Chesapeake hospital indicted for healthcare fraud involving unnecessary surgical procedures
NORFOLK, Va. – A federal grand jury returned an indictment today charging Chesapeake Regional Medical Center (CRMC) with healthcare fraud and conspiracy to defraud the United States and interference with government functions.
As alleged in the indictment, CRMC, formerly known as Chesapeake Regional Hospital, granted privileges to Javaid Perwaiz from 1984 until his arrest in 2019, despite knowing that Perwaiz’ privileges had been terminated at another hospital for performing unnecessary surgeries and that he was convicted of two federal felonies in 1996. From 2010 to 2019, CRMC allegedly received approximately $18.5 million in reimbursements from health care benefit programs for surgical and obstetric procedures Perwaiz performed at the facility.
“After Dr. Perwaiz was convicted of performing irreversible hysterectomies and other medically unnecessary surgeries on women, we continued to investigate the role that CRMC played,” said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia. “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.”
Beginning at least as early as January 2010 and continuing until November 2019, CRMC, Perwaiz, and others allegedly conspired to defraud the Centers for Medicare and Medicaid Services, Medicare, Medicaid, the Virginia Department of Medical Assistance Services, and TRICARE. CRMC and Perwaiz allegedly agreed to Perwaiz continually performing surgeries and other procedures at CRMC that were in violation of the rules and regulations of the healthcare benefit programs. CRMC also allegedly defrauded Medicare, Medicaid, TRICARE, Anthem, Optima, Humana, Cigna, Aetna, United, and others to obtain reimbursements for obstetric deliveries that were elective inductions for no medical reason before 39 weeks of gestation, contrary to medical necessity and the standard of care. CRMC allegedly submitted such reimbursements itself, and aided and abetted Perwaiz to do the same.
“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 hospital’s prioritization of profits jeopardized the safety of many of their patients, many whom had full trust in them to provide reliable medical care. 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.”
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