Indiana University Health is moving forward with plans to create a sprawling 44-acre medical campus in downtown Indianapolis.

The $4.3 billion project, which received final board approval in December, will consolidate adult services at IU Health Methodist and IU Health University into one site, establishing an anchor for a downtown healthcare district. Plans call for 864 patient beds across three, 16-story towers, with the option to add a fourth tower. The project is scheduled to open in late 2027.

The nonprofit system estimates that consolidating services into one location will save $50,000 annually. The medical campus also will include an outpatient center, medical education building, faculty offices and support buildings, according to financial documents filed Wednesday. 

IU Health said it seeks to issue $693.32 million in bonds to help fund the project, refinance debt and cover completed expansions at IU Health Bloomington and Riley Children’s Hospital. Proceeds will also go toward a $300 million expansion project underway at its Fishers hospital. 

IU Health is Indiana’s largest healthcare system, operating 16 hospitals and more than 300 physician offices, surgical centers and other care facilities. The system reported first-quarter net income of $311.7 million, compared with a $358.5 million loss a year earlier. In 2022, it lost $715.1 million.

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