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While bacteria are generally given a bad rap due to the types that harm the body, many types are essential. Vitamin K+ absorption in the body is due to the work of intestinal bacteria, without them no vitamin K. Good bacteria also out-compete pathogenic bacteria to an extent, so that infection doesn't occur.

As far as direct medical use of bacteria, there isn't much significance, however bacteria are used in laboratories to create medicine. Human analogs of Insulin Hormone for example, are created by genetically modified bacteria that while consistently fed produce exponential amounts of Insulin hormone, so that means no more need for chopping up cow and pig pancreas to extract inferior forms of the hormone... Making diabetics much happier...

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Q: What is the medical uses and significance of bacteria?
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