Maybe, they're big on nepotism and that sort of thing (they interview all students who rotate there and apply for their residency). Of course, what happens if I get both an acceptance to a residency program as well as a job offer (or the prospect of one) to work at a hospital as a new grad? I would really be hard-pressed to choose to do a residency over starting FT work, especially if I had an offer in-hand.
You will just decline the residency. I know people will freak out over this, but really all that it is is that you are not allowed to ever participate in the match again (which is fine because you don't seem to want to do that anyways once you got the job)