Definitely, but if I'm comparing primary care providers in the same area between Kaiser and Hoag and Sutter or other large chains there isn't going to be much difference in service between the pool of available doctors at each one. Or even routine specialists for non-critical stuff like dermatology, you don't get any better care by going with the best. Where it matters is cutting edge, critical care like cardiology, oncology, and surgery where methods aren't standardized and individual skill (as opposed to drug innovation) plays a large role in outcomes.

I'd guess most healthcare services are more like a commodity than not. (Also, to the extent that there is important variation in quality of service, it's probably the nursing staff that matters for the vast majority of services. I can't remember the last time I interacted with an actual MD for more than a few useless minutes.)

While surgery may not be a commodity, the same mechanisms of price discovery lowering prices across the board apply. Even if a surgeon is more skilled, are they worth 3x the cost?