Alternatively, the government starts relaxing legal requirements on medical schools with the intent to flood the market with doctors. This not only severely depresses their wages, it leads to unemployment and indirectly to charlatanism and quackery as people try to make ends meet. Better hope the future AI doctors are good.
Alternatively alternatively the government could subsidize medical school for doctors and nurses reducing financial barriers and allowing more medical professionals without lowering standards.
Subsidizing existing schools merely makes it easier for existing medical students. It does nothing to increase the number of doctors entering the jobs market per year. You need to make more schools to increase that number.
You can't just conjure up a medical school out of nowhere though. That's extremely hard and expensive. You can do it if you relax your standards. Maybe by making the "hospital" part of the school optional or something. Students won't see patients but what does it matter.
