Chesapeake Regional Medical Center Signs Restitution Deal
The hospital will pay over $19 million to resolve fraudulent billing claims linked to unnecessary medical procedures.
Updated on Oct. 23, 2026 in Healthcare
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Chesapeake Regional Medical Center has entered into a Deferred Prosecution Agreement with the U.S. Attorney's Office to resolve fraud allegations. The hospital admitted to receiving payments for medically unnecessary surgeries performed between 2010 and 2019.
Why it matters
This agreement requires the facility to provide significant financial restitution to both government health programs and impacted patients. The settlement aims to compensate for funds improperly obtained through fraudulent billing practices during the specified decade.
Chesapeake Regional Medical Center will pay $6,418,458 to health care benefit programs and $12,836,916 to the Patient Restitution Fund. Eligible patients have a six-month window to file documentation and claim their share of the restitution funds.
The players
Chesapeake Regional Medical Center
This healthcare facility serves as the primary hospital located in Chesapeake, Virginia.
U.S. Attorney's Office
This federal agency acts as the prosecutorial body for the Eastern District of Virginia.
Dr. Javaid Perwaiz
He is the physician who performed the medically unnecessary procedures at the hospital from 2010 to 2019.
The details
The hospital acknowledged that Dr. Javaid Perwaiz conducted medically unnecessary surgeries at the facility during his tenure. By accepting the terms of the agreement, the institution avoids further criminal prosecution provided it maintains strict compliance.
Timeline
Surgeries associated with the fraud occurred between 2010 and 2019.
The Deferred Prosecution Agreement was finalized in October 2026.
Market Landscape
This settlement aligns with federal enforcement trends targeting systemic billing fraud within regional hospital networks. It signals a move toward increased corporate accountability for procedures performed by medical staff under the hospital's oversight.
Patients who underwent surgeries by Dr. Javaid Perwaiz during the 2010-2019 period are entitled to pursue restitution through the established fund. Affected individuals should prepare their medical documentation now to meet the six-month filing deadline.
The takeaway
This case serves as a reminder for patients to maintain thorough medical records when undergoing elective or major surgeries. It highlights the importance of institutional oversight in verifying that all medical procedures are clinically necessary before billing occurs.
What happens next
Patients must initiate their claims process within the six-month period following the October 2026 agreement date to be eligible for restitution.
Further reading
For broader context on industry trends, visit Healthcare.
Source note: This article includes information reported by WAVY-TV 10 Hampton Roads.
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