Recent advancements in large language models (LM) like OpenAI’s GPT-4 have shown promise in healthcare, particularly in medical question answering and clinical applications. However, their deployment raises privacy concerns and their size limits use in resource-constrained environments.Smaller open-source LMs have emerged as alternatives, but their reliability in medicine remains underexplored.This study evaluates small LMs in the medical field using the MEDIQA-CORR 2024 task, which assesses the ability of models to identify and correct errors in clinical notes. Initially, zero-shot inference and simple fine-tuning of small models resulted in poor performance. When fine-tuning with chain-of-thought (CoT) reasoning using synthetic data generated by GPT-4, their performance significantly improved. Meerkat-7B, a small LM trained with medical CoT reasoning, demonstrated notable performance gains. Our model outperforms other small non-commercial LMs and some larger models, achieving a 73.36 aggregate score on MEDIQA-CORR 2024.