Nursing schools, PA programs, and medical schools are limited with faculty and student ratios and by clinical placement. Those numbers are dictated by the respective professional organizations and accreditation agencies, not the government. In fact the government has been getting nursing to try to relax some of those standards in order to put more nurses into the workforce but our governing organizations won't do it.
So right now, this is the double-edged sword: We can say no more and close hospitals. Or we change the standards, hire more faculty, and become more creative with how we deliver the education.
Some creative things that my profession has done to pump more bodies in to the profession, they have made second degree programs enticing, so if you already have a bachelor's degree, they fast track the nursing program so you get a BSN in about 14 to 16 months. If you have previous healthcare experience, you can get credit for that and not have to take certain classes.