Major Medicare Fraud Conviction: CEO of HealthSplash Charged

The Department of Justice (DOJ) recently announced the conviction of Brett Blackman, CEO of HealthSplash, in a major Medicare fraud case involving healthcare software. In collaboration with others, Blackman engaged in fraudulent schemes exploiting Medicare beneficiaries by promoting unnecessary medical products, such as orthotic braces.

The fraudulent operations were primarily conducted through the platform DMERx, acquired by HealthSplash in 2017. DMERx facilitated questionable kickbacks with telemedicine professionals and pharmacies, resulting in deceptive billing practices targeting Medicare. The DOJ revealed that fabricated medical orders falsely indicated patient examinations, despite minimal real-world doctor-patient interactions.

The scam resulted in over $1 billion billed to Medicare and federal healthcare programs, with more than $450 million improperly paid out. Blackman, having publicly flaunted his ill-gained wealth, now faces multiple charges, including healthcare fraud and conspiracy. His potential sentencing includes up to 20 years for wire fraud charges alone, with additional penalties for related offenses.

The DOJ remains committed to addressing healthcare fraud, a key focus area. The formation of a Fraud Division in April 2026 underscores ongoing federal efforts to protect taxpayer funds and enforce accountability in the healthcare sector. Blackman's case serves as a critical reminder of the importance of regulatory compliance and diligent oversight within the insurance and healthcare industries.