Chesapeake, Va. — In a stunning turn of events, Chesapeake Regional Medical Center (CRMC) is facing federal charges for its alleged complicity in one of the region’s most appalling healthcare scandals. A federal grand jury has indicted the hospital on counts of healthcare fraud, conspiracy to defraud the United States, and interference with government functions.
The indictment centers on the hospital’s long-standing relationship with Dr. Javaid Perwaiz, an obstetrician-gynecologist who worked at CRMC from 1984 until his arrest in 2019. Dr. Perwaiz was convicted in 2020 of 52 counts of healthcare fraud and false statements for performing medically unnecessary surgeries—including irreversible hysterectomies—and elective inductions that violated medical standards. He is currently serving a 59-year prison sentence.
But prosecutors now allege that Perwaiz didn’t act alone. According to U.S. Attorney Jessica Aber, CRMC knowingly allowed Perwaiz to carry out his predatory practices for decades, turning a blind eye to his history of misconduct in order to boost its bottom line. “Dr. Perwaiz did not act alone in this conspiracy to needlessly sterilize and otherwise harm women,” Aber said in a statement. “The Grand Jury found today that CRMC was complicit in this horrifying scheme to place profits over patient care.”
A History of Negligence
The allegations against CRMC paint a damning picture. According to the indictment, the hospital granted Perwaiz privileges in 1984 despite being notified that another hospital had terminated him for performing unnecessary surgeries. CRMC allegedly re-credentialed him every two years, even after his 1996 federal felony convictions for tax fraud and repeated medical malpractice claims.
From 2010 to 2019, CRMC reportedly collected $18.5 million in reimbursements for procedures Perwaiz performed at its facility. Many of these procedures—including hysterectomies, sterilizations, and early inductions—were medically unnecessary or outright fraudulent.
Investigators allege that CRMC staff knowingly allowed Perwaiz to alter medical records to justify his actions. For example, he routinely scheduled early deliveries before 39 weeks of gestation without medical need, a practice that violates standard obstetric care. A 2019 review found that nearly 40% of his Medicaid patients were induced early for no valid reason, with over 60% of the medical forms showing signs of tampering.
Putting Profits Over Patients
The indictment claims CRMC prioritized financial gain over patient safety. Hospital leadership allegedly knew Perwaiz misclassified inpatient-only surgeries as outpatient procedures, which reduced scrutiny but increased reimbursements. Staff also allegedly allowed Perwaiz to bypass policies for scheduling non-emergency surgeries, enabling him to perform multiple operations on Saturdays when he was already scheduled for deliveries.
“This hospital’s prioritization of profits jeopardized the safety of many of their patients,” said Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office. “The FBI and our partners will continue to hold all parties responsible who abuse positions of power in such a manner.”
Perhaps most chillingly, the indictment alleges that CRMC knowingly permitted Perwaiz to sterilize Medicaid patients without valid consent forms, a blatant violation of federal law.
What Happens Next?
CRMC’s role in the scandal raises serious questions about the oversight of medical professionals and the accountability of healthcare institutions. While Perwaiz’s personal crimes have been adjudicated, federal authorities are now turning their focus to the hospital’s role in enabling his actions.
Maureen Dixon, Special Agent in Charge for the U.S. Department of Health and Human Services’ Office of Inspector General, summed up the case: “As alleged in today’s indictment, CRMC knowingly disregarded patient care and allowed Dr. Perwaiz’s unnecessary surgeries in order to increase its own revenue.”
As the legal proceedings unfold, patients and families impacted by Perwaiz’s actions—and the hospital’s alleged negligence—will be watching closely. For many, the indictment of CRMC represents a critical step toward accountability in a case that has shattered lives and trust in the local healthcare system.