Carbon Health
Tech-enabled urgent and primary care clinic chain now run by its lenders.
On the record
Checkpoint: First post-emergence quarterly financials and clinic count report
The call
Carbon Health emerged from bankruptcy owned by its lenders, promising an undefined AI plan while larger, healthier rivals keep expanding around it.
Carbon Health is a network of urgent care and primary care clinics that got smaller after the pandemic boom ended. It filed for bankruptcy in early 2026 and came out under control of a new owner, Future Solution Investments, which says it wants to build an AI-driven healthcare system but has not shown any customers or products yet. The company faces serious competition from much larger rivals like CVS Health and Amazon's One Medical who own their own clinics, plus from AI software makers like Abridge and Ambience that are automating the administrative work Carbon Health used to do, and from Epic which is adding AI features directly into the tools doctors already use. The one thing that could turn this around is if the new owner actually launches a working AI product that hospitals or insurance companies will pay for within the next year, but right now Carbon Health is being dismantled piece by piece with no public evidence that plan is real.
Why
01
AI pressure: Abridge, Ambience, DeepScribe (AI scribe/charting vendors) and Epic's native AI. AI scribe tools from Abridge and Ambience already copy Carbon Health's tech layer, leaving little tech edge beyond the clinic walls. Could AI do the core job? Yes, likely.
02
Bigger players: CVS Health and Amazon's One Medical. CVS Health and Amazon's One Medical run bigger clinic networks and never needed a bankruptcy court to keep growing. Could a giant copy it? Yes, easily.
03
What protects it. Lenders wiped $100M of debt and added $33M cash, buying time before any real product has to prove itself.
What would change this call
FSI announces a named paying external customer for a CarbyOS AI product by June 2027. Would show the AI turnaround strategy is real, not just messaging.
Clinic count stabilizes versus further sales like the El Camino deal. Would show the shrinking footprint has stopped and network is not still liquidating.
Post-emergence 2026 revenue figures released and compared to the $154M 2025 base. Would show whether the multi-year revenue decline has reversed or continued.
Clinic count stabilizes versus further sales like the El Camino deal. Would show the shrinking footprint has stopped and network is not still liquidating.
Post-emergence 2026 revenue figures released and compared to the $154M 2025 base. Would show whether the multi-year revenue decline has reversed or continued.
Key numbers
- Revenue fell to $154M in 2025, from $230M peak in 2021
- Headcount down to 1,146, from 2,309 in 2021
- Unsecured creditors recover about 10 cents on the dollar
Named risks
- No disclosed concrete AI product plan under new owner FSI as of June 2026.
- Continued piecemeal clinic divestitures (e.g., El Camino Health deal) shrinking network footprint.
- CA AG settlement forces unwinding of MSO physician-control structure that underpinned operations.
- Revenue decline and multi-year headcount reduction signal ongoing business contraction.
- General unsecured creditors recovering only about 10 cents on the dollar could invite further litigation.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| Amazon (One Medical) | losing to | One Medical reported larger and Amazon-backed since Feb 2023, while Carbon Health went through Chapter 11 in Feb 2026 |
| CVS Health | contesting | CVS invested $100M in Jan 2023 and piloted in-store clinics, while also running its own competing MinuteClinic network at national scale |
| AI scribe vendors (Abridge, Ambience, DeepScribe) | losing to | These vendors commoditize the documentation automation Carbon Health markets via CarbyOS as of Feb 2026 |
| Forward Health | contesting | Forward shut down in Nov 2024 after raising $400M betting on AI plus hardware removing humans from primary care |
Questions people ask
- Is Carbon Health still in business after its bankruptcy?
- Yes. Carbon Health filed Chapter 11 on Feb 2, 2026 and emerged June 15, 2026 under a confirmed reorganization plan. Senior lenders converted about $100M of debt into 100% of new equity, adding $33M in new capital, with Future Solution Investments taking majority control.
- Who owns Carbon Health now?
- As of June 15, 2026, Future Solution Investments (FSI), a Wyoming-based private investment fund, holds majority control after lenders converted roughly $100M of debt into 100% of new equity in Carbon Health's Chapter 11 reorganization plan.
- Is Carbon Health profitable?
- No clear profitability data is public. Sacra estimates 2025 revenue at about $154M, down from $166M in 2024 and well below the ~$230M 2021 COVID-era peak, and the company just exited bankruptcy in June 2026, suggesting it was not sustainably profitable.
- Has Carbon Health had layoffs?
- Yes. Headcount fell from about 2,309 employees in 2021 to roughly 1,146 by December 2025 per Revelio Labs, with documented cuts of 250 (June 2022), 200 (Jan 2023), 114 (Oct 2023), and 56 (Feb 2024).
- Could AI replace Carbon Health's clinics?
- AI is already automating parts of its workflow. Carbon Health has claimed its CarbyOS tool cuts documentation time by about 75% in pilots, and new owner FSI stated in June 2026 intent to build an 'AI-driven healthcare system,' but no concrete AI product plan has been disclosed.
- Who is Carbon Health's biggest competitor?
- One Medical, owned by Amazon since February 2023, is the closest comparably positioned tech-enabled primary care peer and is generally reported as larger by clinic count. CVS Health, also a Carbon Health investor since January 2023, operates a competing clinic model at national scale.
Timeline
- 2026-07-15Bankruptcy case administrative and professional fee deadlines set around this date
- 2026-07-08El Camino Health seeks to acquire four Carbon Health clinic sites via Section 363 sale
- 2026-06-26California AG settlement: $4.4M penalty on Carbon Health, $100K on founder Eren Bali, over CPOM violations
- 2026-06-15Reorganization plan takes effect; FSI becomes majority owner, old equity wiped
- 2026-05-29Bankruptcy court confirms Third Amended Plan of Reorganization
- 2026-02-02Carbon Health and 28-29 affiliates file Chapter 11 in Southern District of Texas
- 2026-01-01California SB 351 takes effect, restricting PE and hedge-fund backed MSOs
- 2024-08-01Founder Eren Bali steps down as CEO to return to Udemy; COO Kerem Ozkay becomes CEO
- 2023-01-10CVS Health Ventures invests $100M in Series D1 round at reported ~$1.4B valuation
- 2021-08-01Blackstone-led $350M Series D round closes at reported $1.4B to $3.3B valuation
Revision history
22 July 2026
First assessed. Little protection left. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- Carbon Health Chapter 11 dual-track filing (2026-02-08)
- Carbon Health Emerges From Bankruptcy With AI-Focused Turnaround Plan (2026-06-04)
- Carbon Health Confirms Debt-for-Equity Plan (2026-07-08)
- Carbon Health revenue, funding & news (2026-03-23)
- Carbon Health Number of Employees 2026 (2026-06-29)
- Carbon Health, Headcount, Funding & Open Jobs (2026-06-27)
- AG Bonta Carbon Health Settlement (2026-06-26)
- Carbon Health (2026-07-20)
- CVS Health's VC arm invests $100M in Carbon Health (2023-01-10)
- Carbon Health's Bankruptcy and the Economics of Scaling Care (2026-02-26)
- CARBON HEALTH IMPLEMENTS FINANCIAL RESTRUCTURING (2026-02-02)
- Carbon Health OS clinic model (2026-02-26)