrong’s doping and drug trafficking was exposed, his eponymously named foundation became the Livestrong Foundation.

By no means will slapping on a brand-spanking new name fix years of broken trust, but it is certainly a start. After all, history has proven more than once that in the long run, it can work.

 

Edit: Since writing this blog we have spoken to Korian. A spokesperson strongly denied that the name change constitutes a rebrand, saying that the move is unrelated to the EHPAD scandal and was a pre-planned part of the operator’s ESG road map years in the making. Click here to read more on this story.
We would welcome your thoughts on this story. Email your views to Michaila Byrne or call 0207 183 3779.