Redesign Health Merges With ARC Global In $2 Billion Deal
Redesign Health and ARC Global merge to accelerate health system innovation, creating a $2 billion company. The deal aims to help health systems develop and scale technology products.
Original reporting · fiercehealthcare.com
Original: “Redesign Health, ARC Global merge in $2B deal to accelerate health system innovation”
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Key points from Fierce Healthcare’s report
- Redesign Health and ARC Global have merged to create a $2 billion company focused on health system-led innovation.
- The combined company will create a platform to turn ideas from clinicians and operators into technology products and scale them globally.
- The company will work with over 100 health systems across five continents, with products and companies developed through their networks reaching more than 100 million patients.
- The merger aims to address the challenges faced by health systems, including rising costs, workforce shortages, and growing demand for care.
- The combined company's strategy focuses on shifting healthcare innovation within health systems, rather than developing technology externally.
Redesign Health is expanding its presence in health system-led innovation through a merger with ARC Global, the innovation arm of Sheba Medical Center. The combined company will focus on creating a platform to turn ideas from clinicians and operators into technology products. This platform will enable health systems to scale these products globally.
The merger, announced on October 23, values the combined company at approximately $2 billion, according to a source with knowledge of the deal. The company will be led by Brett Shaheen as CEO, with Stephen Klasko, M.D. serving as chairperson of the board. Professor Eyal Zimlichman, M.D. will join Redesign Health as vice chair.
The combined business will launch with founding health systems, which will play a crucial role in shaping the company's long-term activities. These health systems will be named in the coming months. The company's objective is to be 'for healthcare by healthcare', aligning with the needs of the healthcare industry.
Redesign Health and ARC Global have also agreed to acquire AVIA, a strategic advisory and intelligence firm. This acquisition will add to the company's capabilities in digital health technologies. The combined organization works with over 100 health systems across five continents, with products and companies developed through their networks reaching more than 100 million patients.
ARC Global contributes a clinician-led innovation model and a network of 31 health systems and over 300 hospitals across 12 countries. Redesign Health brings its company-building infrastructure, capital, engineering, and AI capabilities. The acquisition of AVIA adds digital transformation expertise and an intelligence platform used by health system leaders and staff.
The merger aims to address the challenges faced by health systems, including rising costs, workforce shortages, and growing demand for care. The company plans to embed engineering and AI expertise directly within health systems to develop and scale solutions safely and effectively. This approach will help health systems overcome the infrastructure and resource gaps that hinder the adoption of AI.
The combined company's strategy focuses on shifting healthcare innovation within health systems, rather than developing technology externally. This approach will enable health systems to turn frontline problems into working technology solutions. The company will work with hospital IT teams to integrate and test these tools, ensuring seamless adoption.
The merger is expected to have a significant impact on the healthcare industry, which is rapidly adopting AI solutions. Health systems will play a critical role in developing healthcare AI, and the combined company is well-positioned to support this effort. The company's approach will also enable health systems to benefit from the financial value of AI solutions. This article is based on reporting by Fierce Healthcare.
Questions and answers
What is the value of the combined company?
The combined company is valued at approximately $2 billion.
Who will lead the combined company?
Brett Shaheen will lead the combined company as CEO, with Stephen Klasko, M.D. serving as chairperson of the board.
What is the objective of the combined company?
The company's objective is to be 'for healthcare by healthcare', aligning with the needs of the healthcare industry.
