Carbon Health files for Chapter 11 bankruptcy relief with more than $100M in debt

February 4, 2026 - 01:34

The hybrid healthcare provider Carbon Health has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas. The company cites liabilities exceeding $100 million in its court filings, marking a significant setback for a firm that had rapidly expanded its footprint across the United States.

Carbon Health, which operates a network of nearly 100 physical clinics alongside a robust virtual care platform, announced on Monday that it has secured a restructuring agreement with its current lenders. This deal is framed as a critical step toward stabilizing the company's finances. According to the firm, the agreement charts a definitive course for recapitalization and will ultimately result in the business transitioning to new ownership.

The move to Chapter 11 is designed to allow Carbon Health to continue its operations uninterrupted while it implements the financial restructuring plan under court supervision. The company emphasized its commitment to maintaining services for its patients and partners throughout the process. This bankruptcy filing highlights the ongoing financial pressures within the primary care sector, even for companies that have blended digital and in-person care models in an effort to modernize healthcare delivery.