New for-profit medical schools springing up across U.S.

BOISE, Idaho — For-profit medical schools are starting to pop up around the country, promising to create new family doctors for underserved rural regions.

Rural states like Idaho need more general practitioners, with the baby boom generation aging and expanded insurance coverage under the Affordable Care Act making health care more accessible. But critics of the new schools question whether companies can properly train the nation’s next crop of doctors.

“On face value, it looks like a pretty good deal” because for-profit schools promise to bring benefits without relying on taxpayer dollars, said Dr. Ted Epperly, who runs a family practice residency program in Boise, where a new for-profit school plans to start accepting students in 2018. “But it’s a little bit like Wal-Mart moving into a small community with mom-and-pop shops — it damages the existing workforce producers.”

Proponents contend challenges the new schools face are surmountable, and any stigma about for-profit medical training is born of fear, not fact. Dr. Robert Hasty, dean of the newly created Idaho College of Osteopathic Medicine, notes for-profit hospitals also were once stigmatized but now make up about a quarter of all U.S. hospitals.

“We have such a need for doctors, and if we have to make this investment, it’s worthwhile,” Hasty said.

Thirty-one new medical schools opened in the country between 2002 and 2014, according to an article in the New England Journal of Medicine. Most were nonprofit or public.

For decades, for-profit medical schools were relegated to foreign shores, with U.S.-based companies like DeVry launching medical schools in the Caribbean. But that changed in 2007 when Rocky Vista University College of Osteopathic Medicine opened in Parker, Colorado.

Several for-profit medical schools have opened in the years since, including California Northstate University School of Medicine and the Burrell College of Osteopathic Medicine in New Mexico. Rocky Vista recently announced plans to expand into Utah.

Justin Rose was part of the first group of students to graduate from Rocky Vista in Colorado. Though the Idaho native applied to several schools in the West, he wasn’t accepted to any state-run programs.

“The for-profit part never played a part in it,” Rose said of his decision to attend Rocky Vista. “The biggest concern was I’m going to a new med school that had no background affiliation or anything.”

In retrospect, he said, it was the best choice because the school was under pressure to prove its first crop of graduates would succeed.

“It made them especially motivated,” he said.

After completing an emergency medicine residency and an ultrasound fellowship at the University of Kentucky, Rose is preparing to begin his career as a doctor in Boise. He said the job will allow him to continue chipping away at his $350,000 in student loan debt.

That’s nearly double the average debt carried by medical school graduates, according to the Association of American Medical Colleges. And because Rose attended a for-profit program, he’s not eligible for many federal loan-forgiveness programs.

Even with the high debt load, the for-profit med school was worth it, Rose said.

Opening state programs is costly, and for-profit schools are a good answer for America’s rural health care shortage, Rose said. His one concern is that the number of schools will grow faster than the number of residency programs.

Like their public and nonprofit counterparts, for-profit med schools face pressure to ensure their graduates get the valuable residency positions. At least 98 percent of grads from an osteopathic school must be placed in a residency or equivalent program or the school risks losing accreditation, Hasty said.

Medical schools must make their residency placement numbers available to the public. That accountability — and the fact that would-be doctors must pass medical board exams and meet state requirements before they can start practicing — should help hopeful medical school students make good choices about where to attend, said Claudia Goldin, a Harvard economics professor who has studied for-profit education models.

“If they’re not providing the requisite training and hands-on work, then it’s going to be public information that these students didn’t pass those exams,” Goldin said. “It’s sort of a good thing to have some external review.”

The differences between for- and nonprofit schools aren’t always apparent, Goldin said. Salaries for staff at nonprofits and public schools often are higher than for-profits, for instance. And regulators have stepped in to stop some nonprofit schools from taking steps deemed undesirable, such as when Yale was told to stop plans for an online physician’s assistant school.

“I’ve always tried to think about for-profits without the jaundiced view of them that we all now seem to have,” she said. “I always try to enter this with the notion that there are good training programs all over the place, and the nonprofits have some pretty lousy places.”

The for-profit schools are not without risk. Dade Medical College in Florida abruptly closed last year amid major financial troubles, its 2,000 health care students arriving on campus to find doors locked. The school received more than $100 million in taxpayer-funded Pell grants and student loans since it opened in 1999, according to the Miami Herald.

