Genetics testing fraud case involving Del. physician settled in court

WILMINGTON, Del. – A Delaware physician 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 living in Delaware.

We’re told that between October 2020 and February 2022, Dr. Kathy Cornelius, who now lives in Huntsville, Alabama, referred more than 250 Delaware residents for medically unnecessary genetic tests that were paid for by Medicare. It is alleged that Dr. Cornelius has 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 tests she 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.”

Officials say the claims resolved by this settlement are allegations only and there has been no determination of liability.