I know I said before, so sorry...but that dangly bit surgery is normally not as expensive as what you were quoted. It's, however gross and all, not really that complicated. They just usually cut the thing in half and then remove part of it, sew the rest down so the urine has a good place to go down. I would be hard pressed to think over 500 bucks. I know that sounds strange, but maybe call around.
Good luck with the foods.
Sorry for the modify, but I couldn't help and call my vet. She says that probably the modified food is good for the girls, too, as they are related (though girls don't as often show symptoms).
In terms of price for the surgery, it would well more than likely be less than a thousand dollars, and they estimated (for there) about 500-600 with pain meds and such. They would need to do an exam first which would be 57 bucks and I know it's Madison, but if you want their contact info, do PM, etc...I'll be online a fair amount this weekend. (They are open only until 12PM or 1PM I forget, today).