ASU breaks ground on new medical school in downtown Phoenix

Arizona State University broke ground on its first-ever medical school Thursday in downtown Phoenix.

The new John Shufeldt School of Medicine and Medical Engineering will be housed within the ASU Health Headquarters, as will the School of Technology for Public Health, the Edson College of Nursing and Health Innovation and the College of Health Solutions.

Dr. John Shufeldt, the namesake of the new medical school, made a 9-figure donation to the university, the second largest in school history. 

“This day could not be more exciting,” he said at the groundbreaking ceremony. “It's a culmination of, clearly, years and years of planning and preparation for improving the health outcomes of Arizonans — people, really, all over the world.”

On March 24, the Phoenix City Council voted unanimously to grant $38 million to ASU Health, in addition to the $12 million already allocated by Phoenix voters.

Mayor Kate Gallego called it the single largest investment in the bioscience sector in Phoenix history.

“ASU has agreed to help us with challenges facing the city, such as homelessness and occupational cancer in our first responders,” Gallego said. “To have some of the best experts in the world addressing our needs is such a gift to us, and we're really excited about the solutions we'll find with ASU.”

Gallego said ASU Health will collaborate with the city and mayor's office on three key pillars: occupational health, women’s health, and urban public health, including heat and homelessness.

ASU Health Headquarters is scheduled to open in 2028 at Fillmore and Fifth streets on the university’s downtown Phoenix campus.

Shufeldt was CEO of NextCare

Shufeldt grew up in suburban Chicago, where he worked as an emergency room orderly and ambulance driver.

Shufeldt has a bachelor's degree from Drake University and an MD from the Chicago Medical School. He has an MBA and juris doctorate from ASU.

In 1993, Shufeldt founded Arizona-based NextCare Urgent Care, where he served as CEO until 2010.

In 2010, NextCare was investigated by the Department of Justice for submitting false claims to Medicare, TRICARE and other federally-backed health programs. The Justice Department alleged NextCare billed for unnecessary testing and inflated billing for urgent medical care.

According to court documents, Shufeldt denied any wrongdoing, but resigned as CEO in mid-August 2010.

In 2012, NextCare settled with the United States for $10 million.

When pressed for comment by KJZZ, ASU President Michael Crow said he had no concern about Shufeldt’s alleged involvement in the Medicare scheme.

“I think the details there are, you know, it's a complicated arena,” Crow said. “And, you know, we didn't see anything that was untoward.”

EDITOR'S NOTE: This story has been updated to correct the name of the Edson College of Nursing and Health Innovation.