No it is just one of many metrics indicating the quality of not only the institution but mainly the quality of who studied there.
When I select a doctor, where they got their medical degree is one of the factors I use in my selection.
I needed a cardiologist so I didn't just pick one out of the yellow pages. I didn't select one of the local ones, many who got their degrees at IU. I selected one who I had to travel over 100 miles to see who got his medical degree from Columbia and was president of the American Heart Association. He was also practicing at a top medical school, Northwestern, which was another factor in my selection.