A health clinic in a Montana town grappling with asbestos contamination is appealing nearly $6 million in fines and penalties following a jury’s determination that it made hundreds of false claims on behalf of patients. The lawsuit was brought by BNSF Railway, implicated in contamination in the town of Libby, Montana, which has caused illness and death among residents due to asbestos exposure from vermiculite mining in the area.
The jury found that out of over 2,000 cases of asbestos-related diseases identified by the clinic, 337 were linked to false claims, resulting in patients receiving benefits they were not entitled to, such as Medicare. Asbestos-related diseases can vary from lung issues to cancer, with symptoms appearing years after exposure to even small amounts of asbestos.
The clinic argued it acted in good faith, following advice that X-ray readings alone were sufficient for diagnosing asbestos-related diseases, while BNSF accused the clinic of not verifying these claims with healthcare providers. The clinic was ordered to pay $5.8 million in penalties and damages, with BNSF receiving a portion of the sum for bringing the lawsuit on behalf of the government.
Despite the judgment leading the clinic to declare bankruptcy, the case was dismissed at the government’s request to avoid costs falling on taxpayers, as the clinic depended on federal funding for operations. The facility has processed over 3,400 cases of asbestos-related illness and received more than $20 million in federal funds.
Residents in the Libby area affected by asbestos exposure have access to federally funded services under a provision in the 2009 health law, given the town’s designation as a Superfund site due to asbestos-related health concerns linked to mining activities. BNSF, embroiled in numerous asbestos-related lawsuits itself, was found liable for contributing to the illnesses and deaths of two individuals in Libby in a separate trial, with each estate awarded $4 million in compensatory damages for their asbestos-related illnesses.
