AG Bonta announced a settlement with Carbon Health Technologies, Inc., its affiliated medical groups, and its co-founder and former CEO, Eren Bali, resolving allegations that the company violated California’s prohibition on the corporate practice of medicine, engaged in false advertising, used unlawful consumer contracts, and improperly billed patients and insurance providers. Founded in the Bay Area in 2015, Carbon Health operates over 80 clinics across eight states, including 54 in California. As alleged in the complaint filed alongside the settlement, an investigation by the California Department of Justice found that Carbon Health used a structure in which a corporate entity not licensed to provide medical care effectively owned and controlled all aspects of the medical practice, in violation of California’s prohibition on the corporate practice of medicine.

“In California, medical decisions must be made by licensed healthcare professionals whose duty is to prioritize patient care, not by companies focused on profits. This settlement holds Carbon Health accountable for violating California’s longstanding protections against the corporate practice of medicine and for engaging in unlawful business practices. It also sets a significant precedent by showing that healthcare businesses can be restructured to protect patients, preserve physicians’ independent medical judgment, and comply with California’s laws.” -AG Bonta