Virginia hospital faces serious federal charges, performed medically unnecessary surgeries for profit
Virginia – The Chesapeake Regional Medical Center (CRMC) has been charged by a federal grand jury with healthcare fraud, conspiracy to defraud the United States, and interference with government functions. The accusation focuses on former hospital obstetrician Dr. Javaid Perwaiz, who reportedly performed medically unnecessary surgeries and procedures, therefore endangering the health of numerous individuals for profit.
According to the accusation, from 1984 until his arrest in 2019, CRMC—formerly known as Chesapeake Regional Hospital—granted medical privileges to Dr. Perwaiz. This period of collaboration occurred despite numerous warnings, including Perwaiz’s prior removal from another hospital and his conviction of two federal felonies in 1996 for tax fraud. The hospital got over $18.5 million in reimbursements from health care initiatives covering surgeries and treatments carried out by Perwaiz between 2010 and 2019.
U.S. Attorney Jessica D. Aber of the Eastern District of Virginia claims that the inquiry turned out Perwaiz’s acts were not isolated events but rather part of a larger conspiracy enabled by CRMC, giving financial gain top priority over patient safety.
“As alleged in the indictment, Dr. Perwaiz did not act alone in this conspiracy to needlessly sterilize and otherwise harm women. The Grand Jury found today that CRMC was complicit in this horrifying scheme to place profits over patient care,” Aber stated, according to a press release by the Department of Justice, Eastern District of Columbia.
According to the indictment, Perwaiz and others planned to defraud several healthcare providers—including Medicare and Medicaid—by performing and billing for elective surgeries and inductions without medical necessity and before the medically advised 39 weeks of gestation, so undermining their integrity. Alleged to be in violation of healthcare norms and negatively impacting patient care, CRMC and Perwaiz allegedly altered records in order to keep on with their business as usual.
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“These latest charges are the next step toward justice for the women that were significantly impacted by Perwaiz’ predatory actions, as well as the negligence of Chesapeake Regional Medical Center,” said Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office. “The FBI and our partners will continue to hold all parties responsible who abuse positions of power in such a manner, and that’s what today’s charges reflect.”
Additional claims point to Perwaiz using scheduling systems to do these operations mostly on Saturdays, a day he was already booked to operate on. He allegedly used this timing to falsify medical records and schedule in order to carry on his illegal activities undetectable.
Special Agent in Charge Maureen Dixon of the U.S. Department of Health and Human Services’ Office of Inspector General said that these charges represent a crucial step in our ongoing efforts to root out healthcare fraud and protect patients from harm. Institutions such as CRMC have to take responsibility for their part in such schemes.
The trust placed in CRMC by its patients and the community was betrayed when Perwaiz was allowed to violate accepted surgical scheduling guidelines and execute procedures without prior authorization.
Should one be found guilty, the allegations against CRMC could result in major penalties including financial reparations and changes meant to stop such abuses going forward. Legal actions against CRMC are scheduled to last, and the healthcare community and public are keenly observing the result to guarantee responsibility and justice for the impacted patients.
