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That really doesn't seem fair to penalize someone because of the state they are from.
Ah yes, poor Texans with their good, cheap, in-state-preferring med schools

I do see your point, but everyone at all levels of this system are making judgements and shifting personal rankings on the basis of state ties...schools have IS preferences, applicants have preferred states to live in, and ranking-paranoid schools have to consider those factors when maximizing their precious stats!