In my experience, the answer is yes. I actually wrote my personal essay about how my own psychotic break led to my eventual path into medicine - it was important to me to be totally honest for my first cycle instead of watering it down. Not only did I get interviews/waitlists and acceptance, but I also met another current OMS 2 with Bipolar disorder who has also been psychiatrically hospitalized. If it's anything similar to nursing, they do audit my nursing license for behavioral concerns and your license can be revoked for severe mental illness if you choose to refuse treatment (I'm a psych nurse, we've had doctors and nurses in here before who refused meds and lost their licenses due to the safety concerns, and those who come in and go straight back to work when they're done), but your chances of being a doctor aren't destroyed because of a hospitalization if you're appropriately seeking help - at least, that's my experience.