Redesign Health merges with Sheba's ARC Global, moves to buy AVIA
What's the deal? Healthcare company-creation platform Redesign Health and ARC GlobalDealroom has a profile for this one. Try Dealroom →, the transformation engine built at Israel's Sheba Medical Center, have agreed to merge. The combined company has also agreed to acquire AVIA, a US health system digital advisory network, for an undisclosed sum, pending regulatory approval.
What's the endgame? The merger unites more than 100 health systems across five continents into one platform to build, finance, test, and scale clinical AI tools and healthcare companies from inside hospitals. Health systems keep equity and financial yield in the technologies they co-develop.
The deal stitches together three stages of the healthcare technology lifecycle: clinical validation, engineering, and market distribution.
Who brings what? ARC Global, founded in 2019 at Sheba, operates across 12 countries, 31 health systems, and over 300 hospitals. It has supported more than 130 startups, with a cumulative portfolio value of $6.7 billion, $1.5 billion raised, and eight exits, including two 2024 transactions totalling $800 million.
Redesign Health, founded in 2018, has launched dozens of venture-backed companies and raised over $1.5 billion in capital. It runs its own AI development infrastructure, deploying researchers, engineers, and product operators rather than acting purely as a fund.
Who's in charge? Brett Shaheen, chief executive officer of Redesign Health, will lead the combined enterprise. Dr. Stephen Klasko, former president and CEO of Jefferson Health, becomes chairman of the board. Prof. Eyal Zimlichman, founder of ARC Global and chief transformation and innovation officer at Sheba, joins as vice chairman.
Klasko, who oversaw more than 40 mergers and acquisitions to grow Jefferson into a nearly $10 billion enterprise, framed the rationale: "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."
Prof. Yitshak Kreiss, director general of Sheba Medical Center, will help steer the international network, with ARC Sheba remaining the global flagship clinical testing site.
The signal: The combination points to a model where hospitals move from buyers of technology to co-owners of it, folding clinical validation, engineering, and distribution under one roof. If it works, the venture, vendor, and consulting layers of healthcare innovation collapse into a single commercial foundry.
Read more: hitconsultant.net
Image credit: Generated with Gemini
