Designing Kitchens and Bathrooms - Bath remodel cement block walls

I'm planning to remodel the 2nd bathroom in my house, the layout of the 20' x 9' area appears to have been an afterthought, about half is a laundry room and a strange hallway to know where cut into the bath area.
I want to knock the wall in between down and have two more functional rooms...the dilemma is the inside walls are all concrete block, with brick on the outside walls. Anyone have any advise...I'd like to fur them out, insulate and rewire?

I ran into a similar situation in a house I used to own. Why it was done the way it was, I have no clue. There was an interior concrete block wall in the basement which divided the laundry and storage area from the rest. It was obviously put in when the basement was built since its bottom course was in the concrete floor. However, it was not a load-bearing wall - it ran parallel to the floor joists, not touching any of them, and butted against the basement walls at both ends. I'm sure a framed wall would've been a lot easier and cheaper.

You might want to look more closely and what you have. Your situation may be similar. It was messy work, but I knocked out a good section of the wall to open up the space.