Two major health innovation firms are teaming up to reshape how hospitals develop technology. Redesign Health and ARC Global are merging in a deal valued at ~$2 billion, with plans to embed AI engineers directly inside health systems. The goal: help frontline clinicians turn real-world problems into scalable tech solutions — without waiting on outside vendors.
Two major health innovation firms are teaming up to reshape how hospitals develop technology. Redesign Health and ARC Global — the innovation arm of Israel's Sheba Medical Center — are merging in a deal valued at approximately $2 billion. The combined company will also acquire AVIA, a digital health advisory firm, creating what the organizations describe as an end-to-end platform for health system-led innovation. Brett Shaheen will serve as CEO, with former Jefferson Health CEO Dr. Stephen Klasko as board chairman.
The big idea: bring innovation inside the hospital, not sell it from the outside. The merged entity plans to embed AI engineers and technologists directly within health systems, helping clinicians and operators turn frontline problems — like avoidable discharge delays — into working technology products. Successful solutions can then be licensed, spun into new companies, or scaled across a global network of over 100 health systems.
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Why it matters: Health systems are grappling with rising costs and workforce shortages, yet often lack the infrastructure to scale AI beyond pilot programs. This merger aims to close that gap by making hospitals active builders — and financial beneficiaries — of the technologies they use.
