After reading the Medicaid requirements, I think you need to go to the local appointment - tell them you want bariatric surgery - let them pick. Play dumb about the DS. What you want is to be approved first for bariatric surgery - that is ONE hurdle, especially with the disabling comorbidity requirement.
THEN when you're approved for surgery (and they can't deny it), you can say - oh, I've decided I want a DS, which is a standard of care procedure - and you don't have a local surgeon who can do the DS, so now I want an out-of-network referral to Dr. K or Dr. R. THEN they will say no, but we can likely help you at that point - but we need to see what their procedure will be.
THEN when you're approved for surgery (and they can't deny it), you can say - oh, I've decided I want a DS, which is a standard of care procedure - and you don't have a local surgeon who can do the DS, so now I want an out-of-network referral to Dr. K or Dr. R. THEN they will say no, but we can likely help you at that point - but we need to see what their procedure will be.