Even in actual healthcare, unfortunately, you'll get some people making snide remarks in privately. Sometimes its just humor to take the edge off. Its not professional, but its reality. i've been on the other side of the wall for job and volunteer applications. i dont think someone cracking a mean joke means much for your chances.
they should have given you a much more sincere apology. i think going over your app with you was an attempt at doing so. its just unfortunate because as an applicant you're ultimately a beggar and other than being a good person there is no incentive to be courteous.
This is very stressful and don't let it ruin your confidence. Just move on to the next school, and most importantly, look to what you can do to get in as a reapplicant. that's the only game you're playing.