There is hereby established a statewide medical education residency program for the purpose of training resident physicians. The Dean of the College of Medicine of the University of Nebraska Medical Center shall be responsible for implementing the development and expansion of residency programs in cooperation with the medical profession, hospitals, and clinics located throughout the state. The dean and the departmental chairmen in the College of Medicine shall determine where residency education and training shall be established, giving consideration to communities in the state where the population, hospital facilities, number of physicians and interest in medical education indicate the potential success of residency education and training. The communities chosen shall be selected because they can be expected to fill requirements of the American Medical Association for participation in a residency program.