As Museum said, my understanding is that medical schools are required to obtain state approval in order to get started. In other words, Rice could buy a hospital system and operate it, but would not be allowed to have a school to teach doctors or nurses unless the state board of accreditation approves it.
Silly I know.
A state the size of Texas and a city the size of Houston needs more medical schools, as the state and the nation is facing a huge doctor and nurse shortage.