The Redesign Health ARC Global merger is built on one idea: that the best healthcare technology ideas come from clinicians, and that hospitals should own part of what their staff help create. Announced on 22 October 2026, the merger joins Redesign Health with ARC Global, the innovation arm at Israel’s Sheba Medical Center, and the combined company plans to acquire the advisory firm AVIA.
Key takeaways: the Redesign Health ARC Global merger and hospital startups
- ARC Global was founded in 2019 at Sheba Medical Center and works with 31 health systems and more than 300 hospitals in 12 countries, according to the companies.
- ARC has supported more than 130 startups, including three unicorns, which will continue to operate independently with their existing investors, according to one report.
- Redesign Health says it has launched more than 60 companies and raised more than $1.5 billion.
- Health systems keep equity in companies they help establish.
- The combined company is valued at about $2 billion, according to an unnamed source.
How the Redesign Health ARC Global merger would turn ideas into companies
The companies describe a pipeline that starts with a clinical problem identified by hospital staff. Engineers, AI specialists and capital are placed inside partner health systems, a solution is built and tested, and the successful ones are scaled across the network or spun out as independent companies. Redesign Health’s venture and buyout strategies continue alongside this. Sheba remains the flagship clinical testing site for ARC. Redesign Health’s website is redesignhealth.com.
The key difference from a typical venture fund, according to the companies, is the role of the hospital. Eyal Zimlichman, ARC’s founder, said that equity ownership is inherent to the vision of turning hospitals from cost centres to economic engines of growth. We can explain the model, but the sources give no financial results that show how well it works.
Timeline of the Redesign Health ARC Global merger
- 2018: Redesign Health is founded, according to the company.
- 2019: ARC Global is founded at Sheba Medical Center.
- 2024: ARC records two exits totalling $800 million, according to one report.
- 22 October 2026: the merger and the planned AVIA acquisition are announced.
- Coming months: founding health system partners are to be named.
The AVIA acquisition remains subject to final regulatory approvals, and no closing date has been given. The $800 million figure for 2024 exits comes from one trade report of the companies’ own description, and we have not seen the transactions.
The numbers behind the Redesign Health ARC Global merger
- More than 100 health systems on five continents across the three organisations.
- More than 100 million patients reached by products from the networks, according to the companies.
- AVIA’s platform is used by more than 90,000 health system leaders and staff to evaluate more than 7,000 digital solutions.
- $1.5 billion raised by Redesign Health, and $1.5 billion by ARC, according to one report.
These are figures from the companies, and we have not verified them. A valuation of about $2 billion for the combined company is reported from an unnamed source and is not a purchase price.
Digital health market context for the Redesign Health ARC Global merger
Acumen Research and Consulting’s report Digital Health Market Size, Share and Growth Report estimates the global digital health market at USD 217 billion in 2022, rising to USD 1,592 billion by 2032, a compound annual growth rate of 25.3% from 2023 to 2032. It says North America occupied around USD 93.4 billion in 2022 and that Asia Pacific is projected to grow fastest, at more than 26% a year.
Digital health is a broader category than the AI tools Redesign builds, so the figures give context and not a forecast for the merged company. See our Healthcare IT coverage for related stories.
General background: how venture studios work
Digital health is described on the WHO digital health page. A venture studio creates companies in-house and supplies founders, capital and operating support, usually for equity. A hospital-linked studio adds access to clinicians, patients and real workflows. The challenge is moving from a successful pilot in one hospital to a product that other systems will buy. That step is where many digital health ideas stall, and we have not seen data on how the combined company plans to address it beyond its description of a network approach.
Our analysis: what hospitals and founders should ask
In our assessment, the Redesign Health ARC Global merger gives hospital leaders a clear offer: your problems, our engineers, shared ownership. Before signing up, systems will want to know how equity is divided, who controls the intellectual property and how conflicts between a hospital’s buying decisions and its ownership interests are handled. Those questions are ours, not drawn from the sources.
Founders will want to know whether independence is preserved, as one report says it will be for ARC’s existing startups. We make no prediction about outcomes.
What is not disclosed about the Redesign Health ARC Global merger
- The deal terms and ownership split.
- The AVIA price and closing date.
- Which health systems will be founding partners.
- The basis for the $2 billion valuation.
- Revenue or profit figures for the companies.
Risks and caveats of the Redesign Health ARC Global merger
The reports are based on company statements and one unnamed source on valuation. The AVIA acquisition needs regulatory approval. Digital health forecasts are estimates. This article is news reporting and not investment advice.
What to watch next after the Redesign Health ARC Global merger
- Closing of the AVIA acquisition.
- Announcement of founding health system partners.
- The first products to come from the combined structure.
- Any statement on ownership of hospital-created technology.
FAQ
What does the Redesign Health ARC Global merger do?
It combines a venture-building company with a hospital-based innovation network, to create companies from clinical ideas.
Do hospitals own equity?
Yes, according to the companies, health systems keep equity in the companies they help establish.
What happens to ARC’s startups?
One report says they will continue to operate independently with their existing investors.
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.
