Surgeon to pay $200,000 to settle medical kickback charges

A Massachusetts surgeon who previously made news for missing surgery after falling asleep in a hospital parking lot has agreed to pay $200,000 to settle allegations that he participated in a kickback scheme from medical device manufacturer and distributor DePuy, the U.S. attorney’s office for District of Massachusetts announced Friday.

Dr. Tony Tannoury of Andover admitted to ordering and receiving medical devices from DePuy Synthes, Inc. and DePuy Synthes Sales, Inc., collectively referred to as DePuy, in exchange for recommending and ordering their products for spinal surgery procedures that he performed on Medicare and Medicaid patients in Massachusetts in violation of the Anti-Kickback Statute. He used the free products for operations he performed in other countries, including: in the Kingdom of Saudi Arabia, Lebanon and Qatar.

In January 2023, DePuy agreed to pay approximately $9.75 million for his role in the program.

“Doctors are breaking the law by soliciting and receiving free goods from medical device manufacturers. These types of illegal kickbacks can distort medical evaluations and create an uneven playing field for companies that follow the rules,” Acting U.S. Attorney Joshua S. Levy said in a statement.

As part of the settlement, Tannoury admitted that from at least July 2016 through February 2018, he received more than $100,000 worth of free products from DePuy, including cages, rods, screws, plates and modular access and retraction systems, and used them in at least five operations that he performed in other countries. In the meantime, he used DePuy products in operations he conducted in Boston, including: for Medicare and Medicaid beneficiaries.

The Anti-Kickback Statute (AKS) prohibits anyone from offering, paying, soliciting, or receiving compensation to induce the referral of items or services covered by Medicare and other federally funded programs. The purpose of the Act is to prevent medical decisions from being questioned by improper financial incentives.

“Improper financial arrangements can undermine medical judgment and adversely affect medical decision-making. These types of findings have no place in our health care system and we will continue to work with our federal and state law enforcement partners to pursue such allegations,” said Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the General Inspector.

“Today’s settlement dispels allegations that Dr. Tony Tannoury solicited and received kickbacks and, in doing so, used his patients as pawns,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Division. “Health care fraud carries significant costs and serious consequences, and the FBI will continue to make such investigations a priority as we work to stop this behavior.”

Tannoury made headlines in 2021 after admitting to the Massachusetts Board of Medical Registration that he missed emergency ankle surgery in 2016. The director of the spine department at Boston Medical Center, as the attending surgeon, escorted the patient to the operating room and then left. eat lunch in a parked car and fell asleep, missing surgery.

—TMX contributed to this report.