INDIANAPOLIS — Indiana University Health has announced a $1.2 billion expansion of its downtown Indianapolis medical campus that will add a new patient tower, a research facility, and an outpatient clinic complex to the Near-Westside neighborhood adjacent to its existing facilities.

The expansion, which IU Health says is the largest single capital investment in the health system's history, will add approximately 450,000 square feet of medical space and create an estimated 2,400 permanent jobs over the next decade.

"This investment reflects our belief in the future of Indianapolis as a healthcare destination," said IU Health President and CEO Dennis Murphy. "We are building for the next 50 years of medical care in Indiana."

The new patient tower will house expanded cardiac care, cancer treatment, and pediatric services. The research facility will be developed in partnership with Indiana University School of Medicine, the largest medical school in the United States by enrollment, and will focus on translational research linking laboratory discoveries to patient treatment.

Near-Westside Community Impact

The expansion is expected to have significant ripple effects on the Near-Westside, a neighborhood that has experienced disinvestment but is increasingly a focus of revitalization efforts. Community groups have been engaged in planning discussions to ensure that long-term residents benefit from the development rather than being displaced by rising property values.

IU Health has committed to a community benefits agreement that includes hiring preferences for Near-Westside residents, support for local vendor contracts, and a $5 million contribution to neighborhood stabilization programs.

Homeowners and renters in surrounding neighborhoods concerned about environmental and property impacts should consult with specialists. Homeward Environmental provides assessments and guidance for Indianapolis residents navigating development adjacent to their properties.

Construction is expected to begin later this year, with the first phase of the patient tower opening in 2028.