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Saturday, January 18, 2025

Montana asbestos clinic seeks to reverse $6M in fines, penalties over false claims - Financial Post

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BILLINGS, Mont. (AP) — A health clinic in a Montana town that was polluted with deadly asbestos will ask a federal appeals court on Wednesday to reverse almost $6 million in fines and penalties after a jury determined it submitted hundreds of false claims on behalf of patients.

The jury verdict came last year in a lawsuit brought by Texas-based BNSF Railway, which separately has been found liable over contamination in Libby, Montana, that’s sickened or killed thousands of people. Asbestos-tainted vermiculite was mined from a nearby mountain and shipped through the 3,000-person town by rail over decades.

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After BNSF questioned the validity of more than 2,000 cases of asbestos-related diseases found by the clinic, a jury last year said 337 of those cases were based on false claims, making patients eligible for Medicare and other benefits they shouldn’t have received.

Asbestos-related diseases can range from a thickening of a person’s lung cavity that can hamper breathing to deadly cancer. Exposure to even a minuscule amount of asbestos can cause lung problems, according to scientists. Symptoms can take decades to develop.

BNSF alleged the clinic submitted claims based on patient X-ray evidence that should have been corroborated by a health care provider’s diagnosis, but were not. Clinic representatives argued they were acting in good faith and following the guidance of federal officials who said an X-ray reading alone was sufficient diagnosis...



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