Honestly, if you’ve lived in Indianapolis long enough, you’ve probably driven past those imposing brick buildings on Cold Spring Road and wondered what exactly was going on behind the gates. Larue Carter Memorial Hospital wasn't just another medical center. It was a place of heavy history, a massive psychiatric facility that sat like a quiet island between the White River and Marian University for decades. For many, it was a mystery. For others, it was a lifeline—or a nightmare.
Basically, the hospital is gone now. It officially closed its doors in 2020, but the story didn't end with a "closed" sign. Right now, in early 2026, those grounds are being transformed into something entirely different. But to understand why people still talk about "Larue Carter" with a mix of reverence and discomfort, you have to look at what it actually was: Indiana’s primary battleground for the most complex mental health cases in the state.
The Man Behind the Name: Dr. Larue Depew Carter
We should start with the name itself. It’s not just a random label. Dr. Larue Depew Carter was a huge deal in the world of neuropsychiatry. Born in Westfield, Indiana, back in the late 1800s, he eventually became a professor of neurology and a massive advocate for humane mental health treatment.
Before Carter came along, Indiana's approach to mental illness was, well, pretty grim. Think of the old Central State Hospital—a place that eventually became a symbol of everything wrong with "insane asylums." Dr. Carter wanted something different. He pushed for a facility that focused on intensive treatment and research rather than just locking people away.
The state dedicated the hospital to him in 1949, though the actual facility we remember didn't start its life on Cold Spring Road. It actually began its journey in 1952 at a downtown location before moving to the sprawling 20-plus-acre campus that most of us recognize today.
Two Lives: The Shift to Cold Spring Road
It's kinda confusing because there were actually two "Larue Carters."
- The Original Site: The first version of Larue Carter Memorial Hospital opened in 1952 near what is now the Eskenazi Hospital campus. It was a pioneer in pediatric psychiatric care, which was incredibly rare at the time.
- The Second Site: In 1996, the hospital moved into the former Veterans Administration (VA) hospital at 2601 Cold Spring Road.
This second location is the one that sticks in people's minds. It was a massive complex built in the 1930s with that classic, slightly intimidating Colonial Revival architecture. Moving into an old VA hospital meant the state didn't have to build from scratch, but it also meant the staff was always fighting against a building that wasn't exactly designed for modern psychiatric needs.
Why the Hospital Was Unique (And Controversial)
Larue Carter wasn't a "run-of-the-mill" rehab center. It was a state psychiatric hospital. This meant they took the patients that private hospitals often couldn't or wouldn't handle. We're talking about children with severe developmental disorders, adults with treatment-resistant schizophrenia, and individuals coming out of the prison system who needed long-term stabilization.
Because it was a state-run facility, the reviews were... mixed. You can find former patients who say the hospital saved their lives. You can also find heartbreaking accounts of people who felt the facility was cold, deteriorating, and understaffed. By the 2010s, the "deteriorating" part wasn't just an opinion—it was a fact. The elevators were constantly breaking down, the heating was spotty, and the "campus feel" started to feel more like an "abandonment feel."
The Final Transition: Why Did It Close?
The state eventually realized that trying to fix a 1930s veteran's hospital was like trying to patch a sinking ship with duct tape. In 2015, then-Governor Mike Pence announced a plan to replace the aging Larue Carter Memorial Hospital with something brand new.
That "something" is the Neuro-Diagnostic Institute (NDI) on the east side of Indy.
The NDI was designed to be the exact opposite of Larue Carter. Where Larue was dark and cramped, NDI is full of natural light and high-tech security. The transition was finally completed in March 2019. Every single patient was moved from the old Cold Spring Road site to the new facility next to Community Hospital East.
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By 2020, the Larue Carter Memorial Hospital was officially empty.
The 2026 Reality: From Wards to Classrooms
So, what’s happening there right now? If you drive by today, you’ll see construction crews everywhere.
Marian University made a huge move in 2024 and 2025. They acquired the 22-acre site from the state and launched a massive $137 million project called the Riverside Education Innovation District. It’s a total pivot from the site's dark past.
Instead of psychiatric wards, the plan involves:
- Repurposing Historic Buildings: They aren't tearing everything down. The main historic VA hospital building is being saved and turned into an educational hub.
- Community Hubs: A focus on literacy and neighborhood resources for the Near Northwest Area.
- New Partnerships: Bringing in schools and companies to create a "lifelong learning" district.
It’s a bit surreal to think that the same rooms where doctors once studied the deepest mysteries of the human brain will soon be filled with college students and local kids learning to read. It's progress, sure. But for those who remember the old Larue Carter, there's always going to be a bit of "ghostly" energy about the place.
Practical Steps for Those Seeking Records or History
If you are looking for information related to the old hospital, don't just show up at the Cold Spring Road site. You won't find anything but construction workers.
- For Patient Records: Since the hospital was a state facility, all records from Larue Carter Memorial Hospital are now managed by the Indiana Archives and Records Administration (IARA). If you or a family member were a patient, that's where you start the formal request process.
- For Current Psychiatric Care: If you’re looking for the services Larue Carter used to provide, you need to contact the Neuro-Diagnostic Institute (NDI). They handle the acute psychiatric admissions that the state previously funneled through the old hospital.
- Visiting the Grounds: Currently, the site is a construction zone. While the Riverside Education Innovation District is meant to be a community asset, the buildings themselves are restricted. You can't just wander in for "urban exploration" anymore—patrols are active, and it's a liability.
The legacy of Larue Carter Memorial Hospital is complicated. It represents a 70-year era of Indiana's mental health history that was often underfunded and misunderstood. Moving the services to the NDI and turning the old campus into an educational district is probably the best outcome we could have hoped for. It’s a way to keep the history alive without letting the buildings rot.
If you want to keep tabs on the renovation progress, the Marian University website is the most reliable source for updates on the Riverside Education Innovation District as they move toward their full opening dates.
Next Steps:
- Check the Indiana Archives (IARA): If you are researching family history or need medical records from the 1950s through 2020.
- Visit the Neuro-Diagnostic Institute Site: To understand the modern standard of state-level mental healthcare in Indiana.
- Monitor Marian University Announcements: To see when public-facing parts of the new Riverside district will be open for community use.