A health clinic in Libby, Montana, affected by asbestos contamination has been ordered to pay nearly $6 million in penalties and damages for submitting false asbestos claims, according to a ruling by a judge. The clinic submitted 337 false claims, making patients eligible for Medicare and other benefits they weren’t entitled to receive. As a result, the clinic, which has received federal funding, must now face the consequences of its actions.
This judgment came from a case filed by BNSF Railway in 2019 under the False Claims Act, which allows private parties to sue on behalf of the government. BNSF, being a defendant in numerous asbestos-related lawsuits itself, accused the clinic of submitting claims without proper confirmation of asbestos-related diseases in patients.
After a jury agreed with BNSF last month, U.S. District Judge Dana Christensen stated in an order on July 18 that a severe penalty was necessary to deter future misconduct. The judge raised concerns about the clinic’s prominent doctor, Brad Black, diagnosing himself with asbestos-related disease, as well as a nurse approving benefits for her own mother. Furthermore, the judge cited trial evidence of excessive opioid prescriptions from the clinic for individuals without legitimate asbestos-related diagnoses, thus indicating a disregard for medical protocol and legal requirements.
According to the law, the judge tripled the damages assessed by the jury, totaling around $3.3 million, and imposed an additional $2.6 million in penalties. BNSF will receive 25% of the proceeds, as allowed under the False Claims Act. Despite no criminal charges being filed against the clinic, federal prosecutors declined to intervene in the case.
The clinic’s lawyers have appealed the jury’s verdict to the 9th U.S. Circuit Court of Appeals, a move that, if unsuccessful, could push the facility towards bankruptcy due to the potential multimillion-dollar judgment.
The clinic’s reputation may also suffer, impacting lawsuits brought by asbestos victims against BNSF and other entities that have been held liable for the contamination in Libby. BNSF operated a railyard in the town, where asbestos-contaminated vermiculite was transported from the nearby W.R. Grace Co. mine. Lena Kent, a spokesperson for the railway, criticized the clinic for wasting taxpayer money and diverting resources from those genuinely in need.
Clinic director Tracy McNew and Dr. Brad Black did not respond immediately to requests for comment, but the consequences of this verdict could be detrimental to the clinic, both financially and reputationally.
The Libby area has been designated as a Superfund site for the past 20 years due to asbestos-related illnesses and deaths among mine workers and their families. It’s estimated that at least 400 individuals have died and thousands have become sick from asbestos exposure in the area.
According to court documents, the clinic has certified over 3,400 people with asbestos-related diseases and has received more than $20 million in federal funding. The defense of the clinic in the false claims case was hindered by a ruling that prevented former U.S. Senator Max Baucus from testifying. Baucus helped create a provision in the Affordable Care Act that made Libby asbestos victims eligible for government benefits, and he believed the clinic was complying with the law.
Asbestos-related diseases can range from lung cavity thickening to life-threatening cancer. Scientists have found that even minimal exposure to asbestos can cause lung problems, and symptoms may take decades to appear.
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