Summer Bryant and her husband, Dylan, are relieved Memorial Hermann and Blue Cross Blue Shield of Texas resolved their contract impasse so their 17-month-old, premature daughter, Caroline, can continue receiving her intensive therapy at Children’s Memorial Hermann Hospital.
Jason Fochtman/Houston Chronicle
Easter photos of Summer Bryant, her husband, Dylan and their 17-month-old daughter, Caroline, are seen in their home, Thursday, April 9, 2026, in Montgomery. Summer and her husband are relieved Memorial Hermann and Blue Cross Blue Shield of Texas resolved their contract impasse so their daughter, who was born four months premature, can continue receiving her intensive therapy at Children’s Memorial Hermann Hospital.
Jason Fochtman/Houston Chronicle
Caroline Bryant spent the first 10 months of her life in an incubator. Born 24 weeks premature in late 2024, the fragile baby developed bacterial meningitis and survived 13 brain surgeries at Children’s Memorial Hermann Hospital.
Her life-saving care cost more than $13 million in medical bills — most of which were covered under the family’s insurance plan with Blue Cross Blue Shield of Texas. But for the past 10 days, her parents were unsure if she could continue to see the doctors who helped her survive because the health system was no longer in network for their insurance.
Memorial Hermann Health System and Blue Cross Blue Shield of Texas agreed to a new contract Saturday that brought the health system back into the insurer’s network. The sides had failed to agree to a deal before an April 1 deadline, leaving thousands of patients across Houston with commercial or Blue Advantage Marketplace plans facing the possibility of having to pay out of pocket to keep their current providers or switch to new doctors for treatment.
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READ MORE: Memorial Hermann, Blue Cross reach deal to restore in-network coverage for thousands of patients
The agreement is retroactive to April 1, meaning that any claims processed as out-of-network since then will be reprocessed at in-network rates, Blue Cross Blue Shield said.
The agreement is a relief to parents like Summer and Dylan Bryant. Caroline is still receiving highly specialized treatment at Memorial Hermann, so the Montgomery family was anxiously waiting to see whether the health system and insurer would reach a deal before Caroline’s next appointments with her neurologist and neurosurgeon next month.
“I had high hopes they would come to an agreement,” Summer Bryant said Saturday. “It took a little longer, but definitely not as long as it would have been. We’re very thankful.”
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Summer Bryant plays with her 17-month-old daughter, Caroline, in her room, Thursday, April 9, 2026, in Montgomery. Summer and her husband, Dylan, are relieved Memorial Hermann and Blue Cross Blue Shield of Texas resolved their contract impasse so their daughter, who was born four months premature, can continue receiving her intensive therapy at Children’s Memorial Hermann Hospital.
Jason Fochtman/Houston Chronicle
Uncertainty for patients
The period of uncertainty highlights how contracts between providers and insurers affect access to health care, and how disruptions can impact patients in myriad ways.
Some patients told the Houston Chronicle they were relieved Memorial Hermann and Blue Cross Blue Shield agreed to a new deal, but they were frustrated by repercussions for their care over the past 10 days.
Mary Clair Lyons, 60, of Houston, was recently diagnosed with an aggressive form of breast cancer and scheduled a double mastectomy at Memorial Hermann Cypress Hospital on April 6. The hospital informed her March 31 that she needed to pay $28,000 out of pocket to keep the procedure on the schedule, she said.
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She decided to pay, but the hospital canceled the surgery amid the contract dispute, Lyons said. It took a slew of phone calls over several days and help from a friend who is a lawyer to ensure the procedure took place on Monday.
Lyons said Saturday that she is confident Blue Cross Blue Shield will reimburse her. But she’s frustrated by the uncertainty, and worries she’ll need to make more phone calls and send more emails to secure a reimbursement.
“There was just no justification for it,” she said. “Now I have to find out how to get my money back. It’s beyond annoying.”
Memorial Hermann Health System’s flagship Texas Medical Center hospital is visible Friday, April 12, 2024 in Houston. The health system is now out of network for Blue Cross Blue Shield of Texas members amid a contract dispute.
Kirk Sides/Staff photographer
Hospital, insurer reach new deal
Hospitals and insurers routinely negotiate contracts that set reimbursement rates for medical services, but the sides typically come to an agreement before the older contract expires. Such talks have become more contentious in recent years, though, due to trends such as rising health care costs and consolidation in the industry.
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Blue Cross Blue Shield accounted for more than 26% of the state’s health and accident insurance market share as of 2024 — nearly three times more than the second-largest insurer, UnitedHealthcare, according to Texas Department of Insurance data.
Memorial Hermann is Houston’s largest health system, with more than 1.8 million patient visits annually across 14 hospitals and hundreds of doctors’ offices and clinics.
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Memorial Hermann previously accused the insurer of asking for “unreasonable demands” in a new contract and dragging out talks until the April 1 deadline as a negotiating tactic. However, both sides told the Houston Chronicle this week that they were still committed to reaching a deal, and Memorial Hermann acknowledged “the uncertainty, anxiety, and disruption” the contract dispute had caused.
“Throughout these negotiations, our priority has been to secure a fair agreement that supports the long-term sustainability of the high-quality care we provide and recognizes the value of our physician network,” Memorial Hermann said in a statement Saturday.
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The new contract also brings Memorial Hermann back in-network for Blue Cross Medicare Advantage plans. The health system had been out-of-network for those plans for Jan. 1, when its most recent contract for those plans expired.
Summer Bryant plays with her 17-month-old daughter, Caroline, in her room, Thursday, April 9, 2026, in Montgomery. Summer and her husband, Dylan, are thankful Memorial Hermann and Blue Cross Blue Shield of Texas resolved their contract impasse so their daughter, who was born four months premature, can continue receiving her intensive therapy at Children’s Memorial Hermann Hospital.
Jason Fochtman/Houston Chronicle
Patients relieved but frustrated
Some Memorial Hermann patients decided to find new doctors before the new contract was announced.
John Lockhart, 36, recently started a new job with a Blue Cross Blue Shield insurance plan that took effect April 1. His primary care doctor was affiliated with Memorial Hermann, so he switched to a new physician for his next doctor’s appointment on April 17.
The Jersey Village resident struggled with the decision because he developed a close relationship with his former doctor, who helped him through prior health challenges.
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He said Saturday that he’s unsure whether he’ll now try to switch back to his former doctor.
“I feel this is another example of how the health care system in the United States is broken,” he said in a text message.
Lyons told the Houston Chronicle that she filed complaints with Texas Health and Human Services and the Joint Commission, which accredits health care organizations across the United States, over the handling of her surgery.
However, her primary care doctor and dermatologist are affiliated with Memorial Hermann, and she plans to continue to seek additional treatment for her breast cancer through the health system. Lyons said she receives high-quality care through the health system, but she’s frustrated how the contract dispute affected scheduling and payment for her surgery.
“The care is very good at Memorial Hermann,” she said. “I just think it was the bureaucrats.”