Simpson University requests $10 million in county funds as ‘seed money’ for medical school

Today Simpson University President Norman Hall fielded hard questions from Supervisors Allen Long and Matt Plummer after a brief progress update into the need for a North State medical school turned into a pitch for $10 million in seed funding for Simpson to launch the project. 

Hall spoke before the Shasta County Board of Supervisors during a discussion-only presentation that Supervisor Kevin Crye eventually revealed was placed on the agenda so supervisors could “do their homework” in order to be prepared to support the project during annual budget talks later this spring.

“I could have sprung this at the last second in June,” Crye said of the $10 million ask that he’s supporting, “but that’s not fair to you guys. It’s not fair to the community. It’s not fair to Simpson and all the stakeholders.

“I would just encourage you guys to do the work,” Crye continued. “And if you guys come back and make a great case of why we shouldn’t spend the $10 million … then I’d say you’re right, but that has to be proved, and you have an opportunity.”

Plummer pushed back, saying the onus isn’t on supervisors to prove why the county shouldn’t fund a private project with $10 million; instead, it’s the responsibility of those requesting the funds to present a case that is sufficiently robust to prove the project should receive the money. 

His comments about steps leading up to any funding process referenced a recent decision by the board that provisionally awarded almost $2 million to a proposed behavioral health project that has now come under scrutiny. During a recent board meeting, Plummer said he believes the board needs to more fully scrutinize projects before funding them, asking supervisors to consider establishing a consistent set of metrics for doing so.

‘We don’t see the homework’

Hall told the board today that a small consortium that’s been meeting since last year to discuss opening a North State medical school wants Simpson, a private Christian university with an undergraduate enrollment of about 775, to take the lead in establishing it.

He outlined the steps Simpson has taken to look into the opportunity including working with a company called CFO Colleague that, he said, specializes in higher education initiatives. The university also developed a case study examining market demand and long-term viability, Hall explained.

“The conclusion is clear: The North State not only needs — it is uniquely positioned to support and sustain — a medical school,” Hall said. “The commission voted to focus on launching a full, fully accredited, four-year medical school in Redding through Simpson University.”

While county supervisors spent more than an hour discussing the medical school topic today, the board’s staff report for the presentation contained only minimal information, lacking information about both the case study Hall mentioned and the private partner that’s being considered as the lead investor in the medical school, noted today as Salud Education. 

Instead of providing such documentation, proponents of the project paraded a number of individuals before the board to praise its potential for success and impact. Those speakers included four Simpson University trustees and staffers, along with a local medical doctor and an executive from Shasta Regional Medical Center.

Dean Germano, the founder of the Shasta Community Health Center and a member of the Shasta Assessment Redesign Collaborative, or SHARC, also spoke in support of the project. 

“Simpson is doing the homework,” Germano said. “They’re pulling in the right people. We’re asking the right questions. There’s a lot of work yet to be done, but I am encouraged by these efforts.”

His statement prompted Plummer to ask where the homework was. 

“I’m glad to hear Dean Germano saying that his experience is that you’ve done the homework,” Plummer said to Hall during board discussion. “We don’t see the homework, though.”

While formal documentation was scarce, Hall outlined some of the group’s work behind the scenes during his presentation, including a visit to Kentucky to learn from a medical school that’s being viewed as a model project. Based on the blueprint seen there, Hall said, Simpson has a goal of launching its first doctor of osteopathic medicine class by 2030.

“We have engaged a development partner, Salud,” Hall said, “and retained Washington, D.C. experts to pursue federal and state funding, recognizing that rural physician pipeline development is currently a national priority.”

The university president said that Simpson is willing to donate land for the project and laid out two possible financial models for gaining a building, citing a cost of $100 million for a leased and renovated facility or $150 million to build a new one. 

Under the $150 million model, Hall explained, $50 million would come as an investment from Salud Education, $50 million from other private investors, and the last $50 million from fundraising, which he hoped would include $10 million from the board. 

“If you’ve done fundraising, you know how important it is to come back to the initiating body,” Hall said, “to show the value of the project. And so the first $10 million would be very normal to ask out of this body. And it’s our responsibility to fundraise the other 40 million.”

Board Chair Chris Kelstrom said relatively little during board discussion. Supervisor Corkey Harmon worried aloud that a medical school could turn Shasta County into a “mini Silicon Valley.” But Harmon also expressed optimism, noting that a project such as this could provide local opportunities for his children and grandchildren, becoming an economic driver for the region.

It was a thought that Hall quickly reinforced.

“It actually is a significant economic engine,” Hall said, “perhaps the most economic engine you can get, dollar for dollar, because it dramatically impacts the airport, entertainment, restaurants, real estate, construction, grocery, fuel, all the way across the board. It floats all the boats.”

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