Redesign Health and ARC Global Join Forces in $2 Billion Deal to Speed Up Health System Innovation

October 23, 2026 - 03:14

Redesign Health is making a major push deeper into health system-led innovation, merging with Sheba Medical Center's innovation arm ARC Global in a deal valued at $2 billion.

The combined organization brings together three groups: Redesign Health, ARC Global and AVIA. Together they work with more than 100 health systems across five continents. The companies and products built across their networks have reached over 100 million patients worldwide.

The deal signals a growing focus on pairing venture building with direct health system expertise. By combining Redesign Health's company creation engine with ARC Global's clinical and innovation ties, the merged entity aims to move new products and services into hospitals and care networks faster.

Leaders behind the merger say the scale of the combined network will allow ideas to be tested and deployed across a wide range of health systems rather than one at a time. That reach could shorten the path from concept to patient care.

The transaction also underscores a broader trend of consolidation in the health innovation space, where startups and investors are looking for closer ties to providers as they seek to prove their products work in real clinical settings.