The healthcare landscape in the United States is undergoing a revolution, one significantly shaped by technology and innovative thinking. At the forefront of this change are entrepreneurs like Eren Bali, the co-founder and CEO of Carbon Health, and his partner Caesar Djavaherian. Together, they are reimagining the primary care model, driven by a straightforward yet profound belief: access to quality healthcare should not be an uphill battle.
As the COVID-19 pandemic laid bare the flaws in traditional healthcare systems, these two visionaries saw an opportunity to build something entirely new. Their company, Carbon Health, aims to make healthcare more efficient, more caring, and more accessible—principles that resonate deeply during these times of crisis.
Bali, who originally hails from southeastern Turkey, understands the struggles many face when navigating the U.S. healthcare system. He points out that countless hospital executives argue that running a business on Medicare rates is nearly impossible due to the lower payments for services compared to operational costs. They often justify their financial models through a lens of unavoidable cost-shifting, but Bali disagrees. "There's so much waste because providers are so used to charging through the roof in this country, they've never thought about being efficient," he claims.
Carbon Health is a startup that has treated over a million patients in a short span, utilizing advanced technology to bridge gaps in care. They offer a hybrid model incorporating both digital tools and brick-and-mortar clinics. This blend allows for a more dynamic relationship with patients, affording them the convenience of virtual care while retaining the personal touch and immediacy of physical visits.
One of the critical innovations introduced by Bali and Djavaherian is a seamless technology platform that integrates electronic medical records, patient communication, and analytics. This system minimizes the time doctors spend on administrative tasks, thereby allowing them more time for direct patient care. Djavaherian, who has experienced firsthand the burdensome nature of outdated medical records systems, emphasizes the importance of creating tools clinicians genuinely want to use. "Doctors love tech just as much as everyone else. What we hate is bad technology," he asserts.
Their diverse backgrounds have equipped them with the skills and insights necessary to revolutionize patient care. Bali’s journey in tech began with the online education platform Udemy, which he co-founded and grew into a unicorn valued at over $3 billion. Following this success, he pivoted his attention to healthcare, motivated by personal experiences involving his mother’s medical challenges. He quickly realized that while healthcare technology existed, it was often not designed with the clinician or patient in mind, leading to inefficiencies.
Bali’s partnership with Djavaherian was a natural alignment of their shared ambitions to remedy these legacy issues. Together, they have grown Carbon Health from just seven clinics in 2019 to over 80 locations across 12 states, with ambitious plans for further expansion. Carbon Health was recently valued at approximately $3.3 billion following a substantial funding round of $350 million led by investment giants including Blackstone's Horizon platform.
The impressive growth trajectory of Carbon Health was accelerated by its formidable response to the COVID-19 pandemic, during which the company administered more than 1.4 million COVID-19 tests and 1.5 million vaccinations. This response not only highlighted their operational capacity but also cemented their position as a leader in urgent and primary care.
Both Bali and Djavaherian firmly believe in the importance of physical clinics as part of a holistic healthcare strategy. Unlike many tech companies focusing solely on telehealth, they recognize that brick-and-mortar presence is pivotal for high-quality patient care. In their view, health is best addressed through a blend of in-person and virtual offerings, facilitating connections that improve patient outcomes.
Reflecting on this duality, Djavaherian notes, "Venture capitalists, in general, passionately hated anything that touches brick and mortar. I was passionately opinionated that without physical locations, there's no great healthcare." This is a bold stance, particularly as the pandemic has encouraged many providers to lean more heavily into digital-first offerings. Yet, the model employed by Carbon demonstrates that there is room for both avenues to coexist and flourish.
Apart from expanding its clinic footprint, Carbon Health is also working on refining its technological platform, which includes advanced features such as machine learning to enhance clinical diagnosis and patient trajectory analysis. Djavaherian elaborates on how this technology can assist in clinical decision-making: it can recognize when symptoms point to a potential severe health issue that may otherwise be overlooked.
As successful as they are, Bali's vision extends beyond numbers and revenue. He has expressed ambitions for Carbon Health to go public, articulating a readiness to meet the operational and financial metrics necessary for an independent public company as early as next year. This potential IPO signifies not just personal success but a larger validation of their model in the broader context of U.S. healthcare.
Furthermore, the overarching philosophy behind their business is steeped in accessibility and affordability. Carbon Health consciously avoids subscription models or service restrictions based on income brackets, ensuring that care is available to everyone, regardless of their socio-economic status. This inclusive approach is both a business strategy and a personal mission for Bali, who aims to create a healthcare network as essential as the element carbon itself—ubiquitous and foundational.
Ultimately, both Eren Bali and Caesar Djavaherian exemplify the transformative power of innovation in healthcare. Their work at Carbon Health challenges outdated systems and preconceived notions about care delivery while embracing a future where technology and compassion coalesce. This is not just about building a successful company; it's about addressing one of the deepest crises within American society—healthcare accessibility.
In a world that often feels fragmented in terms of health services, the commitment by these leaders highlights a pathway that others in the sector might consider emulating. The tales that rise from a quest to rethink healthcare remind us that great challenges may indeed offer outstanding opportunities for those bold enough to pursue change. Through the lens of Bali and Djavaherian's journey, the future of healthcare appears not only bright but within reach for millions of Americans desperately seeking a provider that is both affordable and capable of meeting their needs.