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IU Health planning new $1.6 billion hospital in downtown Indianapolis

Construction of the new hospital would happen over the next six years.

INDIANAPOLIS — IU Health is planning to build a new $1.6 billion hospital in downtown Indianapolis. 

The 44-acre medical campus expansion would be located just south of the existing IU Health Methodist Hospital campus. It would extend from 16th Street to 12th Street and from Capitol Avenue west to I-65.

Construction of the new hospital would happen over the next six years. At the completion of the new hospital in 2026, Methodist Hospital would undergo a significant renovation. Operations of the two hospitals would be consolidated.

“The time has come to move ahead on this transformative project to revitalize our downtown facilities,” said Dennis Murphy, president and CEO of IU Health. “It has taken us several years to imagine, analyze, and decide how best to proceed. Together with city officials, neighbors and other partners, we are designing a campus with a destination hospital to provide state-of-the-art care for future generations of Hoosiers.”

The new campus would be the largest investment by IU Health towards its mission of making Indiana one of the healthiest states.

Details of the planned hospital:

The new hospital is estimated to cost $1.6 billion. Also planned on the campus are research and education facilities for IU School of Medicine to house its physicians, faculty, students and scientists.

  • Distinctive building of three glass-fronted towers of about 10 stories with a rooftop helipad and enclosed walkways to nearby buildings and a parking garage. 
  • An energy-efficient, LEED-certified design will ensure a healthy and comfortable indoor environment, while the site will be sculpted as a green campus to manage pollution and limit runoff into the White River.
  • The multi-tower design can flex to hold up to 576 private patient beds and expansive outpatient care areas. 
  • Once renovated, parts of the Methodist complex will be connected to the new hospital via walkway and provide additional beds and exam rooms and other clinical space.

“The coronavirus pandemic has critically influenced the design of the new hospital and campus, reinforcing the need for a flexible design with acuity-adaptable spaces, including sufficient intensive care units to handle surges of ill or infectious patients,” said Dr. Ryan Nagy, president of IU Health Methodist and University hospitals. 

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