a flood of medical graduates doesnt mean there will be more doctors since its capped by the number of training positions. it will just compound the problem we have now/will have very soon where we have a whole heap of unqualified junior doctors who cant actually practice independently.
also, opening a medical school in a rural area does not mean that the graduates will practice there. you will just get a lot of city students with marks not good enough for the big unis trying to get in with no intention of staying afterwards. unless, they exclude city students completely in which case i would really question the calibre of medical grads they produce.
TLDR, it doesnt solve the problem of the rural doctor shortage and compounds the problem of the "medical student tsunami".