Investors are looking for a return on their investment, said Hasty, dean of the new Idaho school. But the ultimate goal is to create safe, competent physicians.

He sees Idaho, Montana and other rural states in the region as the epicenter of a nationwide family physician shortage.

“It’s not a donation — I mean, I’d love for them to donate lots of money for our scholarships,” Hasty said. “This is really part of a social mission.”

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Local News

A firefighter stands in silence before a panel bearing the names of L. John Regelbrugge and Kris Regelbrugge during the ten-year remembrance of the Oso landslide on Friday, March 22, 2024, at the Oso Landslide Memorial in Oso, Washington. (Ryan Berry / The Herald)
‘Flood of emotions’ as Oso Landslide Memorial opens on 10th anniversary

Friends, family and first responders held a moment of silence at 10:37 a.m. at the new 2-acre memorial off Highway 530.

Julie Petersen poses for a photo with images of her sister Christina Jefferds and Jefferds’ grand daughter Sanoah Violet Huestis next to a memorial for Sanoah at her home on March 20, 2024 in Arlington, Washington. Peterson wears her sister’s favorite color and one of her bangles. (Annie Barker / The Herald)
‘It just all came down’: An oral history of the Oso mudslide

Ten years later, The Daily Herald spoke with dozens of people — first responders, family, survivors — touched by the deadliest slide in U.S. history.

Victims of the Oso mudslide on March 22, 2014. (Courtesy photos)
Remembering the 43 lives lost in the Oso mudslide

The slide wiped out a neighborhood along Highway 530 in 2014. “Even though you feel like you’re alone in your grief, you’re really not.”

Director Lucia Schmit, right, and Deputy Director Dara Salmon inside the Snohomish County Department of Emergency Management on Friday, March 8, 2024, in Everett, Washington. (Ryan Berry / The Herald)
How Oso slide changed local emergency response ‘on virtually every level’

“In a decade, we have just really, really advanced,” through hard-earned lessons applied to the pandemic, floods and opioids.

Ron and Gail Thompson at their home on Monday, March 4, 2024 in Oso, Washington. (Olivia Vanni / The Herald)
In shadow of scarred Oso hillside, mudslide’s wounds still feel fresh

Locals reflected on living with grief and finding meaning in the wake of a catastrophe “nothing like you can ever imagine” in 2014.

Everett mall renderings from Brixton Capital. (Photo provided by the City of Everett)
Topgolf at the Everett Mall? Mayor’s hint still unconfirmed

After Cassie Franklin’s annual address, rumors circled about what “top” entertainment tenant could be landing at Everett Mall.

Everett
Everett man sentenced to 3 years of probation for mutilating animals

In 2022, neighbors reported Blayne Perez, 35, was shooting and torturing wildlife in north Everett.

Dorothy Crossman rides up on her bike to turn in her ballot  on Tuesday, Aug. 1, 2023 in Everett, Washington. (Olivia Vanni / The Herald)
Everett leaders plan to ask voters for property tax increase

City officials will spend weeks hammering out details of a ballot measure, as Everett faces a $12.6 million deficit.

Starbucks employee Zach Gabelein outside of the Mill Creek location where he works on Friday, Feb. 23, 2024 in Mill Creek, Washington. (Olivia Vanni / The Herald)
Mill Creek Starbucks votes 21-1 to form union

“We obviously are kind of on the high of that win,” store bargaining delegate Zach Gabelein said.

Lynnwood police respond to a collision on highway 99 at 176 street SW. (Photo provided by Lynnwood Police)
Police: Teen in stolen car flees cops, causes crash in Lynnwood

The crash blocked traffic for over an hour at 176th Street SW. The boy, 16, was arrested on felony warrants.

The view of Mountain Loop Mine out the window of a second floor classroom at Fairmount Elementary on Wednesday, Jan. 10, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
County: Everett mining yard violated order to halt work next to school

At least 10 reports accused OMA Construction of violating a stop-work order next to Fairmount Elementary. A judge will hear the case.

Imagine Children's Museum's incoming CEO, Elizabeth "Elee" Wood. (Photo provided by Imagine Children's Museum)
Imagine Children’s Museum in Everett to welcome new CEO

Nancy Johnson, who has led Imagine Children’s Museum in Everett for 25 years, will retire in June.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.