Carbon Health Filed for Chapter 11 as Urgent Care Chain Seeks Reset

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Pandemic Aftershocks and Market Pressures

Carbon Health said it began to feel mounting financial strain after the COVID-19 pandemic, as demand patterns shifted and capital markets for healthcare companies tightened.

The same forces that once propelled rapid growth — surging telehealth visits and investor enthusiasm — later receded, leaving the company navigating a more unforgiving landscape.

Over the past year, Ozkay said, the company has narrowed its operational footprint, streamlined its structure and reinforced financial discipline.

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“By using the Chapter 11 process to implement a transaction that will right-size our capital structure, we expect to emerge as a more resilient organization with the flexibility needed to support sustainable growth and continue delivering best-in-class care,” he said.

Operations to Continue Without Disruption

Despite the bankruptcy filing, Carbon Health emphasized that day-to-day operations will continue uninterrupted.

“It will be business as usual while we complete the restructuring and sale,” Ozkay said. “Patients should experience no disruption to their care.”

The company said it will continue offering urgent and primary care services at its clinics and through virtual appointments when appropriate. Patients will maintain full access to their medical records, and their health information will remain secure, according to the release.

Founded in 2015, Carbon Health positions itself as a health technology company integrating digital tools with traditional clinical services.