IU Health consolidation would merge two downtown hospitals

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INDIANAPOLIS, Ind (June 20, 2014)– The Indianapolis Business Journal reports that Indiana University Health wants to merge two of its big downtown hospitals, University and Methodist, into one location.

How soon the two hospitals would merge is uncertain. IU Health is currently consolidating the emergency rooms of the two hospitals. On July 1, the University Hospital ER will close and send its patients to the Methodist ER.

“You can only do so much by working around the margins. It really requires more dramatic action,” said Mark Grube, a hospital consultant at Illinois-based Kaufman Hall & Associates. If a hospital system consolidates two hospitals into one, he added, “The savings can be absolutely enormous—tens if not hundreds of millions of dollars over time.”

A working team of more than 20 IU Health personnel held its first meeting Thursday to discuss consolidating the hospitals. That team aims to make recommendations in the fall.