not in my family!

So I've often read posts people have written about remarks made by family members and thought "wow, thank goodness people in my family aren't like that!" Well. We were with an extended family member, someone we might see moderately often. Hubby and I were complaining about our previous pediatrician who happened to be aa. The new doc (who is white) happens to be a classmate of mine and I really like her and she did a really thorough examination. Had a better bedside manner with babies too. So this family member (who happens to be Indian and a college professor too) says, "where did she go to school, the islands?!" me: "no, actually temple university." this person: "Oh she probably just got in because she was black." (smiling and snickering meaningfully to someone else next to me who laughed.) At which point hubby cut in and said "you can't say things like that in front of us or our children." I'm not sure if I should make a further deal out of it or avoid this person or just wait and see what falls out. Oh, and I feel bad for any aa students he might have also, with this guy being so biased right off the bat, yikes!