residency for residency?

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I don't think so. Residency programs get federal funding, as opposed to med schools which get state funding (if they're not private).
 
I'm curious, does in state/out of state come into play when applying to residency programs at all?

Residencies don't care about in state. They may, however have an easier time believing that they are going to be ranked highly by you if you are applying from the region, and they may have a positive familiarity with graduates of local med schools. That being said, you can go out of state for residency fairly easily, you just may need to do away rotations and sell yourself.
 
Often (not always), you have a better chance matching at you own medical university. So, if you're trying to end up somewhere, establish residency in a state, then attend medical school in that state, then go to residency in that state.
 
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