SPOKANE, WA — A Brewster physician has been sentenced to federal prison after admitting to altering recalled medical devices and billing Medicaid for them as new equipment, according to the U.S. Attorney’s Office for the Eastern District of Washington.

Dr. Eric Edward Haeger, 57, was sentenced March 25 by U.S. District Judge Rebecca L. Pennell to one year and one day in prison, followed by one year of supervised release. He was also ordered to pay a $60,000 fine and $349,272.79 in restitution.

The case centers on recalled CPAP and BiPAP machines originally flagged in a 2021 safety recall by Philips Respironics due to potential health risks tied to foam components inside the devices. The recall warned of possible serious health consequences, including respiratory issues and exposure to potentially toxic materials.

According to court documents, between July 2021 and July 2023, Haeger purchased more than 500 used and recalled devices through online sellers. Prosecutors said he and others working under his direction dismantled the machines and attempted to remove the recalled foam using basic tools before reassembling them in non-medical environments.

Those devices were then distributed to Medicaid patients through his clinic, Central Washington Medical Associates, while being billed to Medicaid as new and properly functioning equipment, investigators said.

The court determined that at least 440 altered devices were provided to patients and billed for more than $600,000, with Medicaid paying $439,272.79. Federal prosecutors argued the scope of the conduct may have been greater.

Officials said the altered devices posed potential risks, including exposure to harmful particles and possible malfunctions such as overheating due to changes from their original design.

In handing down the sentence, Judge Pennell described the conduct as ongoing and extensive, noting concerns about patient safety and the impact on trust in medical providers.

Federal and state officials involved in the case said the actions prioritized financial gain over patient care, particularly affecting individuals relying on Medicaid.

The investigation involved the Food and Drug Administration Office of Criminal Investigations, the Washington State Medicaid Fraud Control Division, the U.S. Department of Health and Human Services Office of Inspector General, and the Federal Bureau of Investigation. The case was prosecuted by the U.S. Attorney’s Office.