That's absolutely ridiculous and they is NO reason why these two very common procedures cannot be performed at the same time.... HappyLabs said it, they will get more money out of you if you do indeed do these two procedures separately. Doing it separately would require your dog to be anesthetized twice, a spay typically takes 30 minutes, and the extractions of the two retained deciduous teeth would take about 10 minutes, if that. For each procedure, that's drugs they will charge you for, an IV catheter and fluids, monitoring of your dog while she's anesthetized, the time the actual procedures take, take home medications, an E-collar, etc. And quite honestly, that's irresponsible of that Dr. to want to put your dog under twice.

If I were you, I'd take my dog elsewhere! Keep us updated, please!