DOJ: Former New Hampshire Doctor Sentenced to Year in Prison for Role in $1.9 Million Medicare Fraud Scheme

• Powell signed hundreds of unnecessary orders for durable medical equipment without examining patients, enabling DME suppliers to submit approximately 1,400 fraudulent claims.
• He was ordered to pay $761,202.75 in restitution to Medicare after approving brace orders for more than 500 beneficiaries between December 2018 and March 2019.

Steven Powell, a former New Hampshire psychiatrist, was sentenced to federal prison for health care fraud after signing hundreds of medically unnecessary orders for durable medical equipment, such as braces, without examining or evaluating patients. These actions enabled DME suppliers to submit about 1,400 fraudulent Medicare claims totaling more than $1.9 million, with Medicare paying $761,202.75.

Between December 2018 and March 2019, Powell approved brace orders for over 500 Medicare beneficiaries, often multiple braces per patient. In one instance, he completed more than 100 pages requiring 75 signatures in just over a minute, demonstrating a lack of legitimate medical assessment. He must pay $761,202.75 in restitution to Medicare.

• $1.9 million total fraudulent Medicare claims
• 1,400 fraudulent claims submitted
• $761,202.75 Medicare paid for fraudulent claims

• Review brace orders and DME claims for patterns similar to Powell's approval of more than 100 pages requiring 75 signatures in just over a minute.
• Audit Medicare beneficiary records for instances of multiple braces per patient, as seen in Powell's orders for more than 500 beneficiaries.
• Cross-check DME supplier claims against physician order review times to detect approval of large volumes of pre-populated orders within minutes.

This case highlights the risk of fraudulent medical equipment orders facilitated by physicians who bypass legitimate patient evaluations. Such schemes can result in significant financial losses for Medicare and undermine the integrity of federal health care programs. Compliance officers must be vigilant for rapid, bulk approvals of medical equipment orders and ensure robust controls to detect and prevent similar fraud, protecting both program resources and patient care standards.