The woman underwent surgery in a private hospital on Tuesday. "Military hospitals do not have the surgical expertise to perform this type of surgery, therefore it was conducted in a private hospital," the Pentagon said in a statement provided to NBC News . "Because this service member had already begun a sex-reassignment course of treatment, and the treating doctor deemed this surgery medically necessary, a waiver was approved by the director of the Defense Health Agency. The Supplemental Health Care Program will cover this surgery in accordance with the Department's interim guidance on transgender Service members."