Chesapeake Regional Reaches Tentative Deferred Prosecution Deal in Perwaiz Fraud Case
Federal prosecutors have reached a tentative deferred prosecution agreement with Chesapeake Regional Medical Center related to criminal charges stemming from former OB-GYN Javaid Perwaiz's unnecessary surgeries and sterilizations between 2010 and 2019. The deal requires the hospital to admit certain facts, accept an independent monitor, repay health care programs, and create a $12.8 million patient fund. The hospital received $18.5 million from public and private payers — including Medicaid — for procedures Perwaiz performed, some of which prosecutors allege were misclassified. If finalized, the agreement would allow Chesapeake Regional to avoid a criminal trial and potential exclusion from Medicare and Medicaid, while a separate civil lawsuit with more than 1,000 plaintiffs remains ongoing.
A federal conviction could have excluded Chesapeake Regional from Medicaid and Medicare payments entirely, threatening the hospital's viability, while the deferred prosecution agreement preserves federal program participation but imposes compliance monitoring and financial penalties.
Managed Care
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