An extreme version of this is: What should the German health service do if someone says they are willing to donate a kidney as long as it doesn’t go to a Jew?
On the one hand, nobody is forced to donate a kidney and by forbidding this we’re making things worse for an innocent patient. On the other hand, it can be seen as the state sanctioning this kind of discrimination.
I’ve heard of “Short-term utilitarianism”, but I like yours better.