I go to UT Austin, which has a population size of 75,000 and basically its own city. An on site clinic is a practical measure since it's convenient and handles the simple stuff[1] for the campus body while deferring to specialists or hospitals for more complex procedures.
The clinic is paid through mandatory fees and thus "free". By comparison, visiting another clinic or doctor is less convenient and has a $10-25 copay (more if you don't have insurance).
> Sexual harassment is indeed a problem, here as well, but again I wonder why not go to the police? At least here, it's a criminal offense.
It is a criminal offense, but there is a lot of emotional fallout that the police aren't prepared to handle. Mental health and counseling services are supposed to help victims in these situations, not push them out.
[1]: List of services on page 4 (PDF): http://healthyhorns.utexas.edu/IMAGES/pdf/UHS%20Information%...