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According to the Normandy SR-2 Upgrades on the Mass effect Wiki, the Med-Bay Upgrade only do this :

Using this unit will immediately and completely heal your scars. Further scarring will not occur regardless of the actions you take.

Apart form the cosmetic improvement, nonexistent is you choose the paragon path, is there any reason to throw 50,000 Platinum into the research of this upgrade?

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up vote 5 down vote accepted

It makes no difference to the ending, and does really appear to be a purely cosmetic upgrade.

You can save all your crew members without it, unlike some of the other upgrades.

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Also, it's generally considered a waste of resources unless you do a new-game+ –  MBraedley May 10 '12 at 20:13
    
@MBraedley why "unless you do a new-game"? What benefit you could gain from it in a new-game? –  DavRob60 May 11 '12 at 11:44
    
@DavRob60 - Because you get a ton of resources, and if you still mine a small amount, you can pretty much afford every single upgraded offered. Although I should add the upgrade would effect your character import if you plan on playing Mass Effect 3. It should be of course noted that it takes very little effort to get 50,000 Platinum and afford every single upgrade. My only limitation was with being able to purchase the upgrades, the only way I see that being possible, is with new-game+ –  Ramhound May 11 '12 at 11:59

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