Kansas health software owner sentenced in $1 billion Medicare fraud case

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15.10.2026

Kansas health software owner sentenced in $1 billion Medicare fraud case — Kansas software in $1B fraud

Federal prosecutors have secured a 19-year prison sentence against a Kansas health care software company owner tied to one of the largest telemedicine fraud schemes targeting Medicare. The case centers on false doctors' orders and prescriptions that authorities say drove more than $1 billion in billings to Medicare and other federal health care programs.

Highlights

Brett Blackman, CEO of HealthSplash, sentenced for running a scheme generating over $1 billion in false Medicare billings using fraudulent doctor orders.
Blackman’s HealthSplash and acquired DMERx platform enabled the creation of false prescriptions and doctors' orders, targeting hundreds of thousands of Medicare beneficiaries nationwide.
Telemedicine companies, pharmacies, and durable medical equipment suppliers paid kickbacks and bribes through the platform in exchange for fraudulent signed orders, with Blackman and co-conspirators profiting from referral proceeds.

Court findings detail scale of telemedicine fraud

As reported by the U.S. Department of Justice, Brett Blackman, 43, of Johnson County, Kansas, was sentenced yesterday for operating a platform that generated false doctors' orders and prescriptions used to bill federal health care programs for medically unnecessary equipment.

According to court documents and trial evidence, Blackman and his co-conspirators targeted hundreds of thousands of Medicare beneficiaries across the United States, persuading them to accept orthotic braces and other items they did not need. Prosecutors said purported telemedicine doctors then signed bogus prescription orders so co-conspirators could bill Medicare and other federal programs, with total billings exceeding $1 billion.

Blackman owned, controlled and served as CEO of HealthSplash, which acquired Power Mobility Doctor Rx, LLC, known as DMERx, in September 2017. Prosecutors said the internet-based platform generated false and fraudulent doctors' orders for durable medical equipment and prescriptions for other items, while connecting pharmacies, DME suppliers and marketers with telemedicine companies that accepted illegal kickbacks and bribes in exchange for signed orders. Blackman and his co-conspirators then took a share of the proceeds from those referrals.

Our earlier article on Chariot Claims’ $10 million Series A looked at how legal-tech platforms are using AI and automation to process mass arbitration and other high-volume consumer claims. We noted that the company works with law firms to screen large numbers of submissions tied to issues like privacy disputes, hidden fees, and hard-to-cancel subscriptions, while expanding tools that analyze public records and accelerate case review.

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