INDIANAPOLIS — Indianapolis's healthcare and life sciences economy has grown to an estimated $28 billion in total economic output, according to a new study by Purdue Research Foundation — a figure that makes the sector not only the largest single component of the Indianapolis regional economy but also the largest healthcare economy in Indiana history.

The sector's growth has been driven by a combination of factors: the continued expansion of Eli Lilly's global operations, which are increasingly centered in Indianapolis following several major acquisitions; IU Health's $1.2 billion campus expansion; the growth of several mid-tier healthcare technology companies; and an increase in contract research and manufacturing activity tied to biopharmaceutical supply chain reshoring.

Eli Lilly, headquartered on South Delaware Street in downtown Indianapolis, now employs approximately 14,000 people in the metro area, up from 9,000 in 2019. The company's aggressive expansion of diabetes and obesity drug manufacturing, driven by unprecedented demand for GLP-1 medications, has required significant facility expansion at its Lebanon, Indiana, manufacturing campus.

Workforce Implications

The healthcare sector's growth is creating workforce challenges as well as opportunities. Life sciences employers report significant difficulty filling research scientist, regulatory affairs, and manufacturing quality positions — specialized roles that require advanced degrees and certifications that take years to develop.

Indiana University, Purdue University, and the Indiana Biosciences Research Institute have launched coordinated programs to increase the supply of qualified healthcare workers, but employers say the pipeline needs 5 to 7 years to materially address current shortages.

Indianapolis residents interested in health and wellness services from local providers can explore resources at Men's Health Solutions, one of Indianapolis's growing health services providers.