Résidence Plaisance des Îles hopes to avoid bankruptcy – Portail des Îles de la Madeleine

Résidence Plaisance des Îles is trying to avoid bankruptcy, but nothing is less certain. Quebec recently placed the CHSLD under provisional administration due to financial problems. The situation is not without consequences for the future of the private seniors’ residence (RPA) of 143 apartments which is located under the same roof.

Currently, Résidence Plaisance des Îles, which still administers the component RPAis in discussion with the provisional administration of CHSLD to obtain payment of rent and amounts related to service agreements, in order to maintain its activities.

Résidence Plaisance des Îles offers, among other things, food and housekeeping services at CHSLD under service agreements.

We need the contribution of CHSLD be paid, as provided for in the agreements, so that the private seniors’ residence can continue to operate.

We are waiting, we are in discussionsreports Mr. Fournier. The CISSS des Îles told us that the agreements would be honored, so we are very optimistic.

According to Mr. Fournier, the closure of the RPA and the relocation of its approximately 155 tenants is not a scenario currently envisaged.

It seems impossible that Résidence Plaisance des Îles closes. On the Magdalen Islands, we have two thirds of the places in RPAso it would be catastrophic.

The president of the organization reports that all stakeholders in the matter, whether the Ministry of Health and Social Services, the CISSS of the Islands or the creditors, working to ensure RPA activities continue .

Résidence Plaisance des Îles believes that it could avoid bankruptcy if the CHSLD continues to pay for the services rendered by the RPA.

The analyzes and forecasts that we have made indicate that the RPA can exist without CHSLDmaintains Mr. Fournier. Currently, the financial burden is the use of independent labor in CHSLD.

The chairman of the board of directors of Résidence Plaisance des Îles, Louis Fournier. Photo: - / Isabelle Larose

The shutter CHSLD accumulated a debt of $6.2 million to Résidences Plaisance des Îles, in particular due to additional costs linked to hiring independent labor.

Quebec has advanced sums to the organization in recent years to fill the budget deficit, but the provincial government recently stopped granting this additional funding and placed the CHSLD under provisional administration, which is not without consequences for the future of the component RPA.

Around 155 people live in the 143 apartments of the RPA at Résidence Plaisance des Îles. Photo: - / Isabelle Larose

Asked about his intentions to respect the service agreements with the RPAthe Ministry of Health and Social Services remains evasive.

An analysis of the financial situation is underway to determine the actions to be taken with the aim of ensuring continuity of care for users.explains the public relations specialist, Marie-Pierre Blier, by email.

Building ownership and future management

According to the president of Résidence Plaisance des Îles, the organization’s creditors have initiated the process of seizing the imposing building which houses the CHSLD and the RPAas requested by Quebec.

For the moment, the non-profit organization has not sheltered itself from its creditors, but it is not impossible that it will be forced to do so if it is no longer able to to pay for current expenses.

We are in discussions with financial institutions, it is possible that we will be placed in receivership, but we have the certainty from our lenders that activities will continue as normal.mentions Louis Fournier.

The receiver is appointed to take possession and sell the secured assets for the purpose of repaying debts. A receiver manager may also be appointed to manage the business until it is sold.

Résidence Plaisance des Îles wishes to continue to manage the RPA, but the organization must have the necessary liquidity to continue its activities. Photo: - / Isabelle Larose

The president of Résidence Plaisance des Îles indicates that residents and employees were met to inform them of the situation.

Uncertainty for employees

The precarious financial situation of Résidences Plaisance des Îles causes concern for the forty employees of the RPA.

And at RPA changes hands or ownership, or that it is not solvent, this risks putting jobs at riskrecognizes the regional vice-president of the Federation of Health and Social Services (FSSS) of the Confederation of National Unions (CSN), Gaétan Leblanc.

Gaétan Leblanc is regional vice-president for the Federation of Health and Social Services (FSSS) of the CSN. Photo: - / Isabelle Larose

Mr. Leblanc still believes in the viability of the RPAif the shutter CHSLD is supported by Quebec.

The shutter RPA seems viable, according to the figures we have. This means that there is a way to agree to keep jobs in placehe believes.

The union party believes that Résidence Plaisance des Îles should continue to administer the private seniors’ residence, because it believes that the organization’s financial problems are not caused by poor management, but by additional labor costs. independent work related to CHSLD.

If the customers are satisfied and our employees manage to sign a good agreement, I don’t see why we would change administrators, says Mr. Leblanc. It is a non-profit organization. The idea is not to make profits, but to provide services to the population.

Mr. Leblanc emphasizes that employees of the RPAwho unionized in May 2023, are still without a collective agreement and no meeting with the employer has taken place since June.

A conciliator was appointed to allow negotiations to resume.