KINGSPORT, Tenn. — Kingsport doctor Scott McLain has reached an agreement with federal prosecutors, admitting guilt to two felony charges, each carrying a maximum sentence of five years in prison.

On September 3, McLain consented to plead guilty to making “false statements about health care matters” and distributing the controlled substance Xanax without a valid medical reason.

As part of the plea deal, McLain may have to forfeit up to $90,000. Additionally, both charges could lead to fines as high as $250,000 and a year of supervised release for the false statements charge, and another year for the drug-related charge.

McLain, arrested on July 1, initially faced charges of distributing drugs and health care fraud following a lengthy investigation. The plea deal resulted in two of these charges being dismissed.

In agreeing to the false statements charge, McLain confessed that from late 2022 to mid-2024, he falsely billed insurance companies, exaggerating the hours of service. He notably charged United Healthcare and Blue Cross Blue Shield for a total of 26.3 hours in a single day.

This charge also mentioned McLain’s earlier indictment related to his previous clinic operations in Knoxville, resolved in 2018 with him reimbursing TennCare $200,000 and committing to a coding and billing accuracy course.

“As such, by 2022, defendant was fully aware and knowledgeable about proper and accurate coding and billing when seeking reimbursement for claims for health care services submitted to health care benefit programs,” the agreement states.

On the drug distribution count, McLain admitted to prescribing Xanax to his fiancée over several months of early 2025 in violation of the Tennessee Board of Medical Examiners’ rules. McLain admitted to a series of facts surrounding large amounts of the drug that he prescribed to his fiancée.

The stipulations also include an admission that in November 2024, “investigating agents specifically warned defendant that he could not prescribe drugs to individuals with whom he was in an intimate relationship (the reference at that time was to another live-in girlfriend).”

A sentencing date has not been set.