Yes the typical treatment for this is surgical removal of the femoral head FHO surgery and dogs may run funny after this is done but they run without pain once healed up.
The problem is the other option of hip joint replacement can't be done in so small a dog breed as the joints used may be too large.
This is also called Legg-Perthes or Legg-Calve- Perthes disease.
It is considered an inherited issue.
You can read about FHO here comparing it to THR (total hip replacement)
http://www.gcvs.com/page1/page15/page35/page35.html
And more here showing the different types of THR systems including one for small dogs
http://www.acvs.org/AnimalOwners/HealthConditions/SmallAnimalTopics/TotalHipReplacement(THR)inDogs/
It is possible she is too small for the smallest THR system so FHO may be the only option suitable.
You would also have to manange her weight to keep her slim and reduce pressure on the hips or the FHO site.
Hope this helps you!
Dog Expert:Rescue, Train,Breed,Care
30+ yrs dog home vet care & nursing, rescue, behavior&training, responsible show breeding, genetics