After more than a quarter century, the Center for Asbestos Related Disease Clinic in Libby will close at the end of August.

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

“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 in the release.

According to McNew, the clinic's federal grant funding was not renewed, which resulted in the upcoming closure. Because grant 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 five-year grant from the federal Agency for Toxic Substances Disease Registry, part of the Centers for Disease Control and Prevention. The clinic has received previous iterations of the grant -- made possible through the Environmental Health Hazards provision of the Affordable Care Act -- since 2011.

“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," McNew said. "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.”

McNew was unsure which factors were weighed in determining the grant status, although the clinic believes the seizure of its assets following a suit by BNSF Railway "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,” McNew stated.

The clinic opened in 2000 and has served thousands of area residents exposed to Libby amphibole asbestos. Fibers from the asbestos tied to vermiculite mining that began in the 1920s can embed in lung tissue and cause fatal lung disease.

CARD intends to continue grant-funded services through Aug. 31, including asbestos health screening, lung cancer screening, case management, outreach and education. 

The clinic will no longer provide long-distance screening services because those services take additional time to process and may not be completed before closure.

The clinic 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. President Donald Trump signed the executive order Improving Oversight of Federal Grantmaking in August 2025.

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.

The clinic filed for Chapter 11 bankruptcy in August 2023, allowing it to continue operations, but the federal government intervened and determined that the judgment should not be paid. The bankruptcy was settled and dismissed in spring 2024.

The clinic is also facing multiple lawsuits at the federal and local levels. 

General Star Indemnity Company, a subsidiary of Berkshire Hathaway, which owns BNSF Railway, filed an amended suit in September 2025 against the clinic and associated individuals. 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 Railway sued the clinic in 2019, claiming more than 1,000 fraudulent diagnoses. Ultimately, the jury ruled that 337 cases were frauds.

CARD is also the target of a local lawsuit filed October 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. 

That suit is still pending in district court.

MCNEW SAID the Agency for Toxic Substances and Disease Registry has stated that it will work with CARD on an orderly closeout process consistent with federal grant requirements. She also said the agency intends to make an announcement regarding the Asbestos Screening and Innovation Program continuation later this week. 

McNew said Libby’s experience has made a lasting impact on public health. 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, she said.

“This community has helped change what is known about asbestos exposure, long-term community health needs, and public health response," she said. "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 a.m. to 5 p.m., or call 406-293-9274.