Indiana University Health’s massive redevelopment of its downtown Indianapolis healthcare facilities is nearing a major turning point as construction activity ramps up. Touted as the largest ongoing construction project in the nation, the $4 billion medical campus continues progressing toward a full opening in 2027.

Spanning 2 million square feet, the state-of-the-art hospital and expanded medical campus began construction in 2022 and is reshaping a 44-acre footprint at 16th Street and Capitol Avenue. Once complete, the hospital will consolidate operations of the aging Methodist and University hospitals—an efficiency move expected to save the system $50 million annually. The buildout includes three 16-story towers, new office and clinical buildings, retail space, a medical education and research center, parking garages, and a central utility plant.

“It’s a once-in-a-lifetime project that I am extremely proud to be part of,” said Jim Mladucky, IU Health Vice President of Design and Construction. “It aligns with IU Health’s goal of helping make Indiana one of the healthiest states in the nation.”

From Vision to Reality

Although shovels hit the ground in 2022, the hospital’s journey began more than a decade ago with a far smaller vision. “At the time, the new downtown hospital project was going to be a billion dollars. That was a big deal in 2015,” said Mladucky. “That kicked it off. From there, we engaged faculty and other stakeholders, our patients, their families, and advisory committee, to get a better understanding of where the new hospital should land.”

Ultimately, officials decided to centralize operations on land IU Health already owned at 16th and Capitol—an area large enough to also accommodate the Indiana University School of Medicine, which is relocating from 10th Street. The new Medical Education and Research Building is “substantially complete” and scheduled to open to students in fall 2025, according to Mladucky.

Structural Progress and Interior Milestones

The project is in a pivotal phase. The hospital’s final concrete pour was completed in March 2025, and the building is expected to be fully enclosed by October. Inside, the campus will feature 864 inpatient beds, 50 operating rooms, and 380 outpatient rooms, along with dedicated institutes focused on cancer, cardiovascular, and neuroscience care.

The eight-story South Support Building, which will house the main hospital garage, supply chain services, and retail areas, is also slated for completion this fall—alongside the site’s central utility plant.

As of February 2025, more than 3.4 million labor hours have gone into the campus construction, including over 2.1 million hours specifically for the hospital. “Things are moving, and moving quite rapidly now. We are really getting traction,” Mladucky said. “To date, 1,700 people are on the job site daily, and the hospital has 1,400 of them. There is a lot of work being done on every single floor there. There is a lot to do, and they are doing fantastic work.”

Designing for the Future

The campus was designed with sustainability, technology adaptation, and resilience in mind. “What we know about technology is that it’s going to change. We expect technology to change how care will be delivered 10 years from now compared to how it is delivered today. Designing and building the buildings to adapt to that was critical,” Mladucky said. “We built a module that allows for an infrastructure that can change as care evolves. That way, we can do renovations quickly and keep the buildings relevant for 50-75 years.”

In addition to building with the future in mind, IU Health also took measures to clean up the brownfield site and integrate eco-friendly features like stormwater eco-parks and LEED-certified infrastructure. Although targeting silver LEED certification, Mladucky said all projects are currently on track to achieve gold.

Commitment to Inclusion and Local Investment

Mladucky highlighted the health system’s economic commitment to supplier diversity and local participation. “So far, we have invested almost $400 million in the XBE community, and we expect that to grow through the end of the project,” he said. About 85% to 90% of partners—including contractors, engineers, and architects—are based in Indiana.

Despite competition from $138 billion worth of construction activity within a 200-mile radius, Mladucky said strong local partnerships helped IU Health secure a highly qualified workforce.

“I live in Indianapolis. I grocery shop in Indianapolis. Those I meet while I am shopping or when I go to church are the people who are working on this job site. They have a vested interest in this community. They have an invested interest in the success of this campus,” he said. “That’s who I want on our side when we are building the biggest healthcare project in the country.”

Originally reported by Carla Dempsey in Building Indiana Business.