Texas physician gets 10 years in prison for $54M Medicare fraud scheme

A Texas physician was sentenced to 10 years and one month in prison for his role in a scheme to defraud Medicare by prescribing durable medical equipment without having any contact with the patients. 

Daniel Canchola, MD, 54, of Flower Mound, Texas, was also ordered to pay more than $34 million in restitution, according to an Oct. 29 Justice Department news release. Dr. Canchola was sentenced after pleading guilty in 2022 to conspiracy to commit wire fraud. 

The Justice Department said that Dr. Canchola agreed to electronically sign physicians' orders which he knew were used to submit fraudulent claims to Medicare. From August 2018 through April 2019, he received approximately $30 for each order he signed, totaling more than $466,000 in kickbacks.

Dr. Canchola prescribed unnecessary durable medical equipment and cancer genetic testing for Medicare beneficiaries who were targeted by telemarketing campaigns and at health fairs.

The orders he signed were used to submit more than $54 million in false claims to Medicare.

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