What You Should Know
- Healthcare company-creation platform Redesign Health and ARC Global, the healthcare transformation engine established at Israel’s Sheba Medical Center, announced a definitive merger.
- Concurrently, the combined enterprise has agreed to acquire AVIA, the leading U.S. health system digital transformation advisory network (subject to final regulatory approvals).
- The combined conglomerate unifies more than 100 health systems spanning five continents, creating an end-to-end commercial foundry designed to build, finance, validate, and scale clinical AI tools and healthcare companies directly from the hospital floor—with health systems retaining equity ownership and financial yield in the technologies they co-develop.
Executive Leadership Bench
The merged enterprise establishes a seasoned governance structure bridging academic medicine, health system administration, and venture creation:
- Dr. Stephen Klasko, former President and CEO of Jefferson Health—who orchestrated over forty mergers and acquisitions to expand Jefferson into an enterprise generating nearly $10 billion—will serve as Chairman of the Board.
- Prof. Eyal Zimlichman, Founder and President of ARC Global and Chief Transformation and Innovation Officer at Sheba Medical Center, joins the combined company as Vice Chairman.
- Brett Shaheen, Chief Executive Officer of Redesign Health, will serve as Chief Executive Officer of the consolidated enterprise.
- Prof. Yitshak Kreiss, Director General of Sheba Medical Center, will help steer the international health system network as ARC Sheba remains the global flagship clinical testing site.
Dr. Stephen Klasko framed the strategic necessity of the merger: “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. I’ve sat in the health system CEO’s chair, and good ideas were never the shortage. When the people delivering care can act on them, innovation stops being a cost to manage and instead becomes a source of growth. Our opportunity is to make that cycle strong enough that health systems control how they serve their communities for decades to come.”
Merging Clinical Origin, Engineering Muscle, and Market Distribution
The transaction stitches together three previously disconnected segments of the healthcare technology lifecycle:
ARC Global (The Clinical Origin & Validation Engine)
Founded in 2019 at Sheba Medical Center (consistently ranked among Newsweek’s top global hospitals), ARC (Accelerate, Redesign, Collaborate) operates across 12 countries, 31 health systems, and over 300 hospitals. The model has supported more than 130 startups, generating a cumulative portfolio value of $6.7 billion, $1.5 billion raised, and eight major exits (including two 2024 transactions totaling $800 million). ARC provides the bed-side testing ground where clinical problems are surfaced by frontline nurses and physicians, validated in real-world clinical workflows, and governed by medical practitioners.
Redesign Health (The Technical Engineering & Capital Foundry)
Founded in 2018, Redesign Health has launched dozens of venture-backed companies, raised more than $1.5 billion in capital, and built proprietary internal engineering and AI development infrastructure. Rather than operating merely as a fund, Redesign deploys AI researchers, full-stack software engineers, and product operators. Under the combined model, Redesign will embed technical pods directly inside partner health systems, utilizing a proprietary healthcare AI operating system and knowledge graph to turn institutional workflow fixes into enterprise-grade SaaS products and venture buyouts.
AVIA (The Enterprise Distribution Network)
Subject to final approvals, the acquisition of AVIA solves the distribution bottleneck that stalls most hospital spin-outs. AVIA’s digital advisory platform is actively utilized by more than 90,000 health system executives across the United States to evaluate and benchmark over 7,000 digital health solutions. Absorbing AVIA provides the merged organization with an immediate, pre-built enterprise buyer network, turning products proven in one hospital into turnkey software adopted across a hundred peer systems.
Brett Shaheen, CEO of Redesign Health and the combined enterprise, emphasized the collective scale: “AI will do more good in healthcare than in any other industry, but realizing that potential requires building from inside healthcare itself. Together with the health systems joining us as founding members, we are making the world’s leading institutions a collective force for creating better healthcare, connecting the knowledge inside them with the technology, talent and capital to act on it.”
