Top News

Primary and urgent care company Carbon Health Technologies will pay $4.4 million to settle allegations that it violated California’s ban on the corporate practice of medicine, engaged in false advertising, improperly billed patients and payers, and used illegitimate consumer contracts. The crux of the matter stems from Carbon Health’s “friendly professional corporation” structure, which enabled the company to act as a managed services organization with controlling rights that usurped those of physician owners. Carbon Health, which operates 80 clinics across eight states, recently emerged from bankruptcy.
Carbon Health co-founder and former CEO Eren Bali will pay $100,000 in separate settlement fees. He left the company in September 2024 and launched AI interface startup Monogram a year later.
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Acquisitions, Funding, Business, and Stock

Psychiatric care group PsychPlus acquires digital therapeutic and mental healthcare provider Koa Health. PsychPlus will integrate Koa’s app with its homegrown EHR and practice management systems. Koa Health founder and CEO Oliver Harrison, MD will join PsychPlus as president.
Announcements and Implementations

Physicians East (NC) implements EHR and patient portal software from NextGen Healthcare.
White-label telemedicine company Beluga Health adds Dario Health’s app-based chronic care management capabilities to its platform.
Sevocity adds ambient clinical intelligence from Suki to its EHR and practice management software for independent practices.
Women’s healthcare provider Tia will offer its members virtual nutrition therapy from Berry Street.
Research and Innovation
New data from MGMA show that a majority of surveyed practice leaders plan to make workforce their biggest area of investment for the remainder of the year, followed by health IT, revenue cycle, and patient access. When it comes to hiring, practices find themselves in a competitive market, up against hospitals for medical staff and restaurants, retail, and call centers for front-desk help. Just over a third of those surveyed are looking to automation investments to help their workforce work more efficiently and avoid burnout.
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