Doctor Sentenced for Role in $1.9M Medicare DME Fraud Scheme

CONCORD, New Hampshire—Former New Hampshire physician Steven Powell, 56, was sentenced to 12 months and a day in federal prison on one count of healthcare fraud, in connection with a scheme to defraud Medicare by prescribing medical equipment without ever seeing, speaking to or otherwise examining patients. 

Powell, who now lives in Georgia, was sentenced by U.S. District Court Judge Paul Barbadoro. According to court documents and statements made in court, Powell, a licensed psychiatrist, signed hundreds of medically unnecessary orders for durable medical equipment (DME), including knee, wrist, back and shoulder braces. He did not examine, speak with or meaningfully evaluate the Medicare beneficiaries for whom he purported to prescribe these devices. Instead, he approved large volumes of pre‑populated brace orders within minutes, making meaningful medical review impossible. These orders enabled DME suppliers to submit approximately 1,400 fraudulent claims to Medicare totaling more than $1.9 million in claims, of which Medicare paid $761,202.75.

“This defendant abused his position and his medical license in order to defraud taxpayers with nearly $2 million in bogus medical bills, and will now spend time behind bars,” said Erin Creegan, U.S. Attorney for the District of New Hampshire. “The U.S. Attorney’s office will continue to pursue accountability for those who commit fraud and steal from the taxpayers, and strict penalties for those who siphon precious healthcare resources meant to help elderly and low-income patients.” 

Between December 2018 and March 2019, Powell signed brace orders for more than 500 Medicare beneficiaries, often approving multiple braces per patient. In one instance, he completed more than 100 pages requiring 75 signatures in just over a minute, further demonstrating the absence of any legitimate medical assessment, the court determined.    

In addition to the prison sentence, Powell was ordered to pay $761,202.75 in restitution to the Medicare program.   

“Dr. Steven Powell abandoned all pretense of professional ethics when he caused nearly $2 million in false Medicare bills from bogus prescriptions for medical equipment,” said Ted E. Docks, special agent in charge of the FBI’s Boston Division. “By looting these funds, this physician not only strained the system, but cheated the taxpayers who fund it. Know that your FBI is committed to fighting healthcare fraud, one case at a time, because every dollar lost to bogus billing is a dollar less to use for legitimate treatments and services.”