Healthcare CEO Convicted in Massive $1B Medicare Fraud

HealthSplash CEO Brett Blackman was convicted on Thursday for his role in a massive Medicare fraud scheme that defrauded federal programs of over $1 billion. The scheme, described as one of Florida's most egregious, targeted hundreds of thousands of Medicare beneficiaries for medically unnecessary products such as orthotic braces.

Operating through a platform acquired by HealthSplash, Blackman and his associates coordinated illegal kickbacks with telemedicine doctors and pharmacies. These entities falsely billed Medicare for the unnecessary items, often using sham contracts and manipulated documents to conceal the fraud. Doctors' orders were frequently fabricated, indicating patient examinations that never occurred.

The total amount billed to Medicare and other federal healthcare benefit programs exceeded $1 billion, with payouts reaching over $450 million. Blackman's co-defendant, Gary Cox, the former CEO of DMERx, was sentenced to 15 years in prison earlier in 2026. Blackman faces a maximum of 20 years in prison, with sentencing scheduled for August 26.

This conviction aligns with a broader federal focus on combating healthcare fraud. The Department of Justice previously announced the creation of a Fraud Division and a task force aimed at eliminating fraud, particularly within the hospice and home healthcare sectors. Recent investigations and arrests in California also highlight ongoing efforts to address significant healthcare-related fraud.