Central Washington Doctor Sentenced to Federal Prison for Billing Medicaid for Recalled Breathing Devices

Court documents show that between July 2021 and July 2023, Haeger purchased more than 500 used and recalled CPAP and BiPAP machines online. The devices had been subject to a 2021 Philips Respironics recall after they were linked to potential health risks, including toxic and cancer-causing effects. Prosecutors said Haeger, along with others including his children, dismantled the machines and tried to remove the defective foam using tools in non-sterile environments before putting them back together.

The reassembled devices were then distributed to patients through his clinic, Central Washington Medical Associates, with staff billing Medicaid as though the machines were new and fully functional. The court found that 440 devices were provided to patients and billed at more than $600,000, with Medicaid paying out $439,272.79. Investigators said the altered machines exposed patients to potential harm, including harmful particles and the risk of malfunction.

Judge Pennell said at sentencing that Haeger’s conduct was “ongoing and extensive” and had damaged public trust in medicine. First Assistant U.S. Attorney Pete Serrano was unsparing. “Dr. Haeger violated the trust of his patients,” he said. “He prioritized profit over patient health and safety.”

The investigation was conducted by the FDA, FBI, and the Health and Human Services Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Jeremy J. Kelley.