One of my friends just got the podiatric surgical residency program at DMC. He said he was told by an ortho resident that Wayne State's program was shutting down but he didn't say why.
I heard there was interest by St. Johns and Oakwood hospitals in picking up the residency. I was also told the reason they're not accepting people is not because the residency is gone forever, but that there is too much uncertainty regarding their contract with the DMC that they wouldn't in good faith accept new residents until they knew what the future was.
Another wayne student here...I heard the same thing as ddom. I also heard (not sure how true this is) that if they do resolve the contract issue that they would scramble all of their spots.
In regards to current residents, they can go to any program that will take them. The program doesn't need to have available spots either. Their salary is already paid by the ACGME.