Let's start with backing off from "the doctors responsible for such procedures should certainly lose their licenses, board certifications, etc." and then later look at working backward from there as regards your statement that is taken from.
I'm not the one who is trying to change the MH system. You are the one that wants to get rid of the current approach - at least to the issue of self mutilation and what to do about people who do that. So it would seem to be up to you to identify the changes you are looking for.
stay safe.
I would just expect health professionals to help mentally challenged folk to live safely within reality, rather than enable them to contradict reality to their own peril. To adapt
to realities they may not like, rather than to adapt reality itself to their mental disorders. That is, if the patient is an able-bodied man who thinks he is disabled, that they should help him to understand the truth, rather than helping him conform to his delusion. The same, obviously, would go for patients who believe they're of another sex. I would also expect that anyone who encouraged or assisted with those sorts of medical procedures (sex changes, and the like) would be seen as clearly violating the Hippocratic oath, and whatever standards are set (or should be set) for the various licenses the state requires for said professionals. (Which is not to say that the state should require such licenses, but so long as it does...)
If anyone asks, just let them know that I propose these changes based on principles that should be obvious to anyone, and not on the basis of any professional credentials.