INDIANAPOLIS — The price tag on a new IU Health hospital campus in downtown Indianapolis rose to $4.3 billion.
According to IU Health, the original cost of the hospital was put at $1.6 billion, but that has been raised to $2.31 billion.
The increases come from two areas:
- Increasing the hospital's three bed towers to 16 stories, allowing for 864 private patient beds from an earlier 672 beds.
- Rising costs of construction raises costs more than 20% from the original budget. This accounts for $2.31 billion.
The cost of support buildings, infrastructure and other expenditures added an additional $1.98 billion, up from an initial estimate of $1.08 billion. Support buildings include medical offices, parking garages and logistics spaces.
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 Interstate 65.
At the completion of the new hospital at the end of 2027, Methodist Hospital would undergo a significant renovation. Operations of the two hospitals would be consolidated. The hospital said that should lead to a savings of $50 million a year in operating costs.
To read more on the project, click here.