The real issue is that when you get applicants, you have no idea how good they are clinically, or what their work ethic is. Your only insight into this is the letters or references that they provide you, which are presumably the people who will paint them in the best light.
I would rather ask a random attending at the program they come with than the references provided. Fortunately, most of the area programs have current staff that were in residency with me or one of my partners, so of course I am going to get the opinion of someone I not only trained at the same time as, but had over for dinner, had kid playdates with, and go on vacations with now. Just as I know they will tell me if someone sucks, they know that if I recommend a medical student that rotates with us for their program, they are getting the best of the class. In both cases you are trying to make your friends life better.
Hiring decisions that are wrong cost hundreds of thousands of dollars, and lots of political capital at your hospital. Not to mention that if you choose someone who is terrible, then dont have them become partner your group can quickly become tagged as predatory.
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*edit for spelling