New Healthcare Model Integrates Tech Inside Hospitals
Hospital operators will see a shift in innovation strategy as a newly merged $2 billion company embeds engineers into health systems.
Updated on Oct. 22, 2026 in Healthcare
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Should hospitals develop their own technology solutions rather than relying on external commercial vendors?
Redesign Health and ARC Global have merged to form a new enterprise valued at approximately $2 billion, concurrently acquiring the digital health consultancy AVIA. The combined organization intends to integrate AI technologists directly into over 100 health systems to build and scale proprietary healthcare technology.
Why it matters
The merger aims to address persistent challenges in healthcare, including rising operational costs and workforce shortages, by shifting the development of innovation from external startups to inside the health systems themselves.
The combined company commands a $2 billion valuation, leveraging a network spanning 31 health systems and over 300 hospitals across 12 countries. This infrastructure supports a portfolio that reaches 100 million patients, building on AVIA's legacy of evaluating 7,000 digital solutions.
The players
Brett Shaheen
The current CEO of the combined organization responsible for managing the merged health innovation strategy.
Stephen Klasko
The chairman of the board for the newly formed entity with a background in leading large-scale medical enterprises.
Eyal Zimlichman
The vice chairman of the new company who serves as a clinical leader within the Sheba Medical Center flagship network.
AVIA
A digital health intelligence platform that provides market research and digital solution evaluations for hospital operators.
The details
By embedding engineers and AI specialists within hospital workflows, the firm aims to capture clinical insights that can be converted into standalone technology companies. The business model provides the necessary infrastructure and capital to scale these internally developed ideas, bypassing the traditional external startup development cycle. This approach prioritizes specific institutional needs like workflow efficiency and patient outcome improvements over generalized market solutions.
Timeline
2018: Redesign Health launched.
2019: ARC Global launched.
2025: Redesign Health expanded with hubs in Saudi Arabia and India.
October 2026: The merger of Redesign Health and ARC Global was announced.
Coming months: The company will name its initial founding health systems.
Market Landscape
This move marks a departure from the historical model of external healthcare startup incubation by moving the development process inside the walls of care institutions. It shifts competition toward companies that can integrate AI engineers directly into hospital workflows to solve specific operational constraints.
Operators at health systems should monitor how this new entity's integration model impacts the acquisition and implementation of third-party digital solutions. In the near term, consider whether your current procurement strategy for AI tools accounts for increased competition from in-house developed technologies.
The takeaway
The consolidation of these platforms indicates that the future of healthcare technology may rely on institutions becoming developers rather than just customers. Health system operators should track which of their peers join this cohort, as these early partners will likely shape future standards for clinical AI integration.
What happens next
The company expects to publicly name its founding health systems in the coming months, which will signal the operational rollout of its new institutional development model.
Further reading
For more on evolving digital innovation trends, see our Healthcare section.
Live Poll
Should hospitals develop their own technology solutions rather than relying on external commercial vendors?
