Closure of CARD Clinic Raises Health Concerns in Libby

News Summary

The Center for Asbestos Related Disease (CARD) clinic in Libby, Montana, has shut down due to a court order following allegations of fraud. This closure leaves thousands without critical healthcare services for asbestos-related diseases. While BNSF Railway won a legal battle against CARD, concerns grow over the health implications for the community, which has long relied on the clinic. Local authorities emphasize the need for healthcare solutions as the clinic’s closure poses a significant public health risk.

Closure of CARD Clinic Raises Health Concerns in Libby

The Center for Asbestos Related Disease, Inc. (CARD), a crucial healthcare provider for asbestos-exposed residents of Libby, Montana, has been forced to cease operations after a court order was implemented by the Lincoln County Sheriff’s Office on May 7, 2025. This shocking closure follows a tumultuous legal battle, with the clinic embroiled in allegations of filing fraudulent claims that have culminated in significant financial and reputational turmoil.

BNSF Railway Claims Victory in Legal Battle

BNSF Railway has emerged victorious in its pursuit of a $3.1 million settlement against CARD, claiming the clinic filed dozens of fraudulent medical claims over several years. This judgment stems from a ruling by a federal jury in 2024, which identified asbestos-contaminated vermiculite in the railway’s railyard as contributing to the deaths of two Libby residents diagnosed with mesothelioma.

The clinic, which has served thousands of locals since its establishment in 2000, has become a lifeline for those affected by asbestos exposure from Libby amphibole asbestos, a menace stemming back to when a local gold mine began operations in the 1880s. The negligence of the W.R. Grace company, which managed the site from 1963 until its closure in 1990, has left a lasting impact, resulting in approximately 2,400 former mine workers diagnosed with asbestos-related diseases.

Implications of the COURT ORDER

Lincoln County Sheriff Darren Short voiced concerns about the wider implications of the clinic’s closure, emphasizing how critical the services of CARD are to the well-being of the community. He noted that the future of the clinic and its services rests heavily on the decisions made in the courts.

The Sheriff’s office took drastic measures, including seizing the clinic’s bank accounts and property, ensuring the building remains secured until a resolution is reached. Meanwhile, CARD’s Executive Director has expressed frustration, arguing that the court’s decision to enforce a writ of execution lacked the necessary approval from Bankruptcy Court, and has committed to fighting for the clinic’s reopening.

Previous Legal Troubles for CARD

In September 2024, CARD lost an appeal regarding a $6 million judgment for submitting false claims, which a jury determined involved 337 fraudulent submissions. Prior to its closure, the clinic had averaged about 35 new patients per month and employed approximately 19 individuals.

As the financial turmoil deepened, CARD filed for Chapter 11 bankruptcy in August 2023, but this had been dismissed in Spring 2024 following U.S. intervention to refuse the judgment’s payment. A series of legal challenges has compounded the clinic’s troubled position, including a local lawsuit filed in October 2024 citing medical malpractice, wrongful death, and improper prescribing of opioids.

The Ongoing Asbestos Crisis

The Environmental Protection Agency (EPA) had previously designated Libby as a Superfund site in 2002 due to widespread asbestos contamination, with cleanup efforts still ongoing. This designation followed extensive media coverage highlighting the dangers posed by asbestos in the region. The fallout from decades of negligence and inaction continues to plague Libby, as recent and ongoing claims evidence the devastating legacy of these historical operations.

Despite the shutdown, CARD has expressed a relentless commitment to its mission and is preparing to fight back in the courts with hopes of reopening, underscoring the urgent need for healthcare services to treat asbestos-related diseases in the community.

Conclusion: A Community At Risk

The closure of the CARD clinic is not merely a legal issue; it represents a serious public health crisis for Libby residents who have long relied on its critical services. With the ongoing presence of asbestos-related health complications looming large over the community, the decision-makers in court and beyond need to weigh the deep humanitarian implications of their judgments, as the battle against asbestos-related diseases in Libby is far from over.