As a university, UVA is very well recognized - they often consider themselves (appropriately so) a public ivy league school.
As for the medical school, let me tell you about some of their graduates: my brother is a cardiology fellow (WashU) and was a chief resident of internal medicine (Vanderbilt) prior to that...he has spoken very highly of UVA medical school graduates he has seen and their abilities as physicians. Moreover, speaking to UVA graduates, they have nothing but good things to say about their training.
Take a look at where their students match for residency. The school fills the spectrum of competitive residencies as well as producing a lot of internal medicine docs. More importantly, their medical students match at very good hospitals for their residencies!
I don't know where you get the idea that UVA is overranked...they have a lot of great research, high standards for their accepted students, and great residency director scores!
Hope this helps!