Chesapeake Regional Medical Center (CRMC) announced Friday that it has reached a Deferred Prosecution Agreement (DPA) with the U.S. Attorney’s Office for the Eastern District of Virginia. The agreement resolves the hospital’s involvement in the criminal conduct of former Chesapeake physician Dr. Javaid Perwaiz, who was convicted in 2020 of 52 counts of health‑care fraud and false statements for performing unnecessary surgeries and sterilizations.
Hospital admits responsibility
In a statement of facts filed with the court, CRMC acknowledged that it re‑credentialed Dr. Perwaiz every two years from 1984 through 2019, even after a 1996 felony conviction that led to a temporary revocation of his medical license. The hospital said the DPA allows it to move forward while it continues to provide high‑quality care to the Chesapeake community.
Financial restitution and penalties
Under the agreement, CRMC will pay a total of $6,418,458 to health‑care benefit programs—$3,308,502 for surgical procedures and $3,109,956 for obstetric procedures—representing an approximation of the funds the hospital and Dr. Perwaiz received for the illegal services. In addition, the hospital will establish a patient restitution fund of $12,836,916 for the more than 1,000 victims identified in the lawsuit. Victims have six months to submit claims for payment.
Enhanced compliance measures
CRMC highlighted several compliance upgrades that have been implemented since the misconduct was uncovered. These include hiring an independent external expert to review the hospital’s compliance program, expanding the role of compliance leadership, formalizing an annual compliance work plan, updating staff training, and adding medical necessity reviews to the billing audit process.
Hospital leadership’s response
“First and foremost, we express our sorrow to the women and families impacted by these events for all that they have endured,” the hospital said in a statement. “We also must reflect on and take responsibility for our organization’s role in the past relating to this physician’s practices. The U.S. Attorney’s Office has recognized the enhanced safeguards we have put in place, and maintaining and advancing those safeguards remains central to how we operate.”
What this means for Chesapeake residents
The DPA allows CRMC to avoid a criminal conviction while it fulfills its financial obligations and continues to serve patients. Community members can expect the hospital to maintain rigorous quality‑care oversight, reporting, and accountability processes as it moves forward. The restitution fund provides a concrete avenue for victims to receive compensation for the harms they suffered.
Background on Dr. Perwaiz
Dr. Perwaiz, a former obstetrician‑gynecologist, was sentenced to 59 years in federal prison for performing irreversible hysterectomies, improper sterilizations, and other medically unnecessary procedures over more than a decade. Court records show he misled patients, telling some they had cancer when they did not. His actions have been widely condemned as a gross violation of patient trust and medical ethics.
Looking ahead
CRMC’s agreement underscores the importance of robust credentialing and compliance systems in health‑care institutions. The hospital’s leadership says it will continue to prioritize patient safety and quality care, reinforcing its commitment to the Chesapeake community.
Original reporting: WTKR News 3 (Chesapeake section) — read the source article.
