Redesign Health and ARC Global Merge in $2 Billion Deal to Advance Health System Innovation

Redesign Health and ARC Global, the innovation arm of Sheba Medical Center, have announced a merger valued at approximately $2 billion. The combined enterprise aims to establish an end-to-end platform that enables health systems to transform ideas from clinicians and operators into technology products and standalone companies. Executives stated that these innovations will be scaled across a global network.

Leadership and Strategic Acquisitions

Brett Shaheen will serve as CEO of the combined company. Stephen Klasko, M.D., former CEO of Jefferson Health, will act as chairperson of the board, while Professor Eyal Zimlichman, M.D., founder and president of ARC Global, will assume the role of vice chair. In addition to the merger, Redesign Health and ARC Global have agreed to acquire AVIA, a strategic advisory and intelligence firm that assists health systems in selecting, validating, and implementing digital health technologies, pending final approvals.

Addressing Industry Challenges Through Embedded Innovation

Company executives highlighted that health systems face severe pressures from rising operational costs, workforce shortages, and increasing demand for care, yet frequently struggle to scale artificial intelligence beyond preliminary pilots. The newly combined organization intends to bridge this gap by embedding engineering expertise, artificial intelligence capabilities, and capital directly within healthcare institutions.

• Combining ARC Global’s clinician-led innovation model with Redesign Health’s engineering and AI infrastructure.
• Integrating AVIA’s intelligence platform, which is utilized by more than 90,000 healthcare leaders and staff.
• Enabling frontline workers to participate directly in developing and testing workflow solutions.

According to Aaron Szanto, head of technology at Redesign Health, the strategy seeks to shift the locus of healthcare technology development inside the institutions delivering care. By embedding engineers directly with frontline operators, hospitals hope to address specific workflow bottlenecks—such as avoidable discharge delays—that standard vendor products or overburdened internal IT departments may not immediately resolve.

Global Network and Economic Impact

Collectively, the participating organizations report existing relationships with more than 100 health systems across five continents, with technologies touching over 100 million patients. Executives noted that successful solutions developed within one facility can be adapted and scaled across the wider network. Furthermore, under the ARC model, participating healthcare systems retain significant equity roles in the resulting companies, potentially turning traditional hospital cost centers into engines of economic growth for their surrounding communities.