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INDIANAPOLISIndiana University Health is planning to expand its downtown medical campus.

The expansion will build a new hospital, combining IU Health Methodist and IU Health University Hospital.

It will stretch from 16th Street to 12th Street, and from Capital Avenue to I-65.

“The time has come to move ahead on this transformative project to revitalize our downtown facilities,” said Dennis Murphy, president, and CEO of IU Health. “It has taken us several years to imagine, analyze, and decide how best to proceed. Together with city officials, neighbors, and other partners, we are designing a campus with a destination hospital to provide state-of-the-art care for future generations of Hoosiers.”

The new hospital is expected to be completed and opened by 2026, and until then, Methodist will have significant renovations.

The new hospital will cost around $1.6 billion, and the plans for the campus also include research and education facilities for IU School of Medicine.