Chesapeake Regional Medical Center has reached a tentative agreement with the Justice Department to resolve a criminal case stemming from the hospital’s decades-long relationship with convicted OB-GYN Javaid Perwaiz, MD, 13 News Now reported Aug. 19.
Under the tentative agreement, the hospital would admit certain facts, submit to independent monitoring, pay restitution to Medicare and Medicaid and establish a $12.8 million fund for patients who underwent procedures performed by Dr. Perwaiz at the facility. A federal grand jury indicted the hospital in January 2025, alleging it granted Dr. Perwaiz privileges from 1984 until his 2019 arrest despite knowing another hospital had previously revoked his privileges for performing unnecessary surgeries and that he had been convicted of two tax fraud felonies in 1996.
The hospital received $18.5 million in Medicare, Medicaid and insurance reimbursements for procedures Dr. Perwaiz performed at the facility between 2010 and his arrest. Dr. Perwaiz is currently serving a 59-year prison sentence after being convicted on 52 federal charges in 2020. A separate civil lawsuit with more than 1,000 plaintiffs remains pending.
Becker’s has reached out to Chesapeake Regional Medical Center and will update the story if more information becomes available.
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