Regional General Hospital implicated in fraud scheme

Published: Jul. 9, 2019 at 11:45 PM EDT
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Regional General Hospital in Williston, which has lost its hospital license but still operates a clinical lab, has been implicated in a 57-million dollar fraud scheme.

A Jacksonville businessman named Kyle Marcotte agreed to plead guilty to a charge of money laundering in federal court Tuesday.

Prosecutors say Marcotte performed urine drug tests on patients, but billed insurance companies through an agreement with Regional General and another rural hospital, which often receive higher reimbursements than urban hospitals.

The plea deal indicates that an unnamed "Person B" who "exercised control" over Regional General was involved in the fraud and that Marcotte will cooperate with further investigations.