As someone who has worked at Des Moines University (and Iowa State) I found this thread interesting. I think there would be an opportunity to attract students, but as
@Sigmapolis referenced, the real difficulty is in the medical rotation and residency spots locally (and nationally) which makes life really difficult.
Interestingly, DMU's DO med student class has a much larger class-size than the U of I. About 220 per class for DMU compared to 150 for Iowa. And there are more DMU grads than U of I grads practicing in the state of Iowa. DMU would also get thousands of applications for those 200+ med school spots.
Long story short, I think there would be an opportunity, but not sure the state of Iowa has the infrastructure with its hospital systems to make it work long-term. Unless there was a dedicated hospital just for Iowa State it'd be very tough.