Redesign Health merges with Sheba's ARC Global in tens-of-millions deal
What's the deal? Redesign Health, a global venture and applied technology firm, is merging with ARC GlobalDealroom has a profile for this one. Try Dealroom →, the healthcare transformation engine founded at Israel's Sheba Medical Center. The companies announced the deal on October 22, 2026; terms were undisclosed, though it was reported as worth tens of millions of dollars.
What changes: Redesign gains control of ARC Global's international hospital-innovation network and the rights to open more centers. Sheba keeps its stakes in portfolio companies and continues running its own ARC center, which remains the model's flagship site.
What each side brings: ARC's clinician-led model spans a dozen countries and more than 30 health systems, helping doctors and administrators turn frontline problems into products. Redesign adds AI products, embedded engineering, and company-building capabilities.
Why now? Health systems face rising costs, workforce shortages, and pressure to expand access. AI could ease some of that strain, but deploying it safely requires engineering, clinical expertise, and a way to scale pilots — the gap the combined business says it is built to close.
The leadership: Dr. Stephen Klasko, former CEO of Jefferson Health, which he grew into a nearly $10 billion academic medical enterprise, becomes chairman. Prof. Eyal Zimlichman, ARC Global's founder and president, joins Redesign Health as vice chairman.
"Healthcare has consultants who diagnose, vendors who sell and investors who fund, but there has never been one player inside the hospital that can pinpoint the problem, build the solution and share in the result," Klasko said. The firms are also acquiring AVIA, bringing together more than 100 health systems across five continents.
What could go wrong? The model depends on whether the combined operation can turn its network and clinical access into companies that hospitals adopt — and that can grow beyond their first partners.
The signal: The merger extends Redesign's hospital-embedded strategy, seen in its Cedars-Sinai partnership, where the health system helps pilot and validate new startups. The deal gives Redesign a faster route to scale a model that turns problems identified inside hospitals into investable companies.
Read more: prnewswire.com
Image credit: Generated with Gemini
