More than 500 patients have filed a lawsuit against Chesapeake (Va.) Regional Medical Center and several of its current and former senior executives, alleging the hospital failed to stop a physician from performing medically unnecessary procedures for nearly a decade, The New York Times reported Dec. 29.
The lawsuit marks the latest development in an ongoing legal saga involving Javaid Perwaiz, MD, a former OB-GYN who is currently serving a 59-year prison sentence for healthcare fraud. It also follows a January 2025 indictment against the hospital, which is facing federal criminal charges of healthcare fraud tied to Dr. Perwaiz’s misconduct.
Filed Dec. 29, the lawsuit names the hospital, current CEO Reese Jackson, and two of his predecessors. The 510 plaintiffs are seeking $10 million each and allege the executives were negligent in allowing Dr. Perwaiz to perform unnecessary hysterectomies and sterilizations between 2010 and 2019, despite repeated concerns raised by hospital staff. Mr. Jackson could not be reached for comment by the Times, while the two former CEOs told the publication they were unaware of any complaints about Dr. Perwaiz during their tenure.
Federal prosecutors say Dr. Perwaiz had a pattern of falsifying records to justify surgeries. For example, investigators found he fabricated cancer diagnoses and altered obstetric records to meet insurance criteria for early inductions. Court documents also show he backdated consent forms to bypass Medicaid’s 30-day waiting period for elective sterilizations, according to the Times. His medical license expired in 2020, shortly before he was convicted on 52 federal counts of healthcare fraud and false statements. Thirty-eight of those counts involved procedures performed at Chesapeake Regional.
In January, a federal grand jury indicted the hospital on charges of healthcare fraud and conspiracy to defraud the U.S. Prosecutors allege the hospital knowingly allowed Dr. Perwaiz to continue operating and collected about $18.5 million in reimbursements from government and commercial insurers for procedures he performed from 2010 to 2019. The hospital has pleaded not guilty and previously described the indictment as “unfounded and an excessive overreach” by the government.
In a statement to Becker’s, Chesapeake Regional Healthcare said it was unaware of the former physician’s actions.
“The allegations that form the primary basis for this lawsuit were taken by Dr. Javaid Perwaiz – who has never been an employee of Chesapeake Regional Healthcare (CRH). His actions, for which he is now serving a lengthy prison sentence, occurred without the knowledge of the organization. CRH strives to provide the best care to its patients, including through its medical staff physicians. Unfortunately, privacy laws prohibit us from commenting further on these allegations.”
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