1. informal To be discharged from some activity, profession, active duty, etc., due to a medical issue. Primarily heard in US. I medicaled out of the Navy after I was diagnosed with Type 1 diabetes. She had to medical out of the rodeo when the infection spread to the rest of her leg.

2. informal To discharge someone from something due to a medical issue. In each usage, a noun or pronoun can be used between "medical" and "out." Primarily heard in US. He was found guilty of bribing a doctor to medical him out of the Army.