Four Washington state sleep diagnostic centers are closing following the sentencing of their physician owner on federal fraud charges, the Columbia Basin Herald reported April 9.
Central Washington Sleep Diagnostic Center announced it will close all four of its locations — in Moses Lake, Spokane Valley, Brewster and Wenatchee — effective April 30. The closure follows the March 25 sentencing of Eric Haeger, MD, to 366 days in federal prison for purchasing recalled CPAP and BiPAP devices, attempting to remove defective foam components and billing Medicaid for the adulterated equipment as new.
Between July 2021 and July 2023, Dr. Haeger purchased more than 500 used and recalled devices through online resellers. He had the foam removed using screwdrivers and other tools in non-sterile environments and distributed them to Medicaid patients.
The devices were then billed to Medicaid as new, generating more than $600,000 in claims. Dr. Haeger was also ordered to pay a $60,000 fine and approximately $350,000 in restitution.
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