Physician sentenced to prison for Medicaid fraud involving altered medical devices

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A Brewster, Washington physician has been sentenced to one year and one day in federal prison for purchasing over 500 recalled CPAP and BiPAP machines, altering them to remove safety components, and then billing Medicaid as if they were new and properly functioning devices. The altered machines were distributed to Medicaid patients, exposing them to potential health risks from the changes made to the original device designs.

Why it matters

This case highlights the serious consequences that can arise when medical providers prioritize financial gain over patient safety and care. The actions of Dr. Haeger eroded public trust in the medical system and put vulnerable Medicaid patients at risk of harm from potentially malfunctioning and unsafe medical equipment.

The details

According to court documents, between July 2021 and July 2023, Dr. Haeger purchased over 500 used and recalled CPAP and BiPAP machines through online sellers. He and his staff then dismantled the machines and attempted to remove the recalled foam components using basic tools before reassembling them in non-medical environments. These altered devices were then distributed to Medicaid patients through Dr. Haeger's clinic, Central Washington Medical Associates, while being billed to Medicaid as new and properly functioning equipment.

• On March 25, 2026, Dr. Haeger was sentenced by U.S. District Judge Rebecca L. Pennell.
• The original Philips Respironics recall of the CPAP and BiPAP machines occurred in 2021.

What they’re saying

What’s next

Federal and state authorities continue to investigate the full scope of Dr. Haeger's actions and the potential impact on Medicaid patients who received the altered medical devices.