Here in California, it's common. A hospital provides a grant to a nursing program and allows the program to use their hospital as a clinical site. The hospital recieves two benefits. First, they get first crack at hiring the graduating nurses. Second, they typically get a number of seats per entering class set aside for their employees.
John Muir hospital in Walnut Creek CA has an arrangement with Cal State Hayward, whereby Muir gets 20 (out of a class of 80) seats reserved for their employees.
It's a win-win, and a way to avoid the 2-3 year long waiting lists