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Clarian moves forward with downtown expansion

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Year In Review

Clarian Health, after the 2008 financial meltdown forced it to halt its aggressive building campaign, put the hard hats back to work in 2010.

The Indianapolis-based hospital system renovated its neurosurgery suites at Methodist Hospital and laid plans for a $192 million neurosciences hub across the street from the massive hospital.

The project, which would also centralize administrative workers near Methodist, would employ roughly 1,200 workers. It is slated to open in 2013.

An even bigger project at Methodist lies on the horizon: a tower with as many as 250 beds, so Methodist would have all private rooms. The project, which would cost $375 million to $500 million, would also include additional parking, office space and improvements to its utilities and streetscape. That project would not be finished until 2015.

The expansion at Methodist is part of a strategy by Clarian to draw lucrative patients from outside Indiana’s borders. Currently, only about 5 percent of all Clarian patients come from outside Indiana.

To that same end, Clarian will change its name in 2011 to Indiana University Health. IU, through its medical school, formed Clarian in 1997 as a joint venture with Methodist Hospital.

“I feel much better” than a year ago, Marvin Pember, Clarian’s chief financial officer, said in April. “We had good growth in our core business and patients across central Indiana.”

Clarian’s investments in hedge funds and credit default swaps walloped its investment portfolio in 2008, sending it plunging $633 million. At the same time, hospitals worried that the recession and high unemployment would reduce their patient volumes.

In response, Clarian halted construction on the $475 million Simon Family Tower at its Riley Hospital for Children downtown and on its 44-bed, $190 million Saxony Medical Center in Fishers.

But both projects have resumed. As the credit markets thawed, Clarian’s investments recovered in value, and the recession worries proved unfounded. Clarian’s patient volume grew 4 percent last year and another 6 percent through the first nine months of this year. The company generated an operating gain last year of $174 million.•
 

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  1. How much you wanna bet, that 70% of the jobs created there (after construction) are minimum wage? And Harvey is correct, the vast majority of residents in this project will drive to their jobs, and to think otherwise, is like Harvey says, a pipe dream. Someone working at a restaurant or retail store will not be able to afford living there. What ever happened to people who wanted to build buildings, paying for it themselves? Not a fan of these tax deals.

  2. Uh, no GeorgeP. The project is supposed to bring on 1,000 jobs and those people along with the people that will be living in the new residential will be driving to their jobs. The walkable stuff is a pipe dream. Besides, walkable is defined as having all daily necessities within 1/2 mile. That's not the case here. Never will be.

  3. Brad is on to something there. The merger of the Formula E and IndyCar Series would give IndyCar access to International markets and Formula E access the Indianapolis 500, not to mention some other events in the USA. Maybe after 2016 but before the new Dallara is rolled out for 2018. This give IndyCar two more seasons to run the DW12 and Formula E to get charged up, pun intended. Then shock the racing world, pun intended, but making the 101st Indianapolis 500 a stellar, groundbreaking event: The first all-electric Indy 500, and use that platform to promote the future of the sport.

  4. No, HarveyF, the exact opposite. Greater density and closeness to retail and everyday necessities reduces traffic. When one has to drive miles for necessities, all those cars are on the roads for many miles. When reasonable density is built, low rise in this case, in the middle of a thriving retail area, one has to drive far less, actually reducing the number of cars on the road.

  5. The Indy Star announced today the appointment of a new Beverage Reporter! So instead of insightful reports on Indy pro sports and Indiana college teams, you now get to read stories about the 432nd new brewery open or some obscure Hoosier winery winning a county fair blue ribbon. Yep, that's the coverage we Star readers crave. Not.

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