Closure Looms Over Asbestos Clinic in Libby, Montana

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News Summary

The Center for Asbestos Related Disease in Libby faces potential closure due to a court order amid allegations of fraudulent claims.

Closure Looms Over Asbestos Clinic in Libby, Montana

The Center for Asbestos Related Disease, Inc. (CARD) in Libby, Montana, is facing a dire situation as a court order issued by the Lincoln County Sheriff’s Office threatens to close its doors. This distressing development stems from a writ of execution that seeks a staggering $3.1 million, following a controversial lawsuit brought forth by BNSF Railway.

A Fraudulent Claims Controversy

The judgment against CARD highlights allegations of fraudulent claims related to patients suffering from asbestos exposure. According to court findings, this misconduct has resulted in over $1 million in damages. The writ of execution was officially filed on February 12, 2025, and was received by the Sheriff’s Office just weeks later, on March 5, 2025.

Operating since 2000, CARD has been a lifeline for thousands of residents in Libby, who have been affected by the serious health impacts of Libby amphibole asbestos. Originally a department of St. John’s Lutheran Hospital, CARD transitioned to a nonprofit status in 2003, devoted to serving the local community’s healthcare needs.

The Asbestos Legacy of Libby

The saga of asbestos in Libby dates back to 1881 when vermiculite mining began. The ramifications of this industrial activity have been catastrophic, with Libby being placed on the EPA’s Superfund program National Priorities List in 2002. Several legal proceedings have drawn national attention, especially as BNSF Railway has been implicated in the asbestos contamination linked to the local railyard.

A significant case in 2024 revealed that the negligence of BNSF Railway was directly related to the negligent deaths of local residents Thomas Wells and Joyce Walder, both succumbed to mesothelioma—a devastating form of cancer linked to asbestos exposure.

Community Concerns Over Health and Employment

In light of the potential closure, Lincoln County Sheriff Darren Short has voiced profound concerns regarding the health implications for the local community and the welfare of employees at CARD. The court order’s executions have led to the seizure of CARD’s bank accounts and property, significantly crippling the clinic’s ability to operate.

Financial Struggles and Legal Proceedings

CARD’s financial challenges have escalated since filing for Chapter 11 bankruptcy in August 2023. Following a trial, the clinic was hit with a hefty $6 million judgment after a jury found that it had filed or presented false claims over 337 instances. The struggles worsened when federal authorities intervened in the bankruptcy proceedings in 2024 and settled the case without paying the judgment, further complicating the clinic’s operational viability.

Additionally, CARD is currently embroiled in a separate local lawsuit surrounding accusations of medical malpractice and wrongful death involving opioid prescriptions, indicating a troubling legacy of health challenges in this small community.

The Threat to Community Health

A 2025 story revealed the looming doubt over CARD’s critical operational grant from the CDC, which accounts for an astonishing 80% of the clinic’s budget. Despite being recognized as a Center of Excellence by the Montana House of Representatives in May 2023, which could potentially unlock additional funding, the ongoing legal troubles have overshadowed these accolades.

Health Implications of Asbestos Exposure

With more than 2,400 asbestos-related disease diagnoses reported among Libby residents, the fallout from contamination remains a pressing challenge. Experts warn that even minimal exposure to asbestos can lead to severe lung complications, with symptoms that frequently take decades to manifest.

Once a thriving mining town, Libby has been transformed into a landscape marked by health crises and ongoing remediation efforts due to asbestos contamination. While legal claims have resulted in substantial settlements for affected individuals—totaling $68 million against the state for its failure to adequately inform residents—the struggles of institutions like CARD serve as a stark reminder of the ongoing plight faced by this community.