Dallas lab Magnolia Diagnostics is paying $24 million to settle claims it bilked Medicare by forcing senior living communities to pay for unnecessary, expensive respiratory pathogen tests—often without medical justification. Owners John and Kelly Bains are on the hook for $19.2 million, while investors contribute the remaining $4.8 million. The scheme allegedly involved pre-checked test orders, coercion of facilities, fake doctor signatures, and even freezing samples for months—rendering results useless. This joint DOJ and U.S. Attorney’s Office investigation underscores the urgent need for accountability in healthcare billing, especially for vulnerable seniors.
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