Nursing Home Chain To Pay $38M In US Settlement

A nursing home chain has agreed to pay $38 million to resolve allegations that it billed Medicare and Medicaid for substandard care. The Justice Department announced the settlement Friday with Extendicare Health Services Inc. and its subsidiary, Progressive Step Corporation. The federal government accused the company of substandard care, between 2007 and 2013, in 33 nursing homes in eight states: Ohio, Pennsylvania, Wisconsin, Indiana, Kentucky, Michigan, Minnesota and Washington. Tim Lukenda is president and chief executive of Extendicare. He says in a statement the company is "pleased to finally put this matter behind us." The company is also entering into a five-year compliance agreement with the inspector general's office at the Department of Health and Human Services.