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Heat oil in a large pot over medium high heat.
Add mushrooms and onions and cook, stirring occasionally, until softened, 6 to 7 minutes.
Add broth, chicken, rice, garlic and bay leaf, cover and bring to a simmer.
Reduce heat to medium low and simmer until rice and chicken are cooked through and tender, about 45 minutes.
Remove and discard bay leaf then stir in parsley, salt and pepper and serve.