Virginia hospital indicted for $18.5M fraud scheme, unnecessary surgeries

Chesapeake (Va.) Regional Medical Center, formerly known as Chesapeake Regional Hospital, has been indicted for healthcare fraud and conspiracy, accused of allowing Javaid Perwaiz, MD, to perform unnecessary procedures and submitting fraudulent claims for reimbursements to Medicare, Medicaid and private insurers. 

Advertisement

Dr. Perwaiz, who practiced at CRMC from 1984 until his arrest in 2019, had a history of misconduct, including termination from another hospital for unnecessary surgeries and a 1995 conviction for tax fraud, according to a Jan. 8 news release from the Justice Department. Despite this, CRMC repeatedly re-credentialed him, knowing his background, felony convictions and involvement in malpractice lawsuits.

From 2010 to 2019, Dr. Perwaiz and CRMC allegedly conspired to defraud various healthcare programs, receiving approximately $18.5 million in reimbursements. 

The hospital is accused of enabling practices including elective inductions before 39 weeks of gestation without medical justification, misclassifying inpatient-only surgeries as outpatient procedures and sterilizing Medicaid patients without proper consent. 

According to the indictment, employees and practitioners at CRMC observed these discrepancies but failed to intervene, while the hospital continued billing for these procedures.

Dr. Perwaiz was convicted in 2020 on 52 counts of healthcare fraud, including unnecessary hysterectomies and elective early deliveries.

At the Becker’s 32nd Annual Meeting: The Business and Operations of ASCs, taking place October 29-31 in Chicago, ASC leaders, surgeons and healthcare executives will explore strategies to drive growth, enhance operational performance, navigate reimbursement challenges and prepare for the future of ambulatory surgery. Apply for complimentary registration now.

Register to Attend Webinar

Is ambulatory care healthcare’s big margin engine? 4 leaders weigh in

Wednesday, July 29
1:00 PM - 2:00 PM CDT

Presenters: Joe Ganley, athenahealthJeffrey Flynn, CASC, Gramercy Surgery CenterBryan Tsao, Access Center, Loma Linda University HealthJason Zepeda, Northridge Hospital Medical Center, CommonSpirit HealthGreg DeConciliis, PA-C, CASC, Boston Out­Patient Surgical Suites

Advertisement

Next Up in ASC News

Advertisement

Comments are closed.