University-based schools with access to state funding and endowments became the standard model for medical education later on in the 1890s, with Johns Hopkins University leading the way.

In 1869, another school, also named the Indiana Medical College (IMC), was launched by Bobbs and colleagues as an outgrowth of the Indianapolis Academy of Medicine.

[4] The trustees took the proposal into consideration, and were "convinced that the conditions were unusually favorable to the consummation of a union of interests where all previous efforts had failed, and to the inauguration of a progressive educational movement of great value to the State".

On September 25, 1905, the trustees of the CCPS voted to suspend operations and to transfer the students, alumni, personal property, and funds of the college to the Purdue School of Medicine.

[4] The Purdue School of Medicine operated out of the former MCI's facilities (the Lomax Building) at 212 North Senate Avenue in Indianapolis (the northwest corner of Market Street), in the immediate vicinity of the Indiana Statehouse.

IU believed that under the legislative act that elevated Indiana College to a university on February 15, 1838, it had the sole authorization to provide state-supported instruction in medicine; but, the development of a medical school had been delayed due to a lack of sufficient funding.

[31] The rivalry was so intense that it is sometimes labeled as the instigating factor for the cancellation of athletic events between the universities from 1906 to 1908; however, newspapers from the time cite a fight that occurred at a baseball game in West Lafayette on May 31, 1906, as the cause.

[32] The building that was sold and had housed the former CCPS would eventually come under the ownership of IU supporters, who would establish a separate medical school, the State College of Physicians and Surgeons (SCPS), there in 1906.

[31] Divided over competing loyalties to IU or Purdue (the state's largest public schools and historic rivals), legislators debated for months, with neither bill being passed.

[34] The agreement additionally stipulated that the school be governed by a board of directors consisting of representatives from IU, Purdue, and the Indiana State Medical Association.

In a similar arrangement to IUSM's Bloomington and Indianapolis campuses, VUSM allowed students to complete their preclinical studies in Valparaiso before transferring to the CCM&S in Chicago.

[39] Abraham Flexner, a renowned American educator whose work helped reform many medical schools, visited IUSM in November 1909.

He noted in his later Flexner Report (1910): "The situation in the state [was], thanks to the intelligent attitude of the university, distinctly hopeful, though it will take time to work it fully.

Emerson Hall, another early medical school building, was constructed about 200 feet (61 m) northeast of Long Hospital and completed in the fall of 1919 at a cost of $257,699.

Other early buildings erected on the medical school campus in Indianapolis included the Ball Residence for Nurses, dedicated on October 7, 1928;[47] and Fesler Hall, built in 1939.

[20] In 2009, IUSM and IU Health opened Fairbanks Hall along the Indiana Central Canal, a six-story office and clinical studies building.

On October 19, 2022, IUSM broke ground to create a new, $230 million medical education and research building in Indianapolis expected to open November 2024.

[49] It will be connected via a skybridge to IU Health's new $4.3 billion flagship facility, a consolidation of University and Methodist hospitals, that itself is planned to open in 2027.

Due to the nature of this schedule, clerkship National Board of Medical Examiners shelf exams, which are normally taken at the end of a rotation, were all taken at similar times at the conclusion of the program.

Because of the intense, multi-subject studying required throughout the program, BLIC students consistently scored higher on shelf exams and on Step 2 CK.

The end of BLIC and IUSM–Bloomington's transition to a block schedule was announced in early 2022, in part because the program was very challenging to coordinate and due to higher-level school administrative pressure for each IUSM campus to be more uniform and less autonomous.

[74] In addition to the Evansville campus of IUSM, the Stone Center also houses healthcare and related programs from USI, UE, and Ivy Tech.

Originally, students undergoing rotations at Ball Memorial Hospital had a "buddy system" where they were assigned a family practice resident and rounded with them; they also had to observe an autopsy prior to class registration.

[35] These are no longer requirements for Muncie students, though a cadaver dissection is still a part of the statewide human anatomy course taught at the beginning of first year.

Students may also enjoy a Big Ten campus atmosphere that includes seminars, sports, arts, music festivals and performances, and many other cultural events.

IUSM has a partnership program with the Moi University School of Medicine in Eldoret, Kenya through AMPATH where students may complete a double rotation in their fourth year.

Dr. Paul Stark, another neuroscientist and faculty member at IUSM, led the clinical team at Eli Lilly and Company in the development of fluoxetine (Prozac), a widely prescribed antidepressant.

[79][80] In 2011, the school announced plans for an institute specializing in personalized medicine, which would pursue an individualized and genomics-based approach to treating cancer, pediatrics, and obstetrics.

As one of sixteen sites in the United States, the federally-funded center received a five-year, $2 million grant to research and treat traumatic brain injury and its impact on the lives of patients and their families.

CARE Consortium research includes the exploration of post-concussive symptoms; the performance and psychological health of student-athletes; and the analysis of data related to biomechanical, clinical, neuroimaging, neurobiological, and genetic markers of injury.