I think that only applies to emergent medical care, not elective surgeries. Religious entities are permitted to discriminate based on religious ideology, sadly.
I don't know if it's a private hospital or not (I didn't read the article), but most of them can refuse a lot of things that a publicly funded hospital can't.
You have to click the link in the link to get to the full story,here is part.
http://www.insidebayarea.com/search...h-www.insidebayarea.com-www.insidebayarea.com
When it was owned by Catholic Healthcare West, a large hospital conglomerate, Seton apparently did allow transgender surgery.
But when the Daughters of Charity, which took ownership of the hospital in 2002, learned in 2006 that such surgeries were still taking place, they were stopped, said two sources who asked not to be identified because they were not authorized to speak publicly for their organizations.
Wertz thinks Seton's policy violates the Unruh Act, a state law that prohibits discrimination on the basis of gender, gender identity or sexual orientation.
"There's simply no religious exemption in the Unruh Act," Wertz said. "We're talking about a type of care that's OK for one class but not another."
While her case winds through the courts, Hastings said she has put off having the breast augmentation surgery, in part because her breasts are continuing to grow through hormone therapy.
However, she is planning to have surgery to feminize her nose in February. Hastings, who works for the city of San Francisco as a tax collector, said she was raised Catholic. "I think God loves me no matter what," she said."
Reading that it says basically if you do something for someone you have to do it for anyone.Yeah they can not do abortions I guess on religious grounds but breast augmentation I'm sure is something they allow so the law says they can't discriminate.Guy wants bigger boobs the idea may not be their cup of tea but I think they will lose the case.