Troubled Medical Group Avec Sees Leadership Shakeup Amid Financial Woes

The embattled medical and medico-social group Avec, grappling with significant financial difficulties and employing approximately 10,000 individuals, has announced a major leadership change. Bernard Bensaïd, the controversial founder of the group, has stepped down from his role as CEO. His successor, Adam Oubuih, has been appointed to steer the organization through its current crisis and lead its transformation.

The announcement was made via a press release issued by Avec, outlining the company’s ambitious plans for a complete overhaul. Oubuih, in his statement, emphasized the goal of "entirely refounding the group and its 300 establishments to make it a major player in the social and solidarity economy." This declaration signals a significant shift in direction for Avec, potentially moving away from its previous operational model and towards a more socially responsible and community-focused approach.

Bensaïd’s departure from the CEO position follows his earlier resignation as chairman of the group in March. Patrick François, a former senior civil servant and regional head of the Caisse des Dépôts, had already assumed the chairmanship, further indicating a move towards greater oversight and potential restructuring within the organization.

Avec’s structure is complex, comprising a network of commercial companies and associations operating in the medical and medico-social sectors. At its peak, the group employed as many as 12,000 people. However, a large proportion of its entities are currently undergoing judicial reorganization, highlighting the severity of the financial challenges facing the organization.

One of Avec’s key holdings is Amapa, an association based in Moselle that provides home care services to elderly individuals. Amapa alone employs 4,500 staff, making it a significant component of Avec’s overall operations. The association’s future is closely tied to the fate of the parent group, raising concerns about the potential impact on the elderly care sector in the region.

In addition to its involvement in home care, Avec also owns five clinics across France. One notable case involves the Groupe Hospitalier Mutualiste de Grenoble, a hospital group whose management was removed from Avec and placed under the control of two administrators. This decision was prompted by allegations of mismanagement against Bernard Bensaïd, further contributing to the negative publicity surrounding the group.

Bensaïd’s legal troubles extend beyond the Grenoble hospital case. He was formally charged in early 2023 with "illegal taking of interest" and "embezzlement of public funds" in connection with these issues. The charges underscore the serious nature of the allegations against him and the potential legal repercussions he faces.

The Avec case is being closely monitored by the Cri (Comité interministériel de restructuration industrielle), an interministerial committee responsible for overseeing industrial restructuring efforts. In an attempt to salvage the group, Bernard Bensaïd has proposed a restructuring plan that hinges on his complete withdrawal from all governance roles within Avec. As part of the plan, he has also offered to inject €35 million of his own capital into the company to facilitate its recapitalization.

The Tribunal de Commerce de Bobigny is scheduled to hold a closed-door hearing on Wednesday to review Bensaïd’s proposed recovery plan. The court’s decision will be critical in determining the future of Avec, with the options ranging from approving the restructuring plan and allowing the group to continue operating, to ordering its liquidation. A swift decision is expected following the hearing, given the urgency of the situation and the potential impact on employees, patients, and the broader healthcare sector.

The newly appointed CEO, Adam Oubuih, brings a strong academic and professional background to the role. A graduate of ESSEC Business School and a former student of the École Nationale d’Administration (ENA), he possesses a deep understanding of business strategy, finance, and public administration. Prior to joining Avec, Oubuih served as the head of Victoires Haussmann, a real estate asset management company. He also has experience working at the Caisse des Dépôts, providing him with valuable insights into the financial landscape and the role of public institutions in supporting economic development.

Oubuih’s appointment is viewed by many as a strategic move to bring fresh leadership and a new perspective to Avec. His experience in asset management and his understanding of the social and solidarity economy could prove crucial in navigating the group’s complex financial situation and implementing its ambitious restructuring plans. His challenge lies in balancing the need for financial stability with the group’s commitment to providing quality medical and social services, while also addressing the concerns of employees, patients, and other stakeholders.

The future of Avec remains uncertain, but the leadership changes and the proposed restructuring plan represent a significant turning point for the troubled group. Whether it can successfully overcome its financial challenges and transform itself into a thriving player in the social and solidarity economy remains to be seen, but the appointment of Adam Oubuih signals a clear intention to pursue a new path forward. The upcoming decision by the Tribunal de Commerce de Bobigny will be a defining moment, setting the stage for Avec’s next chapter.