CHESAPEAKE, Va. — Chesapeake Regional Medical Center reached a deferred prosecution agreement on Friday with the U.S. Attorney's Office for the Eastern District of Virginia for its part in former Chesapeake Doctor Javaid Perwaiz's crimes.
Perwaiz is currently serving a 59-year-long federal prison sentence for conducting irreversible hysterectomies, improper sterilizations, and other medically unnecessary procedures for over a decade. He misled women about their health, telling some they had cancer when they did not, according to court records. Perwaiz was convicted in 2020.
Back in Jan. 2025, News 3 reported that CRMC had been indicted on charges of healthcare fraud, conspiracy to defraud the U.S., and interference with government functions.
In the agreement, CRMC accepts responsibility and admits its role in Perwaiz's crimes, outlined in a statement of facts that include Perwaiz being found guilty for 52 counts of health care fraud and false statements, and the details of multiple unnecessary surgeries performed on patients. This is separate from the lawsuit with over 1,000 patients of Perwaiz listed as plaintiffs.
Watch previous coverage: True Crime 757; The 'incalculable' human toll of convicted OBGYN Perwaiz as hospital trial nears
CRMC re-credentialed Perwaiz every two years between 1984 and 2019, including after a felony conviction in 1996 when his medical license was revoked and later reinstated.
The hospital has agreed to pay health care benefit programs a total of $6,418,458 — $3,308,502 for surgical procedures and $3,109,956 for obstetric procedures — which is an approximation of the money CRMC and Perwaiz received for his procedures.
A patient restitution fund will also be established by CRMC for the over 1,000 victims of Perwaiz listed on the lawsuit, amounting to $12,836,916. Patients will have six months to file a claim for payment, according to court docs.
Watch previous coverage: Lawsuit against Chesapeake Regional over Perwaiz surgeries reaches 1,000 victims, $10B
In a statement sent to News 3, CRMC said,
"Over the past months, the Board and leadership of Chesapeake Regional Healthcare have worked with representatives of the U.S. Attorney’s Office to reach a resolution on the pending indictment of the organization relating to the practice of a former physician.
Today, we announce that a Deferred Prosecution Agreement has been finalized with the federal government which will allow the organization to move forward and focus our efforts on the continued delivery of high-quality care for our community.
First and foremost, we express our sorrow to the women and families impacted by these events for all that they have endured. We also must reflect on and take responsibility for our organization’s role in the past relating to this physician’s practices.
We note that in the Agreement, the U.S. Attorney’s Office has recognized the enhanced compliance standards and safeguards that have been implemented by the hospital since the events described in the Indictment occurred, including hiring an independent external expert to review our compliance program, enhancing the role of compliance leadership, formalizing an annual compliance workplan, updating training and including medical necessity as part of our billing audit process. Maintaining and advancing these safeguards remains central to how we operate.
At Chesapeake Regional Healthcare, patient safety and quality care remain our highest priorities. We operate under rigorous quality care oversight, reporting and accountability processes. Our Board and new leadership team remain actively engaged in maintaining the high standards our patients expect.
Thank you for the opportunity to respond."
Read the full agreement and statement of facts below.
Click here to see how we use AI at WTKR News 3.
