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Granted but that's not hideous in itself.
The Navy is circumventing the match process for the HPSP and USUHS students by running a captive APA accredited internship. Believe me, it's ridiculously rigorous. Circumventing the match with an APA accredited and high quality internship doesn't really bother me... but as you point out, that does not appear to be what is happening in this case.
Is far far different than what is happening here (and some other places). I know people who have gone through the Navy, Airforce, and Army sites...and all three people said the training experiences were all top-notch.
I know there is a captive site at one of the Texas programs, but they are a solid university with an APA-acred. site. My issue with 'circumventing' is that the students are not being counted in the imbalance and the training standards of all of these random sites has not be adequately assessed. Again...APA-acred. was the MINIMUM standard, until people/groups started making up alternative paths.