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A Justice Department lawsuit describes a sweeping fraud scheme in which dozens of Texas providers and front companies funneled millions in lab test bills through a small rural hospital that eventually shuttered in 2018.

At the heart of the scandal is Little River Healthcare, a bankrupt health care management company that took over the operations of a critical access hospital in Rockdale, Texas in 2014 and allegedly used the hospital’s favorable government reimbursement rates to broker deals with unscrupulous partners and rake in millions in profit.

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