A Washington physician has been sentenced to one year and a day in federal prison for purchasing recalled CPAP and BiPAP devices, attempting to remove defective foam components and billing Medicaid for the adulterated equipment as if it were new, the Justice Department said in a March 27 news release.
Between July 2021 and July 2023, Eric Haeger, MD, purchased more than 500 used and recalled devices through online resellers. Dr. Haeger and others, including his own children, would open the devices, attempt to remove recalled foam using screwdrivers and hooks, reassemble them and distribute them to Medicaid patients at his sleep clinic, Brewer-based Central Washington Medical Associates. The clinic then billed Medicaid more than $600,000 for the devices, misrepresenting them as new.
The recalled devices were originally flagged in June 2021 by Philips Respironics due to potential health risks associated with sound abatement foam, including inflammatory response, asthma and toxic or cancer-causing effects. Dr. Haeger was also ordered to pay a $60,000 fine and $349,273 in restitution.
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