A federal appeals court has affirmed a lower court decision regarding a Montana health clinic that was found to have submitted numerous false asbestos claims on behalf of patients. The clinic, located in Libby, Montana, a town where many individuals have succumbed to asbestos exposure, was determined to have filed over 300 fraudulent asbestos claims, resulting in patients receiving Medicare and other benefits they were not entitled to.
The Center for Asbestos Related Disease in Libby sought to challenge the ruling from last year, but a three-judge panel at the 9th Circuit Court of Appeals upheld the decision. The panel dismissed the clinic's argument that its actions were sanctioned by federal authorities and found that the judge's jury instructions were appropriate.
Court documents revealed that the clinic, which has received substantial federal funding and certified thousands of individuals with asbestos-related illnesses, had processed claims for patients without confirmed diagnoses from radiologists. The case stemmed from a lawsuit brought against the clinic by BNSF Railway, which has faced liability issues over contamination in Libby and is a defendant in numerous asbestos-related lawsuits.
Following the initial ruling, the clinic was ordered to pay nearly $6 million in penalties and fees. However, a settlement reached in bankruptcy court with BNSF and the federal government will exempt the clinic from making this payment.
The town of Libby was designated a Superfund site twenty years ago after reports emerged of mine workers and residents falling ill and dying due to asbestos exposure from vermiculite mining operations conducted by W.R. Grace & Co. The contaminated vermiculite was transported through Libby via rail, leading to widespread health issues in the community.
Scientists warn that even minimal exposure to asbestos can result in severe lung complications, with asbestos-related diseases ranging from lung cavity thickening to fatal cancers. Symptoms of these illnesses may take decades to manifest, underscoring the long-term health risks associated with asbestos exposure.
