Melt the butter in a heavy-bottom skillet over medium heat. Add the chicken pieces, cook, turn often, until browned on all sides, about 10 minutes. Then remove to a plate and season with salt and pepper.
Keep the pan hot and add the sausage, bell pepper, celery, white rice, and ground red pepper to the drippings in the pan.
Stir and coat with drippings for 2 minutes and stir in the water, parsley, thyme and bay leaves. Then return the chicken to the skillet.
Cook, covered, over medium-low heat until the water is absorbed and the chicken is cooked through, about 20 minutes. Cook, uncovered, until any excess moisture is evaporated.