A health clinic in a Montana town is seeking to reverse almost $6 million in fines and penalties imposed after a jury found it guilty of submitting hundreds of false claims related to asbestos exposure. The clinic, located in a town tainted with deadly asbestos, faces this legal battle following a lawsuit brought by BNSF Railway, a Texas-based company.
The contamination in Libby, Montana, has been a long-standing issue, with asbestos-tainted vermiculite mined from a nearby mountain and transported through the town for years. Asbestos-related diseases, ranging from lung complications to cancer, have affected thousands of individuals in the area.
The jury's verdict last year revealed that out of over 2,000 cases of asbestos-related diseases identified by the clinic, 337 were deemed to be based on false claims. This led to patients receiving Medicare and other benefits they were not entitled to.
BNSF alleged that the clinic submitted claims without proper verification from healthcare providers, relying solely on X-ray evidence. The clinic defended its actions by stating they followed federal guidance that deemed X-ray readings sufficient for diagnosing asbestos-related diseases.
Following the jury's decision, the clinic was ordered to pay $5.8 million in penalties and damages, with BNSF receiving a portion of the amount for bringing the lawsuit on behalf of the government. Despite the clinic's bankruptcy filing, the case was dismissed as government attorneys highlighted that taxpayers would bear the costs.
The clinic, which has certified over 3,400 cases of asbestos-related diseases and received substantial federal funding, plays a crucial role in providing services to victims of asbestos exposure in the Libby area. Under a federal health law provision, these individuals are eligible for taxpayer-funded services to address their medical needs and disabilities.
The Libby area's designation as a Superfund site two decades ago underscores the severity of the asbestos issue, with mine workers and residents suffering from hazardous exposure. BNSF, facing its own asbestos-related lawsuits, was recently held accountable for contributing to the illnesses and deaths of individuals exposed to asbestos through tainted mining materials.
The legal battle continues as the clinic appeals the hefty fine, with arguments scheduled to be heard by the 9th U.S. Circuit Court of Appeals. The outcome of this case will have significant implications for both the clinic and the affected individuals in the community.
