National Law Review
7/3/2026

Carbon Health Settlement Continues Pattern of Heightened California CPOM Enforcement
Short summary
Carbon Health settled a $4.4M penalty with California's Attorney General for corporate practice of medicine (CPOM) violations and deceptive billing practices. The case reflects aggressive AG enforcement against management services organizations that exercise excessive control over physician-owned practices. Healthcare providers using PC/MSO structures should audit governance, payor contracting, and patient communications for CPOM compliance.
- •$4.4M settlement for MSO control violations and misleading billing claims
- •California AG prioritizing enforcement of longstanding CPOM restrictions on non-physician control
- •Healthcare operations should review PC/MSO relationships and public-facing communications for regulatory risk
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