The Redesign Health ARC Global merger, announced on 22 October 2026, joins a New York venture-building company with the innovation arm of Israel’s Sheba Medical Center, and the combined company has agreed to acquire the health system advisory firm AVIA. Headlines call it a $2 billion deal, but in the reports we read the figure is a valuation of the combined company, attributed to an unnamed source, and not a disclosed price.
Key takeaways on the Redesign Health ARC Global merger
- Redesign Health and ARC Global, the innovation arm at Sheba Medical Center, signed a definitive merger announced on 22 October 2026.
- The combined company is valued at about $2 billion, according to an unnamed source cited in one report; no purchase price has been disclosed.
- The combined company has agreed to acquire AVIA, subject to final regulatory approvals; no price or closing date is given.
- Brett Shaheen, currently Redesign Health CEO, will lead the combined company; Stephen Klasko will chair the board and Eyal Zimlichman will be vice chair.
- The three organisations work with more than 100 health systems across five continents, according to the companies.
What the Redesign Health ARC Global merger means
Redesign Health, founded in 2018, builds and funds healthcare companies and says it has raised more than $1.5 billion and launched more than 60 companies. ARC Global was founded in 2019 at Sheba Medical Center and connects 31 health systems and more than 300 hospitals in 12 countries. It has supported more than 130 startups, including three unicorns, according to the companies. Redesign Health’s own site is redesignhealth.com.
The idea is to build companies from inside hospitals. The companies say the combined business will embed engineers, AI expertise and capital in partner health systems, and scale successful tools across the network. Health systems keep equity ownership in the companies they help create, which Zimlichman described as turning hospitals from cost centres into economic engines of growth. Those are company statements and we have not independently assessed the model.
Is the Redesign Health ARC Global merger really a $2 billion deal?
The $2 billion figure appears in headlines on the merger. The report we read in detail says it is the approximate valuation of the combined company, according to a source with knowledge of the deal. That is different from the sum paid, and the sources do not give an ownership split or any payment terms. A second report we read says the same and states that the AVIA price is not disclosed. We therefore describe $2 billion as a reported valuation and not as the size of a transaction.
AVIA and the Redesign Health ARC Global merger
AVIA is described as a Chicago-based digital transformation and strategic advisory firm for health systems. The companies say its platform is used by more than 90,000 health system leaders and staff to assess more than 7,000 digital solutions. The acquisition is subject to final regulatory approvals, and no price or timetable is given. If completed, it would give the combined company a sales and advisory channel into US health systems, which is our reading of the rationale, not a company statement.
The market behind the Redesign Health ARC Global merger
Acumen Research and Consulting’s report AI in Healthcare Market Size, Share, Forecast Report 2026 to 2035 values the global AI in healthcare market at USD 41.84 billion in 2025 and projects USD 1,136.90 billion by 2035, a compound annual growth rate of 39.1% over 2026 to 2035. The same report says North America held about 43% of the market in 2025 and that Asia Pacific is expected to grow fastest, at 42.5% a year.
Redesign Health says it uses a proprietary healthcare AI operating system, and chief executive Brett Shaheen said AI will do more good in healthcare than in any other industry. The Acumen figures are third-party estimates for the whole sector and say nothing about the merged company’s prospects. See also our Healthcare IT coverage.
General background: why hospital innovation studios exist
Digital health is a broad field, described on the WHO digital health page. Hospitals generate many ideas for better workflows but often lack the capital, engineering staff and commercial skills to turn them into products. Studios and foundries try to supply those, usually in exchange for equity. The model works only if the resulting tools are adopted widely, which is why partnerships with many systems matter. How well this particular model performs is not something the reports establish.
Our analysis: the Redesign Health ARC Global merger as a scale play
In our assessment, the Redesign Health ARC Global merger is a bet on scale: more hospitals to test ideas, more engineers to build them, and a US advisory channel to sell them. The risks are integration, governance across two continents and the fact that many health system technology projects stall before reaching routine use.
We note that ARC Global’s existing startups will continue to operate independently with their current investors, according to one report, so the merger does not by itself change their ownership. We make no forecast on the combined company’s valuation, revenue or listing plans.
What is not disclosed about the Redesign Health ARC Global merger
- The price or terms of the merger and the ownership split.
- The price and closing date for AVIA.
- The names of the founding health systems, which the companies say will follow in coming months.
- The source and basis of the $2 billion valuation.
- Financial results for either company.
Risks and caveats of the Redesign Health ARC Global merger
This article relies on company announcements as reported by trade publications, and the valuation comes from an unnamed source. The AVIA acquisition requires approval. Acumen’s figures are third-party estimates. This is news reporting and not investment advice.
What to watch next after the Redesign Health ARC Global merger
- Regulatory clearance and closing of the AVIA acquisition.
- The list of founding health system partners.
- First products or companies launched under the combined brand.
- Any disclosure of ownership or financial terms.
FAQ
What is the Redesign Health ARC Global merger?
A merger of Redesign Health and Sheba Medical Center’s ARC Global, announced on 22 October 2026, with an agreement to acquire AVIA.
How much is the deal worth?
The combined company is valued at about $2 billion, according to an unnamed source; the deal price is not disclosed.
Who will lead the combined company?
Brett Shaheen as chief executive, with Stephen Klasko as board chair and Eyal Zimlichman as vice chair.
How we reported this: we relied on company announcements as reported by trade publications and on the Acumen Research and Consulting report cited above, and attributed every figure. Last updated 24 October 2026. This is news reporting and not advice.