If Iowa State was going to do it, it needed to do it 10-20 years ago. There has been an absolute explosion of medical schools nationwide in that timeframe --
https://en.wikipedia.org/wiki/List_of_medical_schools_in_the_United_States
I doubt the Board of Regents would assent to a duplication of costs and programs like another medical school in Ames or Des Moines, too, even if Iowa State's focus on "life sciences" does make some sense for that theme. I guess humans do not apply for that. Iowa has always been the home of the professional schools for the state of Iowa save for veterinary medicine, and I imagine it is going to stay that way.
I would guess the response would be that, if you really need to graduate more doctors trained in Iowa, then Iowa would just up its number of admissions. The marginal cost of adding, say, 50 more admissions in Iowa City compared to opening up an entirely new program in Ames are going to be wildly different from each other.
It is already harder to find a residency slot now than it was even a few years ago. The reasons for that are complex and mostly related to federal policy, but I will just say that it is already making it
really hard to match for non-U.S. docs and those educated at less prestigious DO programs. It is even creeping up into the less prestigious MD programs. Adding more and more supply to that, unless more residencies become available (which is another conversation), is only going to make that worse.
At some point, medical school couldugh a lot of hell, too, for salaries that are not at the commanding heights that many people associate with doctors.