May 16, 2025 | JacobiJournal.com – The asbestos clinic closure in Libby, Montana, has sparked renewed concern over public health and corporate accountability. Authorities shut down the Center for Asbestos Related Disease (CARD) this week to enforce a $3.1 million debt owed to BNSF Railway, following a controversial fraud judgment. The abrupt asbestos clinic closure leaves thousands of residents—many exposed for decades to toxic vermiculite dust—without critical respiratory care and disease monitoring. As the only local facility specializing in asbestos-related illnesses, CARD’s shutdown raises questions about healthcare access and the lasting consequences of environmental disasters.
Asbestos Clinic Closure Sparks Public Health Concerns
On Wednesday, the Lincoln County Sheriff’s Office seized and shut down the Center for Asbestos Related Disease (CARD). Located in a town of just 3,000 people, the clinic has operated for over two decades near a now-defunct vermiculite mine that emitted toxic asbestos dust. Thousands of residents have suffered health consequences, and CARD had become a cornerstone of their medical care.
Despite its long-standing role in treating asbestos-related illnesses, the clinic now faces closure because of a $6 million fraud judgment awarded in 2023 to BNSF Railway. After legal fees and interest, BNSF claims it is owed $3.1 million.
Allegations of Fraud and Fallout from Court Case
The legal dispute began when BNSF, a Texas-based railway, sued CARD under the False Claims Act. The suit alleged that the clinic fraudulently diagnosed patients with asbestos-related illnesses to qualify them for federal Medicare benefits. According to court findings, 337 out of over 2,000 diagnoses were ruled invalid.
BNSF transported contaminated material through Libby for decades, and it continues to face lawsuits from local victims of asbestos exposure. Nonetheless, the company prevailed in this case by claiming that CARD manipulated patient data, thereby defrauding the government. As a whistleblower under federal law, BNSF was entitled to a portion of the government’s recovery from the judgment.
BNSF spokesperson Kendall Kirkham Sloan defended the closure, stating:
“The judge determined the amount of damages to be repaid, and the process for recovery is set by law.”
Bankruptcy Complicates the Enforcement
However, the situation is far from resolved. After the judgment, CARD filed for bankruptcy and reached a court-approved settlement with the federal government, which included BNSF. According to James “Andy” Patten, the clinic’s bankruptcy attorney, the railway’s recent actions violated that agreement.
“This seizure undermines a settlement that was approved by a federal court,” Patten argued.
When asked about the bankruptcy terms, Sloan declined to comment.
Community Faces Growing Health Risks
Tracy McNew, Executive Director of CARD, expressed deep concern for the community.
“CARD remains committed to its patients and the Libby community and will fight to reopen as soon as possible,” she stated.
Until the closure, CARD served as the only local medical facility offering asbestos-related health screenings, monitoring, and treatment. Many in Libby fear that without this specialized care, health conditions will go undiagnosed and untreated—especially among the town’s aging population, which faces elevated risks from long-term asbestos exposure.
The asbestos clinic closure not only disrupts continuity of care but also eliminates access to early detection services crucial for those exposed decades ago. Experts warn that mesothelioma, asbestosis, and other related conditions can develop silently for years, making regular checkups essential for early intervention. Public health advocates and residents alike argue that the sudden loss of CARD’s services creates a healthcare vacuum that federal or state resources have yet to fill.
In the wake of the asbestos clinic closure, several community groups are calling on lawmakers to intervene and provide emergency medical access for affected residents. The situation highlights broader concerns over how legal judgments can impact essential healthcare infrastructure in underserved, contaminated communities.
Learn how the BNSF case leveraged federal law—explore the U.S. Department of Justice’s official overview of the False Claims Act at justice.gov.
FAQs: About the Asbestos Clinic Closure and Its Impact
How is the asbestos clinic closure affecting long-term patient care in Libby?
The asbestos clinic closure has disrupted access to specialized screenings and treatment, putting long-term patients at risk of undiagnosed or worsening conditions.
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