Installed a new barrel is like putting a new engine in a car. Setting back a barrel is like rebuilding an engine in a car. People do it (or have it done) all the time, but the cost/benefit has to be analyzed versus total replacement.
If it's a Mexican Model 1895 (small ring action) I'd think hard about not doing it.
If it's a M1902 ('98/Large Ring action) in good shape, I really liked the gun, it already fed and extracted well, and the receiver checks out OK, I'd go for it. Have the gunsmith check out the receiver lugs for setback. If there's already signficant setback, even in a large ring, I'd pass on a rebarrel.