After more than a quarter century, Libby’s CARD Clinic will close at the end of August.

The announcement was made Monday in a press release from Executive Director Tracy McNew. 

It was about a year ago when the clinic moved its operations to 118 W. Third St. It was dedicated in February.

“CARD currently has 16 employees who will be affected and many of them have spent years caring for patients and families affected by Libby Amphibole asbestos exposure,” McNew said. 

According to McNew, the Center for Asbestos Related Disease’s federal grant funding was not renewed, which resulted in the upcoming closure. Because federal grant funding has provided nearly all of CARD’s operating revenue, the clinic will also begin the process of closing and dissolving the organization.

In August 2024, CARD received a new 5-year funding grant from the federal Agency for Toxic Substances Disease Registry, part of the Centers for Disease Control and Prevention. CARD has received previous iterations of this grant, made possible through the Environmental Health Hazards provision of the Affordable Care Act, since 2011.

McNew did address the grant.

“CARD understood the award to be part of a five-year project period expected to run through August 2029, with continued federal funding subject to approval during each continuation year. CARD was notified by ATSDR this month, during the second year of the project period, that it will not provide additional continuation of the grant beyond the current budget year which ends August 31. CARD was not given a more specific explanation beyond ATSDR’s written notice.”

The notice stated:

“We wanted to inform you that ATSDR has completed a review of the program and the award and has determined that we will not be providing an additional continuation year beyond the current project period. This decision reflects ATSDR's assessment of programmatic alignment, stewardship responsibilities, and the agency's current priorities regarding oversight and management of federal resources. The agency concluded that the current operational and institutional environment surrounding the program presents risks and oversight concerns that make continued federal funding inconsistent with agency priorities. ATSDR considered whether additional corrective actions, enhanced monitoring or modifications to the workplan could address these concerns, but determined that those measures would not sufficiently resolve the underlying issues.”

McNew also said CARD couldn’t state with certainty which factors ATSDR weighed unless it provides additional clarification.

“Because ATSDR’s notice refers generally to the “current operational and institutional environment,” “risks,” and “oversight concerns,” it’s hard to say what led to the ultimate determination. However, CARD believes the seizure of our assets by BNSF and the resulting issues involving federally funded property have significantly affected CARD’s operational environment. This has included unresolved issues involving federally funded assets, federal interest in property and equipment, and non-reimbursement for equipment that had previously been included in CARD’s approved federal budget and notice of award.”

CARD intends to continue grant-funded services through Aug. 31, including asbestos health screening, lung cancer screening, case management, outreach and education. However, CARD will no longer provide long-distance screening services because those services take additional time to process, and CARD does not want to begin services that cannot be completed before closure.

CARD is requesting approval to retain a small number of staff for a limited period after Aug. 31 to complete required grant closeout activities, support patient records access, and assist with transition planning if funding for that work is approved.

The federal government recently began a more stringent review of grants due to the perceived amount of fraud that was occurring.

In an Executive Order by Pres. Donald Trump, titled “Improving Oversight of Federal Grantmaking” and dated Aug. 7, 2025, he explained the reasoning to improve the process of Federal grant making while ending offensive waste of tax dollars.

“Every tax dollar the Government spends should improve American lives or advance American interests,” Trump wrote. “This often does not happen. Even for projects receiving Federal funds that serve an ostensibly beneficial purpose, the Government has paid insufficient attention to their efficacy.”

In September 2024, CARD lost an appeal to a federal jury’s $6 million judgment in June 2023. Jurors ruled that the clinic made or presented false claims 337 times, including 91 violations after November 2015.

CARD filed for Chapter 11 bankruptcy in August 2023, allowing it to continue operations. But the United States intervened in the bankruptcy proceeding and determined that the judgment should not be paid, so the bankruptcy was settled and dismissed in spring 2024.

The Clinic is also facing multiple lawsuits, both at the federal and local levels. 

General Star Indemnity Company, a subsidiary of Berkshire Hathaway, which also owns BNSF Railway, filed an amended suit Sept. 29, 2025, against the clinic and associated individuals, including Dr. Karen Lee Morrissette, Executive Director Tracy McNew, Physician Assistant Miles Miller, Michelle Boltz, R.N. and Board of Directors President Leroy Thom.

The suit alleges CARD officials misrepresented its application for a medical malpractice insurance policy that went into effect at the beginning of 2025.

General Star’s suit relates to the 2023 jury trial when a jury found the clinic had engaged in a fraudulent scheme to misdiagnose people with asbestos related disease. BNSF sued CARD in 2019, claiming more than 1,000 fraudulent diagnoses. Ultimately, the jury ruled that 337 cases were frauds.

Most of the claims at issue in the trial concerned the submission of EHH forms to Medicare, which certified that patients had been diagnosed with an asbestos-related disease and were eligible for coverage under an Affordable Care Act provision created to respond to Libby’s environmental health threat. 

According to CARD Executive Director Tracy McNew, prior to trial, Judge Dana Christensen made a legal ruling that any claim based only on an imaging read by an outside “B-reader” radiologist was invalid, making it likely that those certifications constituted a bulk of the 337 claims.

CARD is also the target of a local lawsuit filed Oct. 10, 2024, in Lincoln County District Court. It alleges medical malpractice, wrongful death and claims of disabling Lincoln County residents by prescribing them opioid pain killers following the misdiagnosis of health issues. 

The civil suit alleges medical malpractice against Dr. Charles Brad Black and the clinic, including McNew. The court filing also argues the facility knew or should have known both men didn’t satisfy diagnostic requirements for asbestos-related disease and should not have been giving opioid pain medications in the manner prescribed by the clinic's providers.  

That suit is still pending in district court.

“For more than 20 years, the Center for Asbestos Related Disease, Inc. (CARD) has had the privilege of serving the Libby community and asbestos-exposed individuals and families,” McNew said in a news release. “CARD is deeply grateful to the patients, families, staff, providers, researchers, community members, partners and supporters who have been part of this work.

“This is a difficult transition for CARD, its staff, its patients and the community. CARD asks for patience and understanding as staff work through the many details involved in closing patient services, completing pending work, preserving access to medical records, supporting transition planning and meeting federal grant closeout requirements.”

In relation to the clinic’s upcoming closure, McNew said the Agency for Toxic Substances and Disease Registry (ATSDR) has stated that it will work with CARD on an orderly closeout process consistent with federal grant requirements. She also said ATSDR intends to make an announcement regarding the Asbestos Screening and Innovation Program continuation later this week. CARD will share additional information as it becomes available.

McNew said Libby’s experience has made a lasting impact on public health, disaster response, asbestos-related disease research and patient care. Work connected to Libby and the CARD program has contributed to more than 150 scientific papers, helping further scientific knowledge, improve care, inform public health practice, and guide future response and prevention efforts.

“We are deeply grateful to the Libby community and to everyone who has supported CARD’s work for more than two decades,” said Tracy McNew, Executive Director of CARD. “This community has helped change what is known about asbestos exposure, long-term community health needs, and public health response. CARD’s operations are coming to an end, but the impact of this work will continue.”

Patients who would like copies of their medical records are encouraged to request them as soon as possible so CARD has time to process requests with limited staffing. Records will also remain available after CARD closes, but the post-closure request process is still being developed and will be shared when available.

Community members and patients with questions may stop by CARD at 118 W. 3rd Street in Libby during regular office hours, Monday through Wednesday, 8:00 a.m. to 5:00 p.m., or call (406) 293-9274.