Chesapeake Regional Medical Center Indicted for Healthcare Fraud and Conspiracy
TL/DR –
Chesapeake Regional Medical Center (CRMC) has been charged with healthcare fraud and conspiracy to defraud the US government. The indictment alleges that CRMC allowed Javaid Perwaiz, a surgeon convicted of two federal felonies, to perform unnecessary surgeries and procedures, despite knowing of his past conduct. Between 2010 and 2019, CRMC allegedly received around $18.5m in reimbursements from healthcare benefit programs for these procedures.
Federal Grand Jury Indicts Chesapeake Regional Medical Center on Healthcare Fraud Charges
The Chesapeake Regional Medical Center (CRMC) has been charged with healthcare fraud, conspiracy to defraud the United States, and interference with government functions by a federal grand jury. The charges stem from CRMC’s association with Dr. Javaid Perwaiz, who was previously convicted of performing unnecessary surgeries and two federal felonies.
CRMC allegedly received around $18.5 million from health care benefit programs for procedures performed by Dr. Perwaiz between 2010 and 2019. The investigation aims to uncover the extent of CRMC’s role in the fraudulent activities. The U.S. Attorney for the Eastern District of Virginia, Jessica D. Aber suggested that CRMC was complicit in Dr. Perwaiz’s scheme.
The indictment alleges that from January 2010 to November 2019, CRMC, Dr. Perwaiz, and others conspired to defraud several healthcare services. They allegedly violated the rules and regulations of the healthcare benefit programs, and defrauded Medicare, Medicaid, TRICARE and others for unjustified obstetric deliveries before 39 weeks of gestation.
Moreover, it’s alleged that Dr. Perwaiz submitted falsified documents to the CRMC, which resulted in about 39% of his patients being inappropriately induced before 39 weeks of gestation. Despite being aware of these malpractices, CRMC allowed Dr. Perwaiz to continue.
The indictment further alleges that CRMC knew Dr. Perwaiz was misclassifying inpatient surgeries as outpatient procedures. CRMC was also aware that Dr. Perwaiz was performing sterilizations on Medicaid patients without valid consent forms and allowed him to continue doing so.
It is further alleged that CRMC, despite having knowledge of Dr. Perwaiz’s history of unnecessary surgeries and felony conviction, granted him privileges in 1984. He continued to perform procedures at CRMC until his arrest in November 2019.
In 2020, Dr. Perwaiz was convicted of healthcare fraud and false statements in healthcare matters and was sentenced to 59 years in prison. The indictment states that CRMC re-credentialed Dr. Perwaiz every two years from 1984 to 2019, despite his criminal background and malpractice lawsuits.
People who believe they may have been a victim or have any information regarding this matter are urged to contact the HHS-OIG tipline at 1-800-HHS-TIPS /1-800-447-8477 or online at tips.oig.hhs.gov.
For more details, visit the U.S. Attorney’s Office website and search for Case No. 2:25-cr-1 on the PACER website.
However, these are just accusations as of now. CRMC remains innocent until proven guilty.
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