Yes, in the United States, Osteopathic physicians (DOs) are the equivalent of Allopathic physicians (MDs). DOs specialize in all fields of medicine (plus one that MDs do not: Osteopathic manipulative medicine) and practice in all areas of the country.
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Absolutely not. There is little difference in the training between DO and MD physicians. DOs undergo additional training in the muscular-skeletal system in medical school that is not included in an MD program. In some ways the DO training is superior to MD training because it emphasises the whole person and the relation of all systems to each other. But if you were to observe a DO and and MD at work in surgery, for example, you would not be able to tell the difference unless you saw the letters on the physicians name tag. It is sad that DOs experience stigma in this country because they are full-fledged medical doctors just like MDs. Hopefully as more and more people are educated about the differences and similarities this stigma will fade. DO schools have a reputation for being less competitive than MD schools. But in reality both DO and MD schools are highly competative. An applicant of today could be accepted to an MD program and rejected from a DO program, or visa versa. That is why many students applying to medical school apply to both programs. Whether you are trained as a DO or MD in the US, your training can be excellent. A DO can be licensed in exactly the same way as an MD or a DO can complete the osteopathic licensing exams, or both.
In the US, Doctors of Osteopathic Medicine (D.O.s) and Doctors of Medicine (M.D.s) are fully equivalent and can practice in any area of medicine.