Benefits (How this will benefit the server and game as a whole): Will prevent Squad Engineers from doing some arbitrary hacking in order to receive an equally arbitrary piece of equipment. In addition, it is a nice looking sprite that would love to see the light of day more often.
Details (Description of how you think this would work, the benefits, etc): Either replacing the standard armor with the medic armor in lockers, or placing them into an unhacked medivendor slot will work.
Here is what the Medic Armor looks like with the rest of the medic gear:


I promise it looks even better on people other than Kath.