Last I checked, the TY programs in Indiana were:
1. Ball Memorial Hospital, Muncie, IN (I think, from your post, you might prefer this one)
2. Methodist Hospital in Indianapolis
3. St. Vincent's Hospital in Indianapolis
All are good programs. All are very competitive (I interviewed at all, ranked them all, but didn't match into any of them). There isn't anything that I know of closer to South Bend. St. V's also has a prelim medicine year. Indiana University's prelim medicine year isn't one you can apply to (they reserve spots for residents matching into advanced positions at IU). Hope this helps.