What can be done for padded bills? I've been battling an ALF for almost a year.

I paid in advance for 6 weeks of respite care. I worked with the executive director of the facility and I signed a contract. I have since been billed for the amounts I prepaid plus an extra level of assisted living and charges for the month following the patient's discharge. I have had threats of a collection agency. That agency agreed with me and did not pursue the case. I also am due a refund of $600 from the move-in fee. I noticed that they appropriated that amount and subtracted it from the padded bill. I have complained through the suggested contacts. My next step appears to be the State. This situation is deplorable and there is obvious fraud or extreme incompetence. Can this be cleared up for me?