Say your parent was a physician at said Hospital "A" and had a pretty good reputation as well as a fairly vast referral network of friends and acquaintances at said Hospital "A". Now say you applied for a residency at that hospital under either your parents sub-speciality (higher chance) or another, it would be foolish to think that your parent could not pull some strings and get you that residency spot. I have seen it happen and I know it will continue to happen, that is society. I am not saying that you will automatically get into a Harvard/Hopkins residency because your parent is that, but if you have great board scores and an important parent there it is not inconceivable. More likely this connection is seen at smaller hospitals or less highly ranked medical centers. That is reality folks, deny it all you want but it is a definite, 100% advantage in our society.