In the 1950's a doctor performed abortions out of his home. He kept one of the late term babies, saving it by keeping it in a homemade incubator. He raised the child as his own naming him Milo.
When Milo was about 9 he invited a group of young girls to his home he makes them a deal that if he shows them the aborted fetus's his dad keep in jars that he could give them a medical "exam" using his dad's operating room. He kills one of the girls and slashes Claire's chest. It is implied that he drowns while trying to escape by crossing a river after the murder.
Years later when the girls all return to town for a wedding they are murdered one by one.
In the end it is discovered that Milo never drowned and is an adult midget who passes himself off as the child Milo. The only girl to escape Milo is, Claire (Jennifer Jostyn), the one that was slashed across the chest in the beginning.