Dr. Kathy Cornelius, Medicare Fraud, Delaware 2020

WILMINGTON, Del. – In a brazen scheme, Dr. Kathy Cornelius, a Delaware physician who now resides in Huntsville, Alabama, has agreed to pay $500,000 to resolve allegations that she violated the False Claims Act by ordering medically unnecessary genetic testing for Medicare beneficiaries residing in Delaware.

Between October 2020 and February 2022, Dr. Cornelius referred more than 250 Delaware residents for medically unnecessary genetic tests that were paid for by Medicare. The United States alleges that Dr. Cornelius had no medical relationship with these patients and that the referrals were based on brief telemedicine consultations – often two minutes or less in duration – during which Dr. Cornelius failed to establish any legitimate medical justification for the tests. The genetic tests Dr. Cornelius ordered often cost thousands of dollars per patient.

“Doctors who refer patients for medically unnecessary services such as genetic testing drain vital funds from Medicare and other government healthcare programs,” said U.S. Attorney Weiss. “This office will continue to use all available means to identify healthcare providers who increase costs through unnecessary procedures and to hold them accountable.”

The United States alleges that Dr. Cornelius ordered genetically unnecessary testing for patients without any medical relationship, in violation of the False Claims Act. The settlement marks a significant victory for the government in its ongoing efforts to combat healthcare fraud.

Defendant: Dr. Kathy Cornelius

Criminal Charges: Violation of the False Claims Act

City and State: Wilmington, Delaware

Date of Crime: Between October 2020 and February 2022

Sentence: Agreed to pay $500,000

As part of the settlement, Dr. Cornelius has agreed to pay $500,000 to resolve the allegations. The settlement marks a significant victory for the government in its ongoing efforts to combat healthcare fraud.

The False Claims Act is a powerful tool in the government’s efforts to combat healthcare fraud. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the HHS-OIG at 800-447-8477.

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