Tennessee physician accused of fraud

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A physician in Kingsport, Tenn., has been accused of healthcare benefit fraud, making false statements and unlawfully distributing controlled substances, WJHL 11 reported July 21.

What happened?

  • Scott McLain, MD, allegedly billed insurance payers for services he did not perform and illegally distributed Schedule II and Schedule IV drugs, including Oxycodone.
  • The allegations stem from an investigation conducted by the Tennessee Bureau of Investigation’s Medicaid Fraud Control Division and the U.S. Drug Enforcement Administration. As part of the probe, agents interviewed pharmacists and individuals who reportedly received improper prescriptions from Dr. McLain between mid-2023 and early 2025.
  • In addition to the drug-related accusations, Dr. McLain is also charged with billing two separate insurance companies for excessive services that were not provided.
  • He was arrested on July 1. Following a detention hearing on Thursday, his request for release was denied. 
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