Magnolia Diagnostics, Magnolia Health, John Bains, and Kelly Bains Agreed to Be Excluded for Allegedly Billing Medically Unnecessary Respiratory Pathogen Panel Tests

On July 22, 2026, in connection with the resolution of their False Claims Act liability, Magnolia Diagnostics, LLC (Magnolia), Magnolia Health, LLC (Magnolia Health), John Bains, and Kelly Bains, Dallas, Texas, agreed to be excluded from participation in all Federal health care programs under 42 U.S.C. 1320a-7(b)(7) for a period of seven years. The investigation revealed and OIG alleged that John and Kelly Bains owned and operated Magnolia and Magnolia Health, and devised a strategy to generate substantial revenue by requiring senior communities ordering COVID-19 testing to also order expensive and medically unnecessary respiratory pathogen panels (RPP). Magnolia also performed and billed Medicare for thousands of RPPs that lacked clinical utility because the results were not reported in time to diagnose, treat, or manage the beneficiaries’ conditions.