California settles with bankrupt Carbon Health, signaling crackdown on digital health workarounds

At the end of June, California's attorney general reached a settlement with Carbon Health, a clinic operator that has filed for bankruptcy.

The settlement follows accusations from the state Justice Department that Carbon Health breached a ban on certain practices, prompting regulatory scrutiny.

Officials said the agreement serves as a warning to other digital-health providers that similar workarounds could attract enforcement action.