A health clinic in a Montana town plagued by deadly asbestos contamination has filed for bankruptcy protection after a judge ordered it to pay the government almost $6 million in penalties and damages for submitting false asbestos claims.
FILE - Unidentified road workers wear protective gear against possible asbestos contamination as they load material from a road resurfacing project in downtown Libby, Mont., April 28, 2011. A health clinic in the Montana town that's plagued by deadly asbestos contamination is liable for almost $6 million in penalties and damages after it submitted hundreds of false claims for government benefits.
The $6 million judgment against it came in a federal case filed by BNSF Railway under the False Claims Act, which allows private parties to sue on the government’s behalf. The clinic has denied any intentional wrongdoing and its attorneys have appealed the jury’s verdict to the 9th U.S. Circuit Court of Appeals.
The jury did not identify the 337 patients who were the subject of the false claims and federal officials have not said if they will lose any benefits. Under a provision in the 2009 federal health law, victims of asbestos exposure in the Libby area are eligible for taxpayer-funded services including Medicare, housekeeping, travel to medical appointments and disability benefits for those who can’t work.
In his July 18 judgment, Christensen blasted the clinic's “reckless disregard” for medical procedures and cited evidence from trial of high rates of opioid pain medication prescriptions for people who may not have had a legitimate asbestos-related diagnosis.
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