By Katie Coffee Medical Reporter
Prosecutors proved that Brett Blackman of KS, who owned HealthSplash, billed fraudulent Medicare invoices via orthotic braces for 346,000 + people.
A jury found his web platform churned out doctors' orders for braces that Medicare patients did not need, signed by physicians who often never spoke to them.
A jury found his web platform churned out doctors' orders for braces that Medicare patients did not need, signed by physicians who often never spoke to them.
Medicare was billed for orthotic braces for more than 346,000 people through a single online platform, averaging four braces per beneficiary, according to the U.S. Department of Justice. On October 14, the man who owned that platform was sentenced to 19 years in federal prison [1][4].
Brett Blackman, 43, of Johnson County, Kansas, owned and ran HealthSplash, which acquired the software company Power Mobility Doctor Rx, LLC, known as DMERx, in September 2017 [1]. A federal jury in the Southern District of Florida convicted him earlier this year after a 23-day trial [1][2]. Announcing the sentence on October 15, Assistant Attorney General Colin M. McDonald said the prosecution had "dismantled one of the largest telemedicine fraud schemes ever" [1].
Background
Prosecutors described DMERx as an internet-based platform that generated false and fraudulent doctors' orders for durable medical equipment (DME) and prescriptions for other items [1]. Blackman was indicted in 2023 alongside others connected to DMERx, as part of a nationwide federal health care fraud enforcement action [5][6].
His co-defendant Gary Cox, described by the Justice Department as chief executive of DMERx, was convicted at a separate trial in June 2025. In December 2025 he was sentenced to 15 years in prison and ordered to pay more than $452 million in restitution [3].
What the Jury Found
Blackman was convicted of three counts: conspiracy to commit health care fraud and wire fraud; conspiracy to pay and receive health care kickbacks; and conspiracy to defraud the United States and make false statements relating to health care matters [1][2].
According to the Justice Department, the conspirators aggressively targeted hundreds of thousands of Medicare beneficiaries to accept medically unnecessary orthotic braces and other items. Purported telemedicine doctors signed orders produced through DMERx. Prosecutors said these physicians were paid to sign without any meaningful interaction with the patient, and sometimes with no interaction at all [1].
The money moved through referrals. Per the department, co-conspirators linked pharmacies, DME suppliers and marketers with telemedicine companies willing to accept kickbacks and bribes in exchange for signed doctors' orders, and Blackman and others took a cut of those referrals [1].
Prosecutors also said the group used sham contracts and altered orders to avoid Medicare audits, including by deleting references to telemedicine [1]. In one episode described in the release, an undercover agent posing as a Medicare beneficiary was pushed by a foreign call center into accepting several braces. A doctor then signed orders stating that in-person tests had been performed, although, according to the department, that doctor never spoke with the agent [1]. Telehealth has expanded what clinicians can do at a distance; examining a patient nobody has contacted is not yet among them.
The Numbers
The Justice Department reported that the scheme billed Medicare, other federal health care programs and insurers more than $1 billion, and that those payers paid out more than $450 million [1]. More than 1,200 beneficiaries were billed for at least 21 orthotic devices each [1]. That is a level of skeletal support rarely seen outside a suspension bridge.
Readers comparing coverage will notice different totals over the life of the case. The department's December 2025 release on Cox cited more than $360 million paid [3], and figures reported at the time of the 2023 indictment were higher [6]. The figures above are the ones the department reported at Blackman's sentencing.
The Allegations and the Response
Blackman did not plead guilty; he was convicted by a jury [1][2]. The court will determine restitution and forfeiture at a later date [1]. The case was investigated by the HHS Office of Inspector General, the FBI, the VA Office of Inspector General and the Defense Criminal Investigative Service [1].
None of the Justice Department releases or news reports reviewed for this article included a statement from Blackman or his attorneys, and none reported whether he intends to appeal. The court and judge were not named in the sentencing release [1].
Clinical and Patient Implications
For clinicians, the case centers on a familiar document: the signed order. A physician's signature on a DME order or prescription represents a judgment that the item is needed. The Justice Department's account describes physicians paid to supply that signature without examining, or even speaking to, the patient [1].
For patients, the entry point in this case was a phone call. The undercover episode began with a call center pressing a beneficiary to accept braces [1].
The case also involved military health programs. A Defense Criminal Investigative Service official's statement in the release addressed the diversion of TRICARE resources, the military's health program [1].
What Comes Next
Restitution and forfeiture amounts remain to be set by the court [1]. The prosecution was brought by the Health Care Fraud Strike Force, which the department says has charged more than 6,200 defendants who collectively billed federal programs and private insurers more than $45 billion since 2007 [1].
This article is for informational purposes only and is not medical or legal advice. Readers should consult their clinician about their own care.
References
U.S. Department of Justice, Office of Public Affairs. Owner of Health Care Software Company Sentenced to 19 Years in Prison for $1B Medicare Fraud. Press release 26-1205. October 15, 2026. https://www.justice.gov/opa/pr/owner-health-care-software-company-sentenced-19-years-prison-1b-medicare-fraud
U.S. Department of Justice, Office of Public Affairs. Owner of Health Care Software Company Convicted of 1 Billion Dollar Medicare Fraud Conspiracy. Press release 26-492. May 14, 2026. https://www.justice.gov/opa/pr/owner-health-care-software-company-convicted-1-billion-dollar-medicare-fraud-conspiracy
U.S. Department of Justice, Office of Public Affairs. CEO of Health Care Software Company Sentenced for $1B Fraud Conspiracy. Press release 25-1228. December 22, 2025. https://www.justice.gov/opa/pr/ceo-health-care-software-company-sentenced-1b-fraud-conspiracy
Van Alstin C. Healthcare CEO sentenced to 19 years for role in $1B Medicare fraud scheme. HealthExec. October 15, 2026. https://healthexec.com/topics/healthcare-management/legal-news/healthcare-ceo-sentenced-19-years-role-1b-medicare-fraud-scheme
Day W. Kansas man found guilty in $1 billion healthcare fraud scheme. KSN-TV. May 14, 2026. https://www.ksn.com/news/crime/kansas-man-convicted-medicare-fraud/amp/
Nozicka L. Feds charge health care execs with $1.9 billion fraud. Kansas City Star, republished by CPA Practice Advisor. July 5, 2023. https://www.cpapracticeadvisor.com/2023/07/05/feds-charge-health-care-execs-with-1-9-billion-fraud/81761/
