Psychiatrist receives prison sentence for signing unsupported DME orders
Oct 18, 2026 edition · GC-2026-0350 · Published 2026-10-18 · Version 1 · Final
Steven Powell received 12 months and a day in prison after signing brace orders without evaluating beneficiaries. The scheme generated more than $1.9 million in Medicare claims; $761,202.75 was paid and ordered as restitution. Rapid signing of prefilled orders was central to the conduct.
What happened
On October 13, former New Hampshire physician Steven Powell was sentenced to 12 months and a day in federal prison on one count of healthcare fraud. The licensed psychiatrist prescribed durable medical equipment without seeing, speaking with, or otherwise meaningfully evaluating the beneficiaries. His orders supported approximately 1,400 fraudulent Medicare claims totaling more than $1.9 million. Medicare paid $761,202.75, and the court ordered restitution in that same amount.
Between December 2018 and March 2019, Powell signed brace orders for more than 500 beneficiaries, often approving multiple braces per person. DOJ described prepopulated orders approved in volumes and timeframes incompatible with meaningful review. In one example, he completed more than 100 pages requiring 75 signatures in just over a minute. The case therefore connects the authenticity of the clinical assessment with the timing and pattern of electronic approvals, rather than treating a signed order alone as sufficient support.
Scope and timing
- Authority status
- Final
- Applicability
- Operationally relevant
- Audience
- Health systems, Provider networks
- Jurisdiction
- Federal
Why it matters
Order signatures can conceal an absent clinical assessment. DME suppliers and clinical networks need evidence that a prescriber actually evaluated the beneficiary and supported each ordered item.
Recommended action
Review high-volume DME ordering relationships, confirm encounter documentation and clinical support, and investigate implausibly rapid approvals or multiple-brace patterns before relying on signed orders.
Case details
- agencies
- DOJ, FBI, HHS-OIG
- entities
- Steven Powell
- action Type
- Criminal resolution
- event Date
- 2026-10-13
- alleged Conduct
- Signing medically unnecessary DME orders without meaningful beneficiary evaluation, supporting fraudulent Medicare claims.
- resolution
- Sentenced to 12 months and a day in prison and ordered to pay $761,202.75 restitution. More than $1.9 million was claimed; $761,202.75 was paid.
Operational lessons
- Validate the underlying clinical encounter and necessity of each item.
- Use signature timing and ordering-pattern anomalies to identify unsupported approvals.
Implementation playbook
- Recommended internal target: identify DME prescribers with unusually rapid approvals, repeated templates or multiple items per beneficiary and select records for review. Compliance · Due 2026-10-23
- Recommended internal target: reconcile selected orders with actual encounters, medical necessity and beneficiary confirmation; escalate unsupported claims for counsel-directed assessment. Clinical Operations · Due 2026-10-30
Sources
- DOJ official October 13 press-release API, page 0Official · U.S. Department of Justice
Complete edition and supplemental material
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