Extendicare Health Services, a longterm-care provider, and subsidiary Progressive Step Corp., a rehabilitation services company, will pay $38 million

to the federal government and eight states to resolve allegations that they billed Medicare and Medicaid for substandard services and unreasonable rehabilitation therapy services, the U.S. Justice Department announced last week, calling the agreement its largest failure-of-care settlement. Delaware-based Extendicare, which manages 156 senior-care facilities in 11 states, also entered into a five-year corporate integrity agreement this month with HHS’ Office of the Inspector General to improve staffing and meet standards to better deliver care. The company said in a release that it denied engaging in any illegal conduct and that it agreed to the settlement without any admission of wrongdoing.