A precarious fight between one of the nation’s leading health providers and one of the state’s top insurers ended amicably on Saturday.

In a press release, Memorial Hermann Health System announced it has reached an agreement with Blue Cross Blue Shield of Texas, allowing those insured by the company to continue to have in-network access to Memorial Hermann facilities and affiliated providers for their care. Previously, the two parties allowed an April 1 deadline to pass without a new contract, leaving thousands of Houstonians in limbo.

“Since we began negotiations last summer, our priority has been advocating for our patients, affiliated providers, and the health and well-being of the Greater Houston community,” Memorial Hermann said in a statement. 

The lapse in coverage at Memorial Hermann over the last week for those insured by BCBSTX meant patients had to temporarily pay higher medical costs or find new doctors within the BCBSTX network. With the new deal effective immediately, BCBSTX is informing individuals that the deal is retroactive to April 1. 

“Any claims processed as out-of-network on or after April 1 will be reprocessed as in-network,” BCBSTX stated on its website. “You don’t need to take any action. Please be patient as this may take several weeks.”

BCBSTX customers with questions about their coverage should call the number on the back of their insurance ID cards, according to Memorial Hermann. The hospital system also stated that patients who had canceled upcoming appointments could contact their respective health care providers to reschedule.

Blue Cross covers nearly 8 million Texans and serves 14 hospitals in the Houston area. Before the deal between BCBSTX and Memorial Hermann was reached, Memorial Hermann claimed that BCBSTX had made “unreasonable demands,” warning that a lapse of coverage could jeopardize continuity of care for those in need. BCBSTX countered, stating that it was seeking an agreement that would keep care affordable for its members.

The resolution mirrors a similar contract fight the two entities had in 2022. After neither side could agree to a then February 28 deadline, a new four-year agreement was ratified two weeks later.