Virginia Hospital Pays $19.2M to Settle Unnecessary Surgery Fraud Case
Chesapeake Regional Medical Center finalized a deferred prosecution agreement with the U.S. Attorney's Office for the Eastern District of Virginia on Oct. 23, resolving healthcare fraud charges tied to medically unnecessary procedures performed by former OB-GYN Javaid Perwaiz. The hospital will pay $6.4 million in restitution to healthcare programs including Medicare, Medicaid and Tricare, plus establish a $12.8 million fund for affected patients, who have six months to file claims once the two-year agreement term begins. Court documents show hospital leaders repeatedly renewed Perwaiz's privileges and continued billing despite known concerns about documentation, medical necessity and sterilization consent. The hospital must retain an independent compliance monitor and implement new oversight safeguards; if it complies, prosecutors will dismiss the criminal charges.