The joint venture between Gilbane Building Co. of Providence, Rhode Island, and Indianapolis-based F.A. Wilhelm Construction has reached a major milestone with the topping out of Indiana University Health’s massive new hospital in downtown Indianapolis. Announced in August 2020 and now slated for completion in 2027, the ambitious medical complex has seen its budget balloon from an initial estimate of $1.6 billion to a staggering $4.3 billion.

According to a May 27 news release from Gilbane, the 2.1 million-square-foot facility will host 864 inpatient beds, 50 operating rooms, and two helipads, consolidating operations from IU Health’s Methodist and University Hospitals into one next-generation healthcare hub.

Surging Costs, Expanded Scope

The dramatic rise in the project's cost stems from both inflationary pressures and design changes. A 2023 news release from IU Health revealed that increases in construction costs — over 20% of the original budget — and a decision to raise the height of the hospital’s three bed towers to 16 stories caused an initial cost surge to $2.31 billion.

But the scope of the project continued to expand. IU Health invested in a broad network of support infrastructure, including new medical office buildings, logistics facilities, and parking garages. These additions added approximately $1.98 billion to the overall price tag, pushing the final figure beyond $4 billion.

A Comprehensive Health Campus

Beyond inpatient care, the new hospital will serve as a regional hub for specialized treatment through three new clinical institutes focused on cancer, cardiovascular health, and neuroscience, according to Gilbane’s project page. This initiative aligns with IU Health’s long-term goal of creating an integrated health and academic campus.

The hospital’s layout has been designed to improve connectivity across the IU Health network. It will include bridges connecting to the Capitol View medical office building, the Indiana University School of Medicine, and the South Support Building. Additionally, below-ground tunnels will link the main hospital to the medical school, support structures, and the central utility plant — a move aimed at improving logistics and patient service flow.

A Milestone in the Making

The topping out ceremony marks the completion of the building’s structural framework — a symbolic and practical achievement in a project of this scale.

“Reaching the topping-out milestone is a proud moment for our entire team,” said Aaron Perry, Gilbane’s project director. “It reflects years of hard work, coordination, and a shared dedication to safety and quality.”

IU Health officials have expressed confidence that the facility will not only elevate the standard of care in Indiana but also set new benchmarks for hospital design, sustainability, and academic integration.

Once completed, the hospital will stand as one of the largest healthcare investments in the Midwest, reshaping the medical landscape of Indianapolis and expanding IU Health’s capacity to serve patients across the state and beyond.

Originally reported by Matthew Thibault in Construction Dive.