The argument being made is that USA is allowing companies and medical practitioners to price gouge, therefore allowing for wages for medical practitioners higher than can be offered locally.

I don't think inflating your own wages to match a system that appears systemically ineffective is the right response, especially when your own system is more effective overall than the one you are losing talent to.

In the USA, medical practioners get paid more and the country might gain talent as a result, but the people pay more for it and it results in it being less accessible and less effective overall.