Redesign Health, a global venture and applied technology firm focused on building next-generation healthcare companies, and ARC Global, the healthcare transformation engine founded at Sheba Medical Center, today announced they are merging. Together, the organizations will equip health systems to turn the ideas and experience of their own clinicians and operators into technology products, viable companies and lasting capabilities that can improve care worldwide, with the institutions sharing in the value they create. The combined business is being launched in partnership with world-leading health systems across five continents.
The organizations bring together the resources to carry innovation from an idea on the hospital floor through development, deployment and commercialization. ARC Global’s clinician-led innovation model and global network will be matched by Redesign Health’s AI products, embedded engineering and company-building capabilities. Health systems will gain a path to address their own clinical and operational challenges, demonstrate what works in practice and bring successful solutions to peer institutions across a global network.
Overstretched health systems globally are facing an increasingly urgent need to expand access and improve care while managing workforce constraints, rising costs and limited resources for change. While AI creates potential to tackle some of the growing pressures, implementing it in a way that’s effective, safe and sustainable requires proper infrastructure, including clinical and technological expertise, engineering, institutional support and a way to scale a development beyond a pilot. The combined business is built to close that gap, placing the engineering, AI expertise and capital to deploy at scale inside the institutions that need it.
Dr. Stephen Klasko, former CEO of Jefferson Health, who grew the system from a regional player into a nearly $10 billion academic medical enterprise, will serve as chairman of the board.
“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,” said Klasko. “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.”
Building on a model born at Sheba
Founded in 2019 at Sheba Medical Center in Israel, ranked a leading world hospital by Newsweek for eight consecutive years, ARC developed a structured approach to fostering innovation by helping clinicians, administrators and researchers identify important challenges in healthcare delivery, build solutions and bring them into clinical practice. ARC’s model also helps ease the financial strain on health systems by turning innovation into a driver of economic growth. ARC’s approach combines clinician entrepreneurship programs, collaboration with technology and industry partners and opportunities to evaluate innovations in the environments where they will be used. ARC Sheba will remain the flagship site and model for a network that has grown across over 30 health systems and a dozen countries. Redesign Health and ARC Global are launching the combined business with founding health systems, several ranked among the best in the world, to be announced in the coming months.
“The responsibility of public health institutions extends beyond patient care to the communities and economies they serve,” said Prof. Yitshak Kreiss, director general of Sheba Medical Center. “Innovation is a core principle at Sheba, going beyond improving healthcare to fostering economic growth, and helping health systems become engines of innovation and financial sustainability. We have founded ARC Global on that vision, and we are proud to see its model expand globally as it joins forces with Redesign Health, connecting clinical innovation at Sheba with a growing international network.”
The global network will connect that work across institutions, helping teams learn from peers, identify shared needs and build on what has already been tested elsewhere. Redesign Health and ARC Global will embed technologists, product leaders and AI researchers alongside each health system’s frontline teams, IT organizations and internal developers. Together, they will build and deploy products that fit the institution’s own workflows. A proprietary AI operating system, built on a structured knowledge graph of healthcare research and institutional needs, guides that work on the ground and shows the network where talent and capital will do the most good.
“ARC was built to redesign healthcare through transformation, turning innovation into new models of care and making it an economic growth engine,” said Prof. Eyal Zimlichman, founder and president of ARC Global, who joins Redesign Health as vice chairman. “Uniting with Redesign Health will enable us to expand our proven model of clinician-led innovation and together scale to address global healthcare challenges, improve care delivery, and create better health outcomes.”
Connecting global innovation with health-system execution
The combined business has also agreed to acquire AVIA, subject to final approvals. AVIA has spent more than a decade helping U.S. health systems turn digital strategy into action, and its intelligence platform is used by more than 90,000 health system leaders and staff to evaluate over 7,000 digital solutions. Together, the three organizations work with more than 100 health systems on five continents, and the companies and products built across their networks have reached more than 100 million patients worldwide.
Redesign Health will continue to invest in and build healthcare companies through its venture capital and buyout strategies, backing founders and management teams with capital, technology and healthcare expertise, and creating more opportunities for entrepreneurs and health systems to work together.
“For decades, healthcare technology has too often been built outside health systems and sold back into them,” said Hemant Taneja, CEO of General Catalyst, an investor in Redesign Health. “Redesign Health and ARC Global are advancing a different approach, building alongside the clinicians and operators who understand where change is needed. Realizing AI’s potential in healthcare requires that kind of partnership. We believe the combined company can help health systems turn their expertise into better care, greater financial resilience, and innovations that benefit patients around the world.”
“AI will do more good in healthcare than in any other industry, but realizing that potential requires building from inside healthcare itself,” said Brett Shaheen, CEO of Redesign Health and the combined company. “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. A breakthrough in one hospital becomes progress for patients everywhere, and every solution built in one institution becomes a capability for others. That is how healthcare’s capacity to improve starts to outpace the challenges it faces.”