Healthcare Software Company Owner Convicted in $1B Medicare Fraud Conspiracy

A federal jury in Florida has convicted the owner of a healthcare software company for his role in a massive $1 billion Medicare fraud conspiracy involving fraudulent doctors’ orders, illegal kickbacks, and medically unnecessary durable medical equipment. According to the Department of Justice, Brett Blackman, founder and owner of HealthSplash and operator of the DMERx platform, helped orchestrate a nationwide scheme that generated false prescriptions and doctors’ orders used to bill Medicare and other federal healthcare programs for unnecessary braces, pain creams, and related medical products.

Federal prosecutors alleged that the conspiracy relied on offshore call centers, deceptive marketing campaigns, and purported telemedicine consultations to pressure Medicare beneficiaries into accepting unnecessary medical equipment. Investigators said physicians were paid kickbacks to sign fraudulent orders without meaningful patient interaction, while pharmacies and durable medical equipment suppliers used the DMERx platform to submit false claims. Authorities estimate that the scheme generated more than $1 billion in fraudulent billings, with federal healthcare programs paying out hundreds of millions of dollars before investigators intervened.

The conviction highlights the government’s continued focus on prosecuting large-scale healthcare fraud and kickback schemes involving telemedicine and durable medical equipment billing. It also underscores the critical role that whistleblowers and qui tam actions can play in identifying fraudulent conduct targeting federal healthcare programs and vulnerable Medicare beneficiaries.