Bailey cleared waivers Wednesday afternoon, allowing him to revert to the Rams' reserve/non-football injury list so he can stay around the team while not counting against its 90-man roster.
Bailey, who is recovering from two gunshot wounds to the head suffered on Nov. 24, has not been cleared to return to playing football despite returning to workouts and getting multiple opinions.
"He will not be able to play," Rams coach Jeff Fisher said. "He's not been cleared. As I've said numerous times, he's lucky to be alive. ... I'm so impressed he's gotten back into shape and is willing to play, [but] really at this point, there's no medical research that will permit him to play. He's seen several specialists. With that being said, we're going to take care of Sted."
In taking care of Bailey, the Rams plan to offer him the opportunity to work with their coaching staff, a task Bailey has already eased into during the team's organized team activities.
Bailey has been present for OTAs the past two weeks, helping out with the receivers and on special teams.
"There's a lot of different things [he can do]. I'm going to be selfish and try to bring him over on the coaching side and have him help," Fisher said. "He's done some of that already out here. He's worked with some of our punt cover guys.
"Sted was an outstanding special teams player for us and outside gunner, so there's a lot of work behind the scenes that needs to be done, so we'll put him behind a desk and bring him out on the field and see how he likes it."
This isn't the first time the Rams have taken care of one of their receivers dealing with a medical issue by giving him an opportunity to help in other ways.
Last year, wide receiver Bud Sasser was unable to pass a physical because of a heart condition. The Rams waived Sasser after signing him to his rookie contract anyway, paying him a signing bonus of $113,737 and then giving him a job working with the team's alumni relations and youth football departments.