A Doctor, Recalled Devices, and a $600K Scheme That Misled Patients

A doctor in Washington was sentenced to a year in jail for a scheme involving recalled Philips CPAP machines and ventilators. Both support life; CPAPs help people with sleep apnea, which can lead to not only daytime sleepiness but also heart attacks and other health issues.

Sleep specialist Eric Haeger, MD, pleaded guilty to adulterating and misbranding medical devices with the intent to defraud or mislead, according to federal prosecutors. Prosecutors said that between July 2021 and July 2023, Dr. Haeger bought more than 500 used and recalled Philips continuous positive airway pressure (CPAP) and bilevel positive airway pressure (BiPAP) devices through online resellers.

"Dr. Haeger violated the trust of his patients who were misled into believing Dr. Haeger was providing them with safe and reliable medical equipment,” stated First Assistant United States Attorney Pete Serrano in a news release. “Instead, Dr. Haeger devised an extensive scheme to defraud his patients and Medicaid, prioritizing profit over patient health and safety. Conduct that puts profits over patients is egregious, and my office will continue to prosecute such cases.”

The 2023 recall was designated as Class I due to the risk of respiratory failure, heart failure, severe injury, or death from using the replacement machines.

Why Were Breathing Machines Recalled?

The CPAP machines were recalled because the polyester-based polyurethane sound abatement foam could degrade and ultimately be inhaled, and could also off-gas certain chemicals.

The 2023 recall was designated as Class I due to the risk of respiratory failure, heart failure, severe injury, or death from using the replacement machines.

A Family Affair

The doctor and some of his family members opened the machines and tried to remove the foam using screwdrivers, hooks, and other tools, and put them back together, prosecutors said.

Defrauding Medicaid Patients

Dr. Haeger provided the devices to Medicaid patients and staff at his clinic, Central Washington Medical Associates. Then he billed Medicaid under false pretenses that they were in good working condition, prosecutors said. The Court concluded that Dr. Haeger had distributed 440 devices that were altered in an unclean environment, billing Medicaid more than $600,000, and ultimately being reimbursed almost $440,000, according to MedPage Today.

Making Restitution

He has to pay a $60,000 fine and nearly $350,000 in restitution.

Stay up-to-date on the FDA's recall of Philips breathing devices during the last few years.