A health clinic in a Montana town affected by asbestos contamination has filed for bankruptcy protection. This comes after a judge ordered the clinic to pay almost $6 million in penalties and damages for submitting false claims for benefits. Despite the bankruptcy filing, the Center for Asbestos Related Disease clinic will continue operating while it appeals the judgment. The clinic has been instrumental in responding to the health issues caused by asbestos pollution in the town of Libby. The false claims case was initiated by BNSF Railway, but the clinic denies any intentional wrongdoing and has appealed the jury’s verdict. The clinic has provided services to thousands of patients with asbestos-related diseases and has received significant federal funding.
The bankruptcy filing aims to ensure the clinic can maintain its services, pay its employees, and keep its operations running. It is still unclear if the patients associated with the false claims will lose their benefits. BNSF, the party filing the false claims case, is also involved in numerous asbestos-related lawsuits. The judge awarded BNSF 25% of the proceeds from the case, as allowed by federal law.
The judge criticized the clinic for its “reckless disregard” for medical procedures and mentioned evidence of high rates of opioid prescriptions for patients without legitimate asbestos-related diagnoses. However, the clinic’s director disputed these criticisms, highlighting differences in interpreting the 2009 health law. The clinic’s new medical director has implemented changes, including the cessation of opioid prescriptions and referral of pain management to external providers. It is worth noting that federal prosecutors did not intervene in the false claims case, and no criminal charges have been filed against the clinic.
Two decades ago, the Libby area was declared a Superfund site due to asbestos contamination caused by mining activities. At least 400 people have died and thousands have been affected by asbestos-related diseases in the area. The contamination originated from vermiculite mining by W.R. Grace & Co., a chemical company based in Maryland. Although the mine closed in 1990, asbestos continues to be found in the area, including in a BNSF rail yard located in the town of Libby.
Asbestos-related diseases can range from respiratory issues to lethal cancer. Even minimal exposure to asbestos can cause lung problems, and symptoms may take several decades to manifest.