The announcement was issued today by IU and Clarian Health Partners, where Stephan is senior vice president of community relations and corporate communications.
Stephan will be responsible for leading economic development initiatives of both IU and Clarian, particularly in health and life sciences. Clarian and IU operate Methodist, Indiana University and Riley hospitals.
He will report to IU President Michael McRobbie and be based in Indianapolis.
"IU has to play a greater role in the economic development of the state and Bill Stephan knows better than just about anyone what Indiana needs to be doing to attract more investment and jobs," McRobbie said in a statement.