Dr. Daniel R. Canchola, a physician from Flower Mound, Texas, has been sentenced to more than 10 years in federal prison for his involvement in a scheme to defraud Medicare. According to the U.S. Department of Justice (DOJ), Canchola signed fraudulent doctor’s orders for durable medical equipment (DME) and cancer genetic tests, resulting in over $54 million in false claims submitted to Medicare. The scheme targeted vulnerable beneficiaries, leading to significant financial losses for the federal health insurance program.
The Scheme: Fraudulent Orders and Kickbacks
From August 2018 through April 2019, Canchola signed off on doctor’s orders that authorized unnecessary medical tests and equipment. These orders were used by telemarketing companies to deceive Medicare beneficiaries into receiving services they didn’t need or use. In exchange for each fraudulent order, Canchola received about $30 in kickbacks—totaling more than $466,000. The beneficiaries involved never saw, spoke to, or were treated by Canchola, and the orders were not medically justified.
This practice is part of a larger trend of healthcare fraud, which often involves criminal networks targeting Medicare beneficiaries for personal financial gain. In this case, Medicare paid out millions in claims for services that were not medically necessary.
Wider Crackdown on Healthcare Fraud
Canchola’s sentencing comes as part of a broader national effort to combat Medicare fraud. In recent months, the DOJ has charged nearly 200 individuals—including 76 doctors and healthcare professionals—in connection with fraudulent schemes totaling billions of dollars in false Medicare claims. In one of the largest cases, fraudulent claims involving wound grafts and fake medical procedures cost Medicare over $600 million.
The DOJ’s Health Care Fraud Unit, which oversees these investigations, has been instrumental in exposing and prosecuting fraudulent schemes that rob taxpayers and endanger the integrity of the healthcare system. As open enrollment for Medicare approaches each year, experts warn beneficiaries to be vigilant against scams that could involve identity theft or false medical claims.